Economic Survey points to decrease in agricultural growth in 2025-26

The Economic Survey, tabled in Parliament on Thursday (January 29, 2026), has noted that the average annual growth rate in the agriculture and allied sector over the last five years has been around 4.4% at constant prices. However, in the second quarter of 2025-26, the agriculture sector registered a growth of 3.5%, almost one percentage point less than the average. “The decadal growth of 4.45% (2015-16 to 2024-25), the highest in comparison to previous decades, has primarily resulted from the strong performance in livestock (7.1%) and fishing and aquaculture (8.8%), followed by the crop sector at 3.5%,” it added.

Foodgrains production rises

The country’s foodgrains production witnessed a steady increase, despite certain challenges, the Survey said. “India’s foodgrain production is estimated to have reached 3,577.3 lakh metric tonne (LMT) in Agriculture Year (AY) 2024-25, an increase of 254.3 LMT over the previous year. This growth has been driven by higher output of rice, wheat, maize and coarse cereals,” it added.

Scope for enhancing productivity

The Survey found that while the average annual growth rate (AAGR) in agriculture and allied activities has shown improvement, exceeding the global average of 2.9% over the same period, there remains substantial potential to enhance agricultural productivity.

“Yields across several crops, including cereals, maize, soybeans, and pulses, continue to trail global averages,” it said, suggesting greater efforts to accelerate the integration of newer varieties of seeds and to encourage farmers to adopt quality seeds through field demonstrations and the dissemination of successful farmer experiences.

“A way forward towards better implementation could be through the involvement of strengthened extension services and by integrating Farmer-Producer Organisations (FPOs), Primary Agriculture Cooperative Societies (PACS) and Self Help Groups (SHGs) into the implementation framework,” the Survey pointed out.

“The strengthening of cooperatives and the rise of farmer-producer organisations (FPOs), have further expanded access to credit, innovative technology, and efficient value chains,” the Survey said adding that these entities play a vital role in empowering small and marginal farmers by facilitating collective bargaining and ensuring fair prices for their produce.

“Promoting climate-resilient agricultural practices, such as drip irrigation and sprinkler systems, as well as diversifying to high-yield, an appropriate crop mix of climate resilient/drought resistant crops, is critical for sustainability,” it concluded.