At about 58%, more than half of India’s population is engaged in agriculture. The contribution to the world food trade made by India has been consecutively increasing year on year. As India is one of the largest countries in terms of size, it enjoys the benefit of several agro-climatic zones enabling the country to grow a variety of agricultural commodities. The Indian food & grocery market is the 6th largest in the world. India is also the 2nd largest fruit producer in the world. Due to cost-effective labour availability in India and adoption of innovative technology by large corporations as well as small farmers in labour-intensive fields, the country has been able to increase the yield of agricultural products while reducing overall costs, making the country a preferred export hub. This transformation has enabled India to become one of the fastest growing markets for agricultural equipment.
The government has been providing several incentives in the farming sector to ensure adoption of new technology to increase crop yield and make India a self-sufficient country in terms of domestic food availability.
Indian agricultural machinery sector attracted Foreign Direct Investment (FDI) inflow of USD 466 million between April 2000 and December 2017. Meanwhile, the agricultural services sector attracted FDI inflow of USD 2 billion during the same period.
- In December 2017, the Indian Government, State of Tamil Nadu, and the World Bank signed a loan agreement of USD 318 million for the ‘Tamil Nadu Irrigated Agriculture Modernisation Project', which is expected to benefit 500,000 farmers in the state.
- The Government of India has allowed 100 % FDI in marketing of food products and in food product e-commerce under the automatic route in India.
- Britannia Industries Ltd.
- Escorts Group
- Godrej Agrovet
- Rallies India
- Gross Value Added (GVA) by the agriculture, forestry and fishing industry in India is estimated at ~USD 275 billion in FY18.
- Food grain production in India is estimated at ~280 million tonnes (MT) with production of rice and wheat in the country estimated at ~112 MT and ~99 MT respectively in FY17.
- In FY17, milk production is estimated at ~165.4 MT, while meat production is estimated at ~7.4 MT.
- India has the 6th largest food and grocery market and is the 2nd largest producer of fruits in the world