Agriculture and allied services

Agriculture is the primary source of livelihood for about 58 per cent of India’s population. Gross Value Added by agriculture, forestry and fishing is estimated at Rs 18.55 lakh crore (US$ 265.51 billion) in FY19 (PE). The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry As of August 2019, total area sown with kharif crops in India reached 92.6 million hectares. In FY19, agriculture exports were US$ 38.54 billion. India is also the largest producer, consumer and exporter of spices and spice products. According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian food processing industry has cumulatively attracted Foreign Direct Investment (FDI) equity inflow of about US$ 9.41 billion between April 2000 and June 2019. The Government of India has allowed 100 per cent FDI in marketing of food products and in food product e-commerce under the automatic route. The Government of India has introduced several projects to assist the agriculture sector. They are Pradhan Mantri Gram Sinchai Yojana: The scheme aims to irrigate the field of every farmer and improving water use efficiency to achieve the motto `Per Drop More Crop’. Overall the scheme ensures improved access to irrigation. Around 285 new irrigation projects will be undertaken in 2018 to provide irrigation for 18.8 million hectares of land. As per Union Budget 2019-20 the scheme has been allocated Rs 3,949.90 crore (US$ 565.16 million).

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