Notes on Agriculture and Allied Activities

Agriculture is the main occupation of the people residing in this country. Agricultural and other allied activities contribute the most to the GDP (Gross Domestic Product) of the country. Agriculture accounts for 14% of total GDP and 49 percent of India’s total population is directly dependent on agriculture. Agriculture and other allied activities provide food to the people of the country and make this country self-sufficient. It also provides fodder for domestic animals and raw materials for agro-based industries.

Agriculture and allied activities 

Agriculture and other allied activities mainly include animal husbandry such as poultry, dairy, pisciculture (fishery), apiculture (producing honey), and sericulture (producing raw silk from caterpillars). These activities also include conservation of water and soil, horticulture (cultivation of flowers), agro and social forestry, etc. Agriculture and other allied sectors contribute 26.8 percent of GDP (Gross Domestic Product). It employs a large portion of the population, especially since it contributes significantly to rural employment. Some crops, such as cotton, jute, etc., are used as the raw materials for various agro-industries. Different agriculture and allied industries also provide employment to a large section of society and contribute immensely towards the country’s growth. Various allied sectors, such as fisheries and forestry, contributed approximately 276.37 billion US dollars in the financial year 2020. With time, as consumer spending increases, the growth also increases. A thought pandemic hit this sector, and this sector faced a huge loss. However, consumer spending increased by up to 6.6 percent in the post-pandemic period. The Indian food and grocery market is the sixth largest in the world, with retail accounting for 70% of total sales. The Indian food processing market accounts for 32% of the overall market. This food processing industry secures the fifth position in the global market in terms of production, consumption, exports, etc. Agriculture and allied activities have a great impact on import and export. According to a survey, the total value of exported goods is approximately 41.25 billion US dollars in the financial year 2021.

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Growth rate of Agriculture and other allied sectors

An economic survey conducted in 2020 suggests that food grain production increased by 11.44 million tonnes. This means that agricultural production will rise by 2% in 2021.In 2021, the net agricultural production was recorded at 331.05 million metric tonnes, which exceeds all the predictions. Even the population of livestock also increased immensely during this time. The world’s total population of cattle acquires 31 percent of the total global population of cattle. The country’s milk production witnessed a rapid growth of 10 percent between the financial years 2020 and 2021. This fiscal year, horticulture production is expected to increase by 2.7 percent. Sugarcane is another very important raw material for the agriculture and allied industries. Between financial years 2019 and 2020, the net production of sugar reached 26.46 million tonnes. According to the Indian Sugar Mill Association (ISMA), the sugar industry provides employment opportunities to millions of people. India is among the top 15 leading countries that export agricultural goods. In the financial year 2020 alone, India exported agricultural products worth 35.094 billion US dollars. It can be predicted that by 2025, the total market for agriculture and other allied activities will increase by 24 billion US dollars. In fact, India is the world’s second largest producer of rice, sugar cane, groundnuts, wheat, cotton, and other fruits and vegetables. It also produces one-fourth of the world’s total pulse production. The organic food sector in India is expected to grow by 10% (from 2700 crores of Indian rupees to 75,000 crores of Indian rupees) by 2025.the market for processed food is expected to grow from 263 billion US dollars to 470 billion US dollars by 2025. To sustain this growth, the government of India has invested in infrastructure worth one trillion US dollars. The food processing industry in India is open to 100% FDI (foreign direct investment). The key export products from India include processed foods, and currently, India exports processed foods worth 6.02 billion US dollars. 

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Conclusion 

It is evident that agriculture and allied activities have a bright future in India. It contributes immensely to the economy and helps sustain economic growth. Agriculture and allied industries provide employment opportunities to a million people and contribute to the overall development of the country, such as rural development, water and soil conservation, etc.