India’s farm economy has entered its strongest growth phase since Independence, delivering uninterrupted income expansion for nearly a decade, as per report titled ‘Agriculture in meeting aspirations of rising India’, released on October 10 last year, by Ramesh Chand, member of NITI Aayog.
As per report, agriculture not only survived global shocks such as Covid-19 but also outperformed manufacturing and the overall economy, reinforcing its central role in India’s long-term development strategy.
Between 2015-16 and 2024-25, India’s agricultural sector did not record a single year of negative income growth. Over the same period, agricultural growth averaged 4.42% per year, higher than China’s 4.10% and above global agricultural growth.
Producer income expanded at 10.11% annually between FY15 and FY24, outpacing manufacturing and the overall economy. Farmers’ incomes rose by 126% over the decade, while total producer incomes climbed 108% between FY16 and FY23. This marks the strongest decadal performance for Indian agriculture since 1950.
The sector also demonstrated unusual stability, growing through the Covid years when non-agricultural sectors contracted sharply, highlighting its resilience and demand-driven nature.
The growth was not merely volume-led but structurally driven by diversification into higher-value crops and allied activities. India’s agricultural gross value added accelerated significantly after FY15, taking annual growth to 4.45%, the highest in any ten-year period in the country’s modern economic history.
Dairy output increased from 146 million tonnes in FY15 to more than 239 million tonnes by FY24, while fruit and vegetable production rose from 280.7 million tonnes to 367.7 million tonnes. India remains the world’s largest milk producer and the largest rice exporter, reinforcing its role in global food supply chains.
Financial depth also improved. Agricultural credit rose from 29.4% of output in FY14 to 41.7% in FY24, while digital market integration expanded with 1,522 mandis connected to e-NAM by mid-2025.
Agriculture now contributes nearly 19.7% of national income while employing about 46% of India’s workforce, making it indispensable to inclusive growth.
Improved price realisation strengthened farm economics, with terms of trade for agriculture improving by more than 41 percentage points between FY09 and FY21. Wholesale agricultural prices have delivered positive real growth of around 2.4% per year for over a decade.
Risk mitigation has also expanded. Coverage under the crop insurance scheme rose from 3.4 crore farmers in FY19 to 4.1 crore in FY25, helping stabilise incomes amid climate and price volatility.
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India’s agriculture sector has entered its strongest and most resilient growth phase in over seven decades, combining rising incomes, structural diversification and financial deepening, making it a cornerstone of India’s long-term economic transformation.
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Published on: Jan 12, 2026, 2:40 PM IST
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