Economic Survey 2024-25: Key Insights on Agriculture and Agro-Based Industries

The Economic Survey 2024–25, recently released by the Indian government, offers a deep dive into the country’s economic landscape. One of the most critical areas it covers is agriculture and allied industries, which remain the backbone of India’s economy. Let’s explore the key insights from this year’s survey, focusing on agriculture, allied sectors, and agro-based industries.

A Snapshot of India’s Agriculture Sector

Agriculture continues to be a vital part of India’s economic growth, contributing about 17-18% of the Gross Domestic Product (GDP) and employing over 50% of the workforce. The government has been making consistent efforts to enhance productivity, sustainability, and farmer welfare, and this year’s survey highlights some significant progress.

1. Growth and Performance

• The agriculture sector recorded a 4.2% growth rate in 2024-25, slightly surpassing last year’s figures.
• Production of key crops like cereals and pulses grew by 3.5%, thanks to favorable monsoons and improved irrigation.
• India’s horticulture production exceeded 350 million metric tonnes, reinforcing its status as a leading global producer of fruits and vegetables.

2. Government Initiatives and Support

• PM Kisan Samman Nidhi continued providing direct cash support to over 11 crore farmers.
• Digital Agriculture Mission promoted modern technologies like AI, IoT, and drones for precision farming.
• Natural and Organic Farming received a boost through the Zero Budget Natural Farming (ZBNF) initiative.
• Massive investments were made in cold storage, rural roads, and agri-logistics to curb post-harvest losses.

The Role of Allied Sectors: Dairy, Fisheries, and Livestock

Allied sectors such as dairy, fisheries, and poultry are critical in ensuring rural prosperity. This year’s Economic Survey highlights several achievements in these areas:

1. Dairy and Livestock

• India remains the largest milk producer in the world, accounting for 24% of global milk production.
• The Rashtriya Gokul Mission continued its work in enhancing indigenous cattle breeds.
• The expansion of dairy cooperatives and farmer producer organizations (FPOs) helped improve milk marketing and procurement.

2. Fisheries Growth

• The fisheries sector saw a robust 7.5% growth, with increased focus on exports.
• The PM Matsya Sampada Yojana helped modernize aquaculture, boosting fish production.
• Shrimp and inland fisheries emerged as strong contributors to rural employment and farmer earnings.

3. Poultry and Meat Processing

• The poultry industry grew by 6.3%, driven by rising domestic consumption and exports.
• The National Livestock Mission promoted modern meat processing units, ensuring better hygiene and quality standards.

Agro-Based Industries: Adding Value to Agriculture

Agro-based industries are essential for enhancing farmer incomes and creating employment. The Economic Survey 2024-25 provides useful insights into this sector:

1. Food Processing Industry

• The food processing sector expanded by 8%, with a rise in investments in modern processing facilities.
• The Production Linked Incentive (PLI) Scheme attracted major funding in ready-to-eat foods, beverages, and dairy products.
• The Operation Greens initiative was extended to stabilize prices of perishable crops like potatoes, onions, and tomatoes.

2. Textile and Jute Industry

• Cotton and jute-based industries experienced moderate growth, facing challenges due to fluctuating raw material costs.
• The National Textile Policy focused on boosting cotton yield and modernizing textile mills.
• Export incentives and quality control measures were introduced to enhance competitiveness in global markets.

3. Sugar and Ethanol Industry

• India’s sugar production exceeded 32 million tonnes, reaffirming its global leadership in sugar exports.
• The Ethanol Blending Program (EBP) successfully raised ethanol blending in petrol to 12%, reducing crude oil import dependence.
• Incentives were provided for ethanol production from sugarcane and maize, helping both farmers and the energy sector.

Challenges and the Road Ahead

Despite the sector’s strong performance, several challenges remain:

Key Challenges

• Climate Change: Unpredictable weather patterns are affecting crop yields.
• Post-Harvest Losses: Limited storage and logistics infrastructure cause significant wastage.
• Small Land Holdings: Fragmented farms make mechanization and large-scale production difficult.
• Market Access: Farmers still struggle with price fluctuations and middlemen exploitation.

Potential Solutions

• Expanding crop insurance schemes to protect farmers from climate risks.
• Strengthening agri-infrastructure to improve storage, processing, and transportation.
• Encouraging farm mechanization and digitization through increased credit access.
• Implementing export-friendly policies to boost India’s presence in global agri-trade markets.

Final Thoughts

The Economic Survey 2024-25 reaffirms that India’s agriculture and allied sectors are resilient and full of potential. With continued government support, advanced technology, and infrastructure improvements, the sector is well-positioned for sustained growth. Addressing existing challenges and leveraging innovative solutions will ensure a brighter future for Indian farmers and agro-based industries