Agriculture Industry in India

Market Overview:

The agriculture industry in India size reached INR 80,550 Billion in 2022. Looking forward, IMARC Group expects the market to reach INR 158,991 Billion by 2028, exhibiting a growth rate (CAGR) of 12.2% during 2023-2028. The changing dietary patterns of the masses, rapid population growth, altering weather patterns, increasing frequency of natural disasters, and favorable technological advancements, such as precision farming, data analytics, drones, and automation, are some of the major factors propelling the Indian agriculture market.

The agriculture industry refers to a sector that involves the production, processing, and distribution of agricultural products. It consists of all activities related to cultivating crops, raising livestock, and producing various food and non-food products derived from agricultural resources. Some of the common agriculture products are categorized under fibers, foods, and raw materials. The agriculture industry is diverse and comprises various sectors and sub-sectors, such as crop production, livestock production, agricultural technology, food processing, agricultural inputs (seeds, fertilizers, pesticides), agricultural services, equipment, trade and distribution, and retail.

The agriculture industry in India is expected to expand at a larger CAGR during the forecast period. The significant population growth and increasing demand for food and agricultural products are one of the key factors creating a positive outlook for the market. In line with this, the widespread preference for organic agricultural products among the masses due to the rising environmental consciousness will stimulate the growth of the agriculture industry in India during the forecast period. Moreover, the escalating consumer awareness regarding the advantages of sustainable agriculture and the surging demand for breeding nutritious, high-yielding, and less resource-input-demanding crops is contributing to the market growth. Besides this, the rising adoption of sustainable farming practices to improve crop quality, conserve water, minimize fertilizer usage, and reduce adverse environmental impacts is positively influencing the market growth.

Agriculture Industry in India Trends/Drivers:

Increasing Food Demand

Population growth is a significant driver of the agriculture market due to the increasing demand for food and agricultural products. This is further supported by the inflating rural and urban income levels and changing dietary patterns of consumers. In line with this, the increasing demand for protein-rich foods, such as meat, dairy, and poultry products is propelling the market growth. Moreover, the increasing need to convert natural landscapes into agricultural areas owing to the growing demand for food production is providing an impetus to the market growth.

Various Technological Advancements

Rapid technological advancements and various product innovations in the agriculture industry is acting as a growth-inducing factor. The integration of global positioning systems (GPS) and remote sensing solutions in farming to track field conditions, navigate agricultural vehicles, and monitor crops in real time is favoring the market growth. Moreover, the development of bio-fertilizers and bio-pesticides is presenting remunerative growth opportunities for the market. The increasing adoption of advanced methods, geographic information systems (GIS), drones, and remote sensing technologies, along with the launch of several e-farming applications, is driving the market growth. Apart from this, the utilization of artificial intelligence (AI) and machine learning (ML) to analyze data patterns and trends, predict crop yield, and assist in decision-making is creating a positive outlook for the market.

Introduction of Favorable Government Initiatives

The implementation of various government initiatives to enhance agricultural productivity, ensure food security, improve farmers' income, and promote sustainable practices is providing a considerable boost to the market growth. Moreover, the introduction of favorable initiatives, such as the National Programme on Organic Farming and the Paramparagat Krishi Vikas Yojana, by the Government of India (GoI) to promote bio-agriculture in the country through financial assistance to farmers is facilitating the market growth. Furthermore, the presence of various favorable opportunities by GoI to support and upgrade the overall agricultural infrastructure, including credit facilities for farmers and crop insurance schemes and various incentives for the movement of agriculture products by air transport worldwide, is supporting the market growth.

Agriculture Industry in India Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Agriculture Industry in India, along with forecasts for the period 2023-2028. Our report has categorized the market based on subsectors.

Breakup by Subsectors:

• Farming
• Agriculture Equipment
• Fertilizers
• Pesticides
• Warehousing
• Cold Chains
• Food Processing
• Dairy Market
• Floriculture
• Apiculture
• Sericulture
• Seeds
• Fisheries
• Poultry
• Animal Husbandry
• Animal Feed
• Bio-Agriculture Market
   

Farming is dominating the Agriculture Industry in India

The report has provided a detailed breakup and analysis of the agriculture industry in India based on the subsectors. This includes farming, agriculture equipment, fertilizers, pesticides, warehousing, cold chains, food processing, dairy market, floriculture, apiculture, sericulture, seeds, fisheries, poultry, animal husbandry, animal feed, and bio-agriculture market. According to the report, farming represented the largest segment.

The farming sector is dominating the agriculture industry in India due to the increasing demand for nutritious and diverse food options. Farmers are cultivating crops, raising livestock, and engaging in fisheries to provide a reliable and sustainable supply of food for human consumption. In addition, the growing source of income and employment and rising economic opportunities for individuals and communities in rural areas where farming is the primary economic activity is contributing to the market growth.

Moreover, farming provides an opportunity to farmers and their communities to live and work near nature, fostering a connection with the land and the environment, which in turn is supporting the market growth. Besides this, the increasing inclination toward sustainable farming that focuses on improving soil health and fertility and promoting efficient water management.

Competitive Landscape:

The agriculture industry in India is experiencing significant growth due to the introduction of new technologies and practices to improve productivity, sustainability, and efficiency. Many key players are promoting the adoption of UAVs and drones that are equipped with imaging sensors and cameras to capture high-resolution aerial images, providing farmers with valuable insights into crop health, nutrient deficiencies, and pest infestations. Moreover, several companies are introducing advanced drip irrigation systems, precision farming solutions, and water management technologies to help farmers optimize water usage, improve irrigation efficiency, and promote sustainable farming practices, which is strengthening the market growth. Apart from this, the market is witnessing a steady increase in research and development initiatives as well as investments resulting in improved technology, a better supply chain as well as the use of organic materials for manufacturing high-quality products. Furthermore, rapid advancements, such as the adoption of artificial intelligence (AI) and machine learning (ML) algorithms in agriculture to analyze large datasets, predict crop yields, optimize resource allocation, and detect plant diseases, are driving the market growth.

The report has provided a comprehensive analysis of the competitive landscape in the agriculture industry in India. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• DuPont India
• Rallis India Limited (Tata Chemicals Limited)
• Nuziveedu Seeds Limited
• Godrej Agrovet Limited
• Nestle India Limited
• Advanta Seeds
• Parle Products Pvt. Ltd.
• Britannia Industries Limited
• IFFCO

Recent Developments:

• In 2021, DuPont India announced a collaboration with the Indian Council of Agricultural Research (ICAR) and the Indian Agricultural Research Institute (IARI) to develop climate-resilient crops for Indian farmers. The collaboration aims to develop improved crop varieties that can withstand changing climate conditions and reduce the environmental impact of agriculture in India.
• In 2021, Nestle India Limited launched the 'Nestle Kisan' program, which aims to train and support farmers in adopting sustainable agricultural practices. It has also collaborated with the Indian Council of Agricultural Research (ICAR) to develop a drought-tolerant chickpea variety through sustainable farming methods.
• One of the recent collaborations by IFFCO is with Prasar Bharati for the dissemination of agricultural information through All India Radio and Doordarshan. The Indian Farmers Fertiliser Cooperative (IFFCO) also aims to promote the usage of nano fertilizers, such as nano Urea and Nano DAP, using drone and artificial intelligence (AI) technologies.

Agriculture Industry in India Report Scope:

Key Benefits for Stakeholders

• • IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the agriculture industry in India from 2017-2028.
  • The research study provides the latest information on the market drivers, challenges, and opportunities in the agriculture industry in India.
  • The study maps the leading, as well as the fastest-growing, regional markets.
  • Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the agriculture industry in India and its attractiveness.
  • Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.