Agriculture, with a market output of Rs. 5,086 billion (Euro 87 billion), is a key sector in the Indian economy and contributes more than 18.6% of the gross national product (GNP). For a large section (more than 60%) of the population, agriculture is a means of subsistence and livelihood. However, more than 80% of the land is under small, marginal farmers having land holdings of less than 2 hectares.
India has a wide range of climate and soil types, enabling a diversified agriculture base. India’s important crops are: rice, wheat, coarse cereals, cotton, sugarcane, tobacco, pulses and oilseeds, besides a large range of fruits and vegetables. India is among the top five producers of several food grains and horticulture produce as well as major plantation crops. India also has a large livestock and fisheries sector and is the world’s largest producer of milk.
Agriculture performance is critically dependent on monsoons, as nearly 45% of the agriculture area remains non-irrigated. Vagaries of rainfall can have devastating effects on crops and cause volatile fluctuations in crop harvests, as evident from the agriculture growth trends in the past years. Agriculture also plays an important role in India’s exports. Basmati rice, spices, cashew, processed fruits, and meat products are the major product groups. The proportion of agri-exports to total exports came down from 11.9 per cent in 2003-04 to 10.2 per cent in 2004-05.
There is considerable Govt. intervention in the sector, in the form of farmer subsidies, government-supported rural infrastructure, extension services, and price support to agriculture produce. |
ICREON