Synopsis
India has transformed into a food-surplus powerhouse, driven by agricultural growth, as detailed in a new report. This shift significantly boosts export performance and highlights the farm sector's resilience. Projections indicate substantial growth in food production and exports, paving the way for enhanced economic development.Key Takeaways
- India has become a food-surplus nation.
- Expected foodgrain production growth of 2%.
- Projected food processing sector growth to $2,150 billion by 2047.
- Rice exports increased by 44.61% in January 2025.
- Opportunities for economic development through agriculture.
New Delhi, Feb 19 (NationPress) India has transitioned from being a food-scarce nation to becoming a food-surplus leader, showcasing a strong export performance driven by robust agricultural growth. This reflects the resilience of the farm sector and its crucial role in the global agricultural trade landscape, as highlighted in a recent report.
The report, titled 'India's Agricultural Transformation: From Food Scarcity to Surplus', is scheduled for release by the apex business chamber PHDCCI on Friday. It anticipates a 2% growth in the country's foodgrain production, reaching approximately 3,357 lakh tonnes for the year 2024-25.
According to the business chamber’s estimates, there is expected to be a remarkable expansion in exports of agricultural and processed food products, with projections of reaching $125 billion by FY2030, $250 billion by FY2035, $450 billion by FY2040, and $700 billion by FY2047.
Furthermore, the PHDCCI study forecasts that India’s food processing sector is likely to grow to $700 billion by FY2030, $1,100 billion by FY2035, $1,500 billion by FY2040, $1,900 billion by FY2045, and $2,150 billion by FY2047.
The report notes that while certain states demonstrate exceptional agricultural performance, their overall economic growth remains limited. This presents an opportunity to better harness agricultural achievements to stimulate broader economic development. By enhancing connections between agriculture and other sectors, these states can explore new growth pathways, leading to more inclusive and balanced economic advancement.
Overall, the analysis suggests that factors such as electricity availability, warehousing capacity, and gross irrigated area play significant roles in influencing foodgrain production in India.
Interestingly, rainfall does not show a statistically significant effect, which challenges the conventional wisdom of India's heavy dependence on the monsoon for agriculture. The report suggests a moderate correlation, indicating that a more resilient agricultural system has emerged in the country.
PHDCCI stated that the aim of the study was to analyze agriculture and its influencing factors in India using trend analysis, correlation, and regression techniques.
Recent statistics reveal that India’s rice exports surged by an impressive 44.61% to $1.37 billion in January 2025 compared to $0.95 billion in January 2024, marking it as a major contributor to the country’s overseas merchandise exports. Similarly, soybean exports have also reached record highs during the same period.
