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Issues such as climate change and water scarcity present significant obstacles that require focused and targeted interventions, the Economic Survey, tabled in Parliament on Friday (January 31, 2025), noted in a chapter on agriculture and food management sectors. The Survey recommended more research and development activities for promoting agricultural production patterns and practices that align with specific agro-climatic conditions and natural resource availabilities.
The Survey found that the agriculture sector has shown robust growth, averaging 5% annually from 2016-17 to 2022-23, “demonstrating resilience despite challenges”. In the second quarter of 2024-25, it recorded a growth rate of 3.5%. The Gross Value Added (GVA) of agriculture and related sectors have improved from 24.38% in 2014-15 to 30.23% in 2022-23. “Consistent and stable growth of agriculture at around 5%, with a 20% share of overall GVA in the economy, will contribute one per cent growth to GVA,” the Union Agriculture Ministry said in a statement on the Survey.
The Survey raised concerns over the slower growth rate of oilseeds at 1.9%, especially considering India’s heavy reliance on imports to satisfy domestic edible oil demands. “High-value sectors such as horticulture, livestock, and fisheries have emerged as the primary contributors to the overall growth of agriculture. Among these, the fishery sector has demonstrated the highest compound annual growth rate (CAGR) at 13.67%, followed by livestock with a CAGR of 12.99% during 2013-14 to 2022-23 (at current prices).”
On irrigation, the Survey pointed out that the country experienced a significant increase in irrigation area coverage and intensity between 2015-16 and 2020-21. “The coverage of irrigation area has increased between 2015-16 and 2020-21 from 49.3% to 55% of the gross cropped area (GCA), while irrigation intensity has risen from 144.2% to 154.5%. States such as Punjab, Haryana, Uttar Pradesh, and Telangana exhibit high irrigation coverage of their gross cropped area, with figures around 98%, 94%, 84%, and 86%, respectively. In contrast, states like Jharkhand and Assam lag significantly, with irrigation coverage below 20%, underscoring the necessity to improve irrigation and water management practices in regions with lower irrigation levels,” it noted.
The Economic Survey also pointed out that kharif food grain production in 2024 is projected to reach 1,647.05 lakh metric tonnes (LMT), which is an increase of 89.37 LMT, compared with the previous year. Agricultural income has increased at 5.23% annually over the past decade, it added. It said there is a concerted focus on modernising food grain storage systems, particularly in remote and hilly areas, which reflects a strong commitment to improving the overall supply chain infrastructure.
Published – January 31, 2025 08:23 pm IST
