2021-2022 Fiscal Almost Over – An Insight on Performance of Indian Agricultural Sector

Most of us would agree that India has been able to step in successfully to cater to the increased global demand after the second half of 2020, despite the unprecedented global pandemic. Our nation has emerged as a significant global supplier of food and other essential agricultural products.

Indian agriculture sector was among the few segments that remained robust amid the pandemic miseries, and as per experts, the country is expected to register a growth rate of 3.6 per cent in the current financial year ending March 2022. On the other hand, India’s agricultural sector is estimated to grow by 3.9% in 2022-2023, i.e. better than the current fiscal.

Various financial reports have conveyed that the services sector accounts for approximately 54 % of India's GVA (Gross Value Added) of 179-180 lakh crore Indian rupees. With a GVA of Rs. 46.5 lakh crore, the Industry sector contributes almost 26 %, while the share from the Agriculture and allied sector is close to 20.2%.

According to the estimates, India’s agriculture sector accounts only for around 14 percent of the country’s economy but for 42 percent of total employment. Nearly 55 percent of India’s arable land depends largely on the amount of rainfall during the monsoon season, to make the economic activities viable.  

Latest reports say India has achieved significant growth of 21.8 percent in the export of agricultural and processed food products in April-August 2021-22, when compared with the corresponding period of 2020-21.

The total exports of Agricultural and Processed Food Products Export Development Authority (APEDA) products increased from $6,485 million in April-August 2020 to $7,902 million in April-August 2021. This was understood from the estimates released recently by the Directorate General of Commercial Intelligence and Statistics (DGCI&S). A noticeable jump is noted in exports of agricultural and processed food products during the first five months of the current financial year. This is in continuation of the growth in exports witnessed in the financial year 2020-21.