Overview of Indian Agriculture Market History

In several agricultural sectors, India is the world’s leading or one of the largest producers. For example, the country is second largest milk producing country in the world. India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 18% of the GDP in 2007, employed 70% of the total workforce and despite a steady decline of its share in the GDP, is still the largest economic sector and plays a significant role in the overall socio-economic development of India. Yields per unit area of all crops have grown since 1950, due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation, technology, application of modern agricultural practices and provision of agricultural credit and subsidies since Green revolution in India. However, international comparisons reveal that the average yield in India is generally 30% to 50% of the highest average yield in the world.
Indian Punjab is called the "Granary of India" or "India's bread-basket. It produces 14% of India's cotton, 20% of India's wheat, and 9% of India's rice.

According to recent studies, the total turnover of Indian food market is approximately Rs.250000 crores (US $ 69.4 billion), out of which, the share of value-added food products is around Rs.80000 crores (US $ 22.2 billion). The Government of India has also sanctioned proposals for joint ventures, foreign collaborations, industrial licenses and 100% export oriented units conceiving of an investment of Rs.19100 crores (US $ 4.80 billion) out of which foreign investment is over Rs. 9100 crores (US $ 18.2 Billion).

The Indian agricultural food industry also assumes significance owing to country's sizable agrarian economy that accounts for over 35% of GDP and employs around 65 % of the population. Both in terms of number of joint- ventures / foreign collaborations and foreign investment, the consumer food segment has the top priority. The other salient features of the Indian agro industry, which have the capacity to lure foreigners with assuring benefits are the aqua culture, deep sea fishing, milk and milk products, meat and poultry segments.