Agriculture & Food Processing
India is one of the major players in the agriculture sector worldwide and it is the primary source of livelihood for ~55% of India’s population and has the world's largest cattle herd (buffaloes), the largest area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world.
It is the second-largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, cotton, and sugar. The agriculture sector in India holds the record for second-largest agricultural land in the world generating employment for about half of the country’s population.
India's agriculture and food processing sector in 2024-2025 reflects the nation’s commitment to modernizing its farming practices while addressing global and domestic challenges. Agriculture remains integral to India's economy, providing livelihoods to nearly half of the population and contributing significantly to the country’s GDP. The sector’s performance is supported by favorable government policies, technological advancements, and an expanding global demand for Indian agricultural products.
In 2024-2025, India’s foodgrain production continues to rise, driven by the adoption of high-yielding seed varieties, increased irrigation coverage, and mechanization. Staple crops like rice and wheat maintain robust yields, supported by flagship programs like the Pradhan Mantri Krishi Sinchai Yojana and the National Food Security Mission. Pulse production is also expanding, with support through higher minimum support prices and incentives for growing less water-intensive crops. India remains the world's largest producer of rice and second-largest in wheat and sugar, which collectively contribute to its food security and export earnings.
The food processing industry is emerging as a pivotal segment, bridging the gap between farm production and consumer markets. Contributing over 12% to India’s GDP in manufacturing, the sector benefits from policies like the Pradhan Mantri Kisan Sampada Yojana, which offers financial assistance for setting up cold chains, mega food parks, and food processing units. The government’s emphasis on reducing post-harvest losses, improving storage infrastructure, and boosting value addition has led to significant investments in food processing clusters.
India’s agricultural exports reached a record $53 billion in 2023, and further growth is anticipated. Staples like basmati rice, non-basmati rice, spices, and marine products dominate export baskets, with top destinations being the Gulf countries, Southeast Asia, the USA, and the European Union. Diversification into processed foods, organic produce, and niche products like medicinal plants and essential oils is contributing to expanding market access.
India’s agricultural trade in 2024-2025 reflects both strategic growth and evolving partnerships across various global regions, further solidifying its position as a key player in the global food trade.
India’s exports to the Asia-Pacific region remain robust, with rice, sugar, and spices leading the charge. In FY24, India’s non-basmati rice exports reached approximately $6.3 billion, with key destinations like Bangladesh, Vietnam, and Indonesia contributing heavily to this growth. The increasing demand for lentils and pulses in Southeast Asia further boosted trade, aided by favorable logistics and competitive pricing.
The Gulf region continues to be one of the largest importers of Indian agricultural goods, with basmati rice exports hitting $3.97 billion in 2023, driven by demand in the UAE, Saudi Arabia, and Iran. This trade is further supported by bilateral agreements, such as the Comprehensive Economic Partnership Agreement (CEPA) with the UAE, which has enabled increased exports of high-value products like processed foods and fresh fruits.
In Europe, India’s exports focused on organic produce, processed foods, and marine products, with exports growing significantly in FY24. The rise of organic farming incentives under APEDA and a focus on quality standards have ensured that India’s products maintain competitiveness. Meanwhile, spice exports surged to $4.46 billion in 2024, marking a milestone driven by high global demand, especially for turmeric, pepper, and cardamom.
In the Americas, India’s agricultural trade focuses on high-value items such as spices, seafood, and fruits. The United States remains a major market for turmeric, while Canada has seen increased imports of organic products. India’s collaboration in sustainable farming techniques has expanded, fostering stronger agricultural technology partnerships with countries in both North and South America.
Meanwhile, India plays a critical role in food security for Africa, exporting rice, sugar, and pulses to drought-stricken regions like Ethiopia and Sudan. The CIS region, led by Russia, also imports significant amounts of Indian agricultural goods, including sugar and tea, while India has been fostering agricultural development projects in Central Asia.
Additionally, India imports palm oil primarily from Malaysia and Indonesia, as well as lentils from countries like Canada and Australia, to meet domestic consumption needs. India’s agricultural trade in 2024 is underpinned by initiatives such as the Agricultural Export Policy, which aims to diversify export markets and improve global competitiveness. The continued focus on creating storage infrastructure, reducing post-harvest losses, and strengthening export linkages is likely to help India achieve its long-term goals in agricultural exports
The government’s Vision 2030 for agriculture and food processing includes ambitious goals to double farmer incomes, expand export markets, and integrate sustainability into the sector. This vision aligns with global trends toward sustainable agriculture and food security, ensuring that India remains a key player in feeding its population and contributing to international markets.