The agriculture sector in India plays a crucial role in the country\’s economy, employing 54.6% of the total workforce and contributing 17.8% to the Gross Value Added (GVA) in 2019-20. Recognizing the significance of this sector, the Government of India has implemented various measures to promote sustainable development and improve the income of farmers.
To mitigate risks in agriculture, the government launched the “Pradhan Mantri Fasal Bima Yojana\” (PMFBY) in 2016, an insurance scheme for farmers. Additionally, recent initiatives such as the formation and promotion of 10,000 Farmers’ Producer Organizations (FPOs) and the Agriculture Infrastructure Fund have been introduced to benefit the sector.
According to Land Use Statistics 2016-17, India\’s total geographical area is 328.7 million hectares, with a reported net sown area of 139.4 million hectares and a gross cropped area of 200.2 million hectares. The net irrigated area stands at 68.6 million hectares, supporting agricultural activities.
In terms of Gross Value Added (GVA), agriculture and allied sectors contributed 17.7% to 17.8% of the country\’s GVA in the last five years. The growth in the sector has been fluctuating, ranging from 0.6% in 2015-16 to 6.8% in 2016-17. Capital formation in agriculture and allied sectors, which indicates investment activity, has also experienced fluctuations, with a recovery from a major fall in 2015-16 to 16.4% in 2018-19.
Key statistics highlight the agricultural landscape in India, including the number of operational holdings (14.64 crore), the percentage share of agricultural workers in the total workforce (54.6%), and the percentage of rural households engaged in agriculture (57.8%). Small and marginal holdings constitute the majority (86.08%) of total land holdings, with the average holding size being 1.08 hectares.
Source: Government of India
