What is the projected agricultural growth rate for India in 2025-26?

India's agricultural growth is estimated to be around 4% in the 2025-26 financial year.

Why does India need 5% agricultural growth, according to Niti Aayog?

A 5% agricultural growth rate is considered necessary to support India's goal of becoming a developed nation.

What are the challenges facing India's agriculture sector according to Ramesh Chand?

Challenges include fluctuating growth, counterfeit inputs, and managing surplus production, with a need to boost exports or use for biofuels.

Home / Business and Economy / India's Agri Growth Slows to 4% Target

India's Agri Growth Slows to 4% Target

8 Dec

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Summary

Agricultural growth is projected at 4% for FY 2025-26.
India needs 5% agricultural growth to become a developed nation.
Counterfeit inputs and export needs are critical issues.

India's agricultural sector growth is projected to slow to approximately 4% in the 2025-26 financial year, a decrease from the 4.6% growth recorded in the previous fiscal year. According to Niti Aayog member Ramesh Chand, this fluctuation is influenced by various factors, including the base effect. He emphasized that the nation must attain a consistent 5% agricultural growth to support its ambition of becoming a developed economy.

Chand also pointed out the growing domestic food demand, which is only increasing at 2.5% annually due to slower population growth. This necessitates strategic planning for surplus production, either through enhanced exports or by developing alternative uses such as biofuels. He suggested India could benefit from adopting China's intensive farming practices, particularly regarding fertilizer use, while mitigating environmental impacts.

Key growth drivers identified include increasing crop intensity, expanding irrigation facilities, and reducing yield disparities between different states. Addressing the issue of counterfeit agricultural inputs was also stressed as vital for farmer welfare and productivity. Furthermore, advocating for direct deficiency payments over traditional procurement for minimum support prices could help maintain market price stability and export competitiveness.