Synopsis
India has transformed from a food-deficient nation to a food-surplus powerhouse, driven by significant agricultural growth, according to a PHDCCI study. The report anticipates substantial growth in food production and exports, highlighting the agricultural sector's resilience and its pivotal role in global trade.Key Takeaways
- India's foodgrain production is set to grow by 2% by 2024-25.
- Exports of agricultural products are projected to reach $700 billion by 2047.
- Electricity and warehousing are crucial for food production.
- Resilience in agriculture is emerging, reducing reliance on monsoon rainfall.
- Rice exports rose by 44.61% in January 2025.
New Delhi, Feb 19 (NationPress) India has transitioned from being a food-deficient nation to a food-surplus powerhouse with impressive export outcomes, driven by strong growth in agriculture. This transformation underscores the resilience of the agricultural sector and its vital role in the global agricultural trade framework, as highlighted in a report from the apex business chamber PHDCCI.
The report, named 'India’s Agricultural Transformation: From Food Scarcity to Surplus', anticipates a 2 percent growth in the country’s foodgrain production, reaching approximately 3,357 lakh tonnes for the fiscal year 2024-25.
The chamber's forecasts suggest a remarkable surge in exports of agricultural and processed food products, predicting that exports will hit $125 billion by FY2030, $250 billion by FY2035, $450 billion by FY2040, and $700 billion by FY2047.
Additionally, the PHDCCI study estimates that India’s food processing sector will grow to $700 billion by FY2030, $1,100 billion by FY2035, $1,500 billion by FY2040, $1,900 billion by FY2040, and $2,150 billion by FY2047.
The report indicates that while certain states excel in agricultural productivity, their overall economic growth is relatively modest. This presents a chance to better utilize agricultural achievements to stimulate broader economic progress. By enhancing connections between agriculture and other sectors, these states can open up new growth opportunities, promoting more inclusive and balanced economic development, as per the report.
Overall, the analysis indicates that foodgrain production in India is heavily influenced by factors such as electricity availability, warehousing capacity, and gross irrigated area.
Interestingly, rainfall does not show a statistically significant impact, which contrasts with the conventional belief in India’s dependency on the monsoon for agriculture. The report suggests a moderate association, indicating that a more resilient agricultural system has emerged in the nation.
PHDCCI stated that the purpose of the study was to analyze agriculture and the factors affecting agriculture in India using trend analysis, correlation, and regression techniques.
The most recent data also reveal that India’s rice exports surged by 44.61 percent, amounting to $1.37 billion in January 2025 compared to $0.95 billion in January 2024, marking it as a key growth contributor in the country’s export portfolio, reflecting the strength of the agricultural sector. Similarly, soybean exports have reached record levels during this period.
