India's agriculture sector shows record growth and resilience: Economic Survey

Economic Survey 2025-26 highlights the sustained resilience and steady growth of India's agriculture sector, which is increasingly driven by allied activities like livestock and fisheries

economic-survey-advisor Chief Economic Advisor V Anantha Nageswaran | Sanjay Ahlawat

India’s agriculture and allied sectors have demonstrated sustained resilience and steady growth, emerging as a central pillar of rural livelihoods and inclusive economic expansion, according to the Economic Survey 2025–26 tabled in Parliament.

The survey notes that agriculture and allied activities contribute nearly one-fifth of national income at current prices and remain critical given their large share in employment. Over the past five years, the sector recorded an average annual growth rate of 4.4 per cent at constant prices, while decadal growth between FY16 and FY25 stood at 4.45 per cent, the highest compared with previous decades.

Growth has increasingly been driven by allied sectors. Livestock recorded a compound annual growth rate of 12.77 per cent at current prices between FY15 and FY24, with gross value added rising by nearly 195 per cent. Fisheries and aquaculture also expanded strongly, with fish production increasing by over 140 per cent between 2014 and 2025. These segments have emerged as key contributors to farm incomes and rural employment diversification.

Foodgrain production reached a record 3,577.3 lakh metric tonnes in 2024–25, an increase of 254.3 lakh tonnes over the previous year, led by higher output of rice, wheat, maize and coarse cereals. At the same time, the survey highlights the growing importance of horticulture, which now accounts for around 33 per cent of agricultural gross value added. Horticulture production rose from 280.70 million tonnes in 2013–14 to 367.72 million tonnes in 2024–25, with fruits, vegetables and other horticultural crops showing broad-based expansion.

The survey reiterates the government’s objective of doubling farmers’ incomes through productivity enhancement and policy and institutional interventions. Key initiatives include expanded irrigation coverage, improved seed quality, soil health management, farm mechanisation, crop insurance and market access reforms. Gross irrigated area as a share of gross cropped area increased from 41.7 per cent in 2001–02 to 55.8 per cent in 2022–23, while over 25.55 crore Soil Health Cards have been issued to promote balanced nutrient use.

Efforts to reduce import dependence have also gathered momentum. Domestic edible oil availability increased to 121.75 lakh tonnes in 2023–24, reducing reliance on imported edible oil. A mission-mode push for self-sufficiency in pulses was approved in October 2025 to raise productivity and stabilise supplies.

Crop insurance coverage expanded sharply, with 4.19 crore farmers insured in 2024–25, a 32 per cent increase over FY23. Income support through direct transfers and higher minimum support prices continued to provide stability amid weather and market risks.