India’s agriculture sector records highest growth in history, surpasses China

India’s agriculture sector achieved its highest growth rate since independence during the past decade, outpacing China and defying global economic uncertainties including the Covid-19 pandemic.

A report released in October by NITI Aayog member Ramesh Chand reveals that agriculture growth during 2015-24 stood at 4.42 percent annually. This surpassed China’s agricultural growth of 4.10 percent during the same period.

The report, titled “Agriculture in meeting aspirations of rising India,” shows the sector did not record a single year of negative growth between 2015-16 and 2024-25. This unprecedented performance occurred despite the Covid pandemic, which severely impacted other economic sectors.

Historic growth momentum

The period from 2014-15 to 2024-25 represents the strongest agricultural expansion in India’s history. Growth in Gross Value Added from agriculture and allied activities reached 4.45 percent annually during 2015-16 to 2024-25.

India’s agriculture sector has never achieved this level of growth in any decade since 1950-51, according to the report. The acceleration began after 2004-05 and intensified further after 2014-15.

Between 2014-15 and 2023-24, income of agricultural producers grew at 10.11 percent annually. This outpaced growth in manufacturing and the overall economy. Farmers’ income increased by 126 percent over ten years, while producers’ income rose by 108 percent between 2015-16 and 2022-23.

Global comparison

Data from the Food and Agriculture Organization of the United Nations shows India’s agriculture sector achieved an average growth rate of 3 percent during 2006-2015. This matched the global agriculture growth rate during that period.

In the following decade from 2015 to 2024, world agriculture growth decelerated. India bucked this trend with accelerated growth of 4.42 percent. China’s agricultural growth rate slowed to 4.1 percent during the same period.

The report states this growth rate is not only historically highest for India but also the highest among major agricultural countries in the last decade.

Structural transformation

The agricultural expansion has been demand-led and increasingly diversified toward high-value crops and allied sectors. This reflects a structural transformation within the sector.

Agriculture demonstrated enhanced stability and resilience despite climatic uncertainties and global economic disruptions. The sector absorbed a rapidly expanding workforce, particularly women workers, highlighting its continuing socio-economic importance.

Chand noted that agriculture contributes 19.73 percent of national income at current prices. The sector engages 46 percent of India’s total workforce, making it central to the country’s economic development.

Production gains

Dairy production increased from 146 million tonnes in 2014-15 to over 239 million tonnes in 2023-24. India is now the world’s largest milk producer.

Fruit and vegetable production rose from 280.7 million tonnes in 2013-14 to 367.72 million tonnes in 2023-24. The country is also the biggest exporter of rice globally.

Terms of trade for agriculture improved by 41.3 percentage points between 2008-09 and 2020-21. The Wholesale Price Index for agriculture almost doubled between 2011-12 and 2024-25. Wholesale agriculture prices gained 2.4 percent per year in real terms for 13 years.

Financial support expansion

Coverage under the Pradhan Mantri Fasal Bima Yojana increased from 3.4 crore farmers in 2018-19 to 4.1 crore farmers in 2024-25. This crop insurance scheme provides financial protection to farmers against crop losses.

Agricultural financing rose significantly from 29.4 percent of output in 2013-14 to 41.7 percent in 2023-24. This expansion in credit availability helped farmers invest in better inputs and technology.

The electronic National Agriculture Market platform has integrated 1,522 mandis by mid-2025. This digital initiative connects agricultural markets across the country, allowing farmers to access better prices.

Vision for 2047

Chand emphasizes that India’s vision of “Viksit Bharat” or developed India by 2047 depends on two main pillars. These are raising per capita income to developed economy levels and ensuring inclusive development for all citizens.

Agriculture must play a central role in this national transformation given its significant contribution to income and employment. The sector’s strong performance over the past decade provides a foundation for continued progress.

The report suggests that sustained agricultural growth will be pivotal in realizing the vision of a developed India by 2047. The sector’s ability to maintain high growth rates while absorbing more workers demonstrates its potential to drive inclusive economic development.

The agricultural sector’s resilience during the Covid pandemic proved its importance as an economic stabilizer. While non-agricultural sectors contracted, agriculture continued expanding and supporting rural livelihoods during the crisis.

These trends indicate agriculture will remain crucial for India’s economic strategy in coming decades. The sector’s transformation toward high-value products and improved farmer incomes suggests a sustainable growth path ahead.