TLDR;
This video provides a detailed analysis of the agricultural sector in India, drawing insights from the Economic Survey. It covers the sector's contribution to the national income, growth rates, and key trends. The discussion includes government schemes aimed at improving agricultural productivity, challenges faced by the sector, and emerging trends like the focus on bio-fuels and their impact on food security.
- Agriculture contributes significantly to India's national income and employment.
- Government schemes aim to improve seed quality, irrigation, and soil health.
- A growing focus on bio-fuels presents both opportunities and challenges for food security.
Introduction to the Economic Survey and Agriculture [0:00]
The lecture begins by outlining the plan to discuss the agricultural sector's trends in India, based on the Economic Survey. This includes analysing the performance of agriculture in the current and upcoming financial years, examining current government schemes, and addressing the emerging trend of bio-fuel production and its implications. The discussion also aims to identify future prospects for Indian agriculture. The content is relevant for both preliminary and main examinations, specifically in areas concerning economic concepts, the Indian economy, agricultural development, and related government initiatives.
Agriculture's Contribution to GDP and National Income [2:47]
The agricultural sector, including activities like animal husbandry and fishing, contributes approximately one-fifth (20%) to India's national income. A significant portion of the population, around 46.1%, is engaged in agriculture and related activities. The sector has seen a growth rate of 4.45% over the past decade (2016-2025), and 4.4% in the last 5 years, which is better than the global average. While this growth is positive, there is a need for further improvement to increase income for a larger portion of the population. The Gross Value Added (GVA) in agriculture is expected to be 3.1% this year, which is less than the 4.6% of the previous year. Agriculture contributes 15.2% to the overall GDP, which is the lowest compared to the industrial (24.3%) and service sectors (51.1%).
Food Processing and its Role in Employment and Exports [8:56]
Food processing, which involves transforming agricultural produce into consumable products like jams, sauces, and juices, is crucial for increasing farmers' income. It is a significant sector for organised job creation in India, accounting for 12.91% of total organised sector employment. In the fiscal year 2024-25, India's total agricultural and food exports amounted to $49.43 billion, representing 11.2% of the country's total exports. Processed food constitutes a growing portion of these exports, increasing from 14.9% to 20.4% in 2025. The development of the food processing industry is vital for employment generation and increasing foreign exchange reserves through exports.
Strategies for Increasing Farmers' Income [12:34]
Indian farmers typically have small land holdings compared to those in developed countries. To boost their income, integrating animal husbandry and fisheries with agriculture is essential. Over the past decade (2015-2024), animal husbandry has grown by 195%, while fisheries have grown by 140%. In 2024-25, food grain production is estimated to reach 357.73 million metric tons, exceeding the previous year's figures. Horticulture production has reached 362.08 million tons, surpassing food grain production. Horticulture contributes 33% to the gross value added in the agricultural sector, indicating a shift towards crop diversification for better market value. India is the largest producer of dried onions globally, while China leads in the production of fruits, vegetables, and potatoes.
State-wise Crop Production and Productivity [19:44]
Uttar Pradesh is the leading producer of rice, wheat, and total food grains in India. Rajasthan is the top producer of coarse grains and oilseeds, particularly mustard and rapeseed. Madhya Pradesh leads in maize and pulses production. Gujarat is the top producer of groundnuts, while Maharashtra leads in cotton production, and West Bengal in jute production. Agricultural productivity is measured by the amount of crop produced per unit area. Globally, India's agricultural sector has a growth rate of 4.4%, compared to the world average of 2.9%. However, the productivity of grains, maize, soybean, and pulses is lower than the global average, while groundnut productivity is higher.
Impact of El Niño and La Niña on Agriculture [26:57]
El Niño conditions negatively impact agricultural production, while La Niña conditions have a positive impact. Analysis of 27 El Niño events between 1951 and 2014 showed that 15 of those years experienced a decrease in the area, production, and yield of pulses. During El Niño years, the area under pulse cultivation decreased by 2-9%, production decreased by 6-30%, and yield decreased by 5-25%. Conversely, La Niña conditions lead to increased area, production, and productivity.
Challenges in the Agricultural Sector [29:44]
The agricultural sector faces several challenges, including small land holdings, inadequate infrastructure, and insufficient access to inputs and credit. A lack of knowledge and technology, along with poor soil health, also hinder productivity. Imbalanced use of fertilisers, particularly excessive nitrogen, leads to reduced soil fertility and desertification. Climate change and inadequate availability of fodder for livestock further exacerbate these issues.
Government Initiatives to Support Agriculture [33:45]
The government has launched several schemes to address these challenges. The Seed Village Scheme promotes the production of high-quality seeds by involving farmers in seed production. The Pradhan Mantri Krishi Sinchai Yojana (PMKSY), launched in 2015-16 with the motto "Har Khet Ko Pani" (Water to Every Field), aims to expand irrigation coverage. As a result, the gross irrigated area has increased to 55.86%. The PMKSY also includes a component called "Per Drop More Crop," which promotes micro-irrigation techniques like drip irrigation. The Soil Health Card Scheme, launched in 2015, provides farmers with information about the health of their soil, based on 12 parameters.
Financial Support and Market Access for Farmers [41:11]
The Kisan Credit Card (KCC) scheme provides farmers with affordable credit at an interest rate of around 4%. There are 7.72 crore active KCC accounts. To promote mechanisation, the government has established 25,689 Custom Hiring Centres, where farmers can rent expensive agricultural equipment. The National Food Security Mission aims to increase the production of oilseeds to reduce import dependence. Oilseed production has increased by 55% in the last decade, reducing edible oil imports from 63.2% to 56.25%. A new mission has been launched to achieve self-sufficiency in pulse production by 1 October 2025.
Marketing and Price Support Mechanisms [47:06]
Agricultural Produce Market Committees (APMCs) are established by state governments to ensure fair prices for farmers. The e-NAM (Electronic National Agriculture Market) is an online platform that connects 1,522 markets across the country, with 1.79 crore registered farmers. Farmer Producer Organisations (FPOs) are groups of farmers who collectively market their produce. The government declares Minimum Support Prices (MSPs) for 22 crops to guarantee a minimum price for farmers, covering 1.5 times the production cost. The PM-Kisan scheme provides direct income support of ₹6,000 per year to small and marginal farmers.
Emerging Trends: Bio-fuels and Food Security [53:36]
India's bio-fuel policy, initiated in 2018, aims to reduce dependence on crude oil imports by promoting the production of bio-ethanol and bio-diesel. However, the increased focus on maize for ethanol production may compromise food security, as farmers shift away from producing essential food crops. To address this, the government should focus on promoting the production of second-generation bio-fuels from waste and non-food crops, while also ensuring better prices for pulses and oilseeds to maintain a balanced diet and food security. The government plans to spend ₹162,671 crore in the agricultural sector.
Way Forward and Critical Analysis [58:06]
The way forward involves using AI in agriculture and focusing on post-harvest processing. A critical analysis is needed to balance the focus on ethanol production with the need to maintain food security. The video concludes by emphasising the importance of addressing the challenges and leveraging the opportunities in the agricultural sector to ensure sustainable growth and food security.
