Agriculture Sector in India: Comprehensive Industry Analysis Report | Scrolls
- Editor
- Oct 26, 2025
- 2 min read
by KarNivesh | 26 October, 2025
India’s agriculture sector continues to be the heart of the nation’s economy. Valued at ₹38,386 billion in 2024, it is expected to reach ₹61,973 billion by 2034, growing at a steady 4.9% annual rate. Agriculture contributes about 16% to India’s GDP and provides jobs for 45.5% of the workforce, nearly 230 million people.
Sector Overview
The sector is broad and diverse. Farming forms the largest share at 35%, followed by fertilizers (15%) and agricultural equipment (12%). India holds a strong global position as the largest producer of pulses, milk, and spices, and the second largest producer of rice and wheat.
From FY17 to FY23, the sector grew about 5% annually, and foodgrain production hit a record 354 million tonnes in 2024–25, up 6.6% from the previous year. Rice and coarse cereals showed the fastest growth among major crops.
Leading Players
Among top agriculture companies, PI Industries leads the market with a value of ₹70,052 crore, followed by Coromandel International and UPL Limited. Regionally, North India dominates the industry with a 32.6% market share, followed by South India (28.5%) and Western India (22.4%).
Technology & Innovation
Modern technology is changing Indian agriculture. Precision farming now covers 45% adoption, and the market is growing rapidly. Artificial Intelligence in agriculture, currently valued at ₹5,880 crore, is projected to grow almost five times by 2033. The AgriTech ecosystem is booming too — from just 50 startups a decade ago to more than 1,200 startups today.India also ranks 4th globally in organic farming, covering over 59 lakh hectares.
SWOT Snapshot
Strengths: Large arable land, favorable climate, and strong food production capacity.Weaknesses: Small landholdings, dependence on monsoon, and limited use of modern machinery.Opportunities: Expanding organic farming, export potential, and tech-driven growth.Threats: Climate change, water shortages, and soil degradation remain major concerns.
Government Support
The government has been a major growth driver. PM-KISAN received ₹60,000 crore for farmer support, while the Agricultural Infrastructure Fund sanctioned ₹52,738 crore for projects nationwide. The total agriculture budget for 2024–25 stands at ₹1.73 lakh crore.
Investments & Future Outlook
Foreign and venture capital investments are on the rise. FDI doubled from ₹9,375 crore in 2020 to ₹21,375 crore in 2025, while VC funding reached ₹17,651 crore across 142 deals. The AgriTech market is projected to reach ₹2 lakh crore by 2030.Despite climate and water challenges, the future looks promising. McKinsey estimates the sector could contribute ₹50,430 billion to India’s GDP by 2030.
Final Thoughts
India’s agriculture is not just surviving — it’s evolving. With record harvests, rising exports, strong policy support, and rapid tech adoption, the country’s farmers are stepping into a new era of smart and sustainable farming. The next decade promises to turn India’s traditional strength into a modern growth engine.
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