Agriculture drives India’s growth trajectory towards Viksit Bharat : PHDCCI
MUMBAI : India’s food processing sector’s market size is estimated to more than double to USD 700 billion in 2030 from USD 307 billion in 2023, driven by growing demand for processed products, according to industry body PHDCCI.
On Friday, the association released a report ‘India’s Agricultural Transformation: From Food Scarcity to Surplus’. The food processing sector is expected to reach USD 700 billion by 2030, the report said, adding that the market size will further increase to USD 1,100 billion by 2035, USD 1,500 billion by 2040, USD 1,900 billion in 2040 and USD 2,150 billion by 2047.
In a statement, PHDCCI said India’s agriculture and allied sector has been growing strongly. From 2013-14 to 2023-24, the sector maintained average growth rate of 3.9 per cent, emphasising its steady contribution to the nation’s economy.
Even during the pandemic, agriculture remained vital, achieving a commendable 4 per cent average growth rate, said Hemant Jain, President, PHD Chamber of Commerce and Industry (PHDCCI).
India’s agriculture sector has transformed, evolving from a food-scarce nation to a food-surplus powerhouse. Agriculture growth for 2024-25 is estimated at 3.8 per cent, reflecting the sector’s ability to support India on its glorious path to Viksit Bharat, said Jain.
For the year 2024-25, the chamber projected foodgrain production to grow by 2 per cent, said Ranjeet Mehta, CEO & Secretary General, PHDCCI.
Food grain production in India is significantly influenced by factors such as electricity availability, warehousing capacity, and gross irrigated area. Rainfall does not appear to have a statistically significant impact, which contrasts with the traditional view of India’s heavy reliance on monsoon for agriculture, said Dr. SP Sharma, Chief Economist and Deputy Secretary General, PHD Chamber of Commerce and Industry.
Availability of fertilizer and food grain production are strongly correlated, suggesting heavy reliance on the use of fertilizers to enhance soil fertility, boost crop yields, and sustain agricultural productivity, said Dr Sharma. Going ahead, PHDCCI recommends that Government should continue handholding measures for agriculture and allied sector, widespread application of science-led technology, infrastructure development, adoption of crop diversification, implementation of best practices of the states and broadening the range of agricultural exports products, said the industry body.