GK Chronicle GK Chronicle

Indian Economy / Agriculture Sector

Agriculture in Indian Economy


Agriculture plays an important role in Indian economy, generating employment of around 50% to the country's workforce and contributing a substantial part in its Gross Domestic Product (GDP). The share of agriculture in India's GDP is around 18%. In Indian agriculture, we mainly find disguised unemployment, which is nothing but a kind of unemployment in which some people are seemed to be employed but actually they are not.



Agriculture and Allied Sectors

Contribution of agriculture in Indian economy is crucial because it provides self sufficiency in food grain production and reduces dependency on other countries for basic food needs of its people, particularly during natural calamities, political conflicts or global food crises. There exists a total land area of 328 million hectares in the Indian geographical area. The net cropland area of India ranges 175-180 million hectares and stands first in the world followed by USA, China and Russia in that order.


  • Gross Area Sown (GAS) is Net Area Sown (NAS) plus Area sown more than once. Cropping intensity is nothing but the ratio of GAS to NAS. The present cropping intensity of India is 1.36 or 136%.

  • In India, water for agricultural requirements comes from Monsoon (both South-West and North-East Monsoon) and Irrigation facilities. The Irrigation facilities include Canal (major irrigation facility), Tanks (minor) and Wells (minor). In India, Gross area irrigated is about 52% of Gross Area Sown.

  • Land Distribution - In India, marginal farmers (possessing land of less than 1 hectare) comprise of 60%. So, agriculture is at subsistence level in India. Small farmers (having 1-2 hectares) comprise of 20% of total farmers.

  • Production of food grains in India are around 328-329 million tonnes of which Rice is around 136 million tonnes, wheat around 113 million tonnes, Coarse Cereals around 50 million tonnes and Pulses around 25 million tonnes. In India, we grow around 9 different pulses.

  • India's food grain production got enhanced highly because of Green Revolution.

  • Oil seeds production in India is around 39 million tonnes.

  • India is the largest producer of fruits and vegetables in the world.
  • Animal Husbandry in India

    • Livestock production is integral part of agricultural sector in Indian economy. It alleviates poverty through extra household income.

    • It contributes at about 5.5% to the GDP and provides household nutritional security. It contributes around quarter percent to the total Agriculture GDP.

    • India has largest number of livestock in the world and also ranks first in buffalo population and second in both cattle and goat population in the world.

    • India ranks first in milk production (because of White Revolution). India ranks third in the world in eggs production and it is the sixth largest poultry meat producer in the world.
  • Fisheries

    • India's fish production got enhanced because of Blue Revolution.

    • Fisheries is considered to be one of the important source of livelihood for a greater section of the economically backward population particularly in coastal area.

    • About 14 million population are employed in different activities of fisheries.

    • India occupies second position in the world in fish production.
  • Forestry

    Most of the forest area is under Government control. Forestry also plays important role of agriculture in Indian economy in the form of environmental protection and for ensuring ecological balance.



Dryland Agriculture in India

Cultivation of crops that entirely depends on natural rainfall is called Dryland agriculture. Dryland areas are the areas which are not having assured irrigation facilities and receive erratic and low rainfall.


  • Dryland areas are not much suitable for water intensive crops like rice, banana, sugarcane, etc. but coarse grain crops like oilseeds, pulses, etc. can be grown in dryland soils.

  • The areas which receive less than 75cm of rain are called drylands and which receive more than 75 cm of rain are called rainfed areas.

  • Even though there is considerable development of irrigation facilities and potential availability of water in the country, at any point of time it is reckoned that near about 50% of farming area in India will remain under Dryland / Rainfed farming system.

  • The strategy followed for dryland farming is a two pronged approach, (i) Improving the soil condition by removing salinity and alkalinity and (ii) Developing new strains of drought resistance, short duration and high yielding variety crops.

  • To tackle the adverse monsoon conditions, which leads to drought, floods and extreme weather events which in turn adversely impact crops, livestock, fisheries, etc., the Central Research Institute for Dryland Agriculture (CRIDA) prepares district level Agriculture Contingency Plans in association with state level agricultural universities so that appropriate measures can be taken for that particular area.
  • Rainfed Area Development (RAD)


    • Rainfed Area Development concentrates on Integrated Farming System (IFS) for minimizing the risks linked with climatic vagaries and increasing the productivity.

    • Under Integrated Farming System, cropping system is mixed with various other activities like livestock, fishery, sericulture, horticulture, agro-forestry, apiculture, etc.

    • IFS makes the farmers to maximize their farm income as well as to mitigate the impacts of flood, drought or any other extreme weather events with the supplementary income that is made through allied activities during crop damage.