Agriculture grows 3.5% in Q2; Kharif output surges – Firstpost

The ‘Agriculture and Allied Actions’ sector has lengthy been the spine of the Indian financial system, considerably contributing to nationwide earnings and employment. In response to the Financial Survey 2025 tabled in Parliament on Friday, in FY24, this sector accounted for about 16 per cent of India’s GDP at present costs and supported round 46.1 per cent of the inhabitants. Past its financial contributions, agriculture performs an important function in meals safety, influencing different industries and sustaining livelihoods.

Lately, the sector has demonstrated resilience, rising at a median price of 5 per cent yearly from FY17 to FY23, regardless of challenges. Within the second quarter of FY25, the agriculture sector recorded a progress price of three.5 per cent, marking a restoration from the earlier 4 quarters the place progress different between 0.4 per cent and a pair of.0 per cent. This enchancment will be attributed to beneficial climate patterns, superior agricultural practices and authorities initiatives to reinforce productiveness and sustainability.

Listed below are 10 key insights into India’s agricultural sector:

1. Regular progress regardless of challenges

• The agriculture sector has proven constant progress with a CAGR of 5 per cent from FY17 to FY23.

• Progress in Q2 of FY25 stood at 3.5 per cent, reflecting a restoration from earlier quarters.

2. Rising kharif foodgrain manufacturing

3. Agricultural earnings progress

• Agricultural earnings has grown at an annual price of 5.23 per cent over the previous decade.

• This compares to six.24 per cent for non-agricultural earnings and 5.80 per cent for the general financial system.

4. Crop yield and productiveness gaps

• India contributes 11.6 per cent of the world’s complete cereal manufacturing.

• Nevertheless, crop yields stay considerably decrease than these of main producers.

5. Progress in high-value sectors

6. State-wise agricultural efficiency

• Andhra Pradesh leads with an 8.8 per cent CAGR in agriculture (excluding forestry and logging) from 2011-12 to 2020-21.

• Madhya Pradesh follows at 6.3 per cent and Tamil Nadu at 4.8 per cent.

7. Shift in direction of high-yield crops

8. Challenges in oilseed manufacturing

9. Altering dietary preferences

• Rising incomes are driving elevated consumption of horticultural merchandise, livestock, and fisheries.

• Efficient post-harvest administration and sturdy advertising and marketing infrastructure are wanted to assist this shift.

10. Authorities initiatives for agricultural growth

• Programmes comparable to Per Drop Extra Crop (PDMC) and the Nationwide Mission on Sustainable Agriculture (NMSA) promote sustainable farming.

• Digital platforms just like the Digital Agriculture Mission and e-NAM improve know-how adoption and value discovery.

• PM-KISAN supplies direct earnings assist to farmers.

India’s agriculture sector continues to evolve formed by technological developments, coverage reforms and altering consumption patterns. Whereas challenges comparable to yield gaps and dependency on imports persist, focused interventions and investments promise a sustainable and affluent future for Indian agriculture.