Understanding the future of Agricultural Business in India
India is developing at a fast pace, and a bulk of credit for its development goes to the agriculture sector. While agriculture in India is the source of revenue for the masses, it provides employment to a bulk of people as well. Hence, it would not be wise to underestimate this sector. Abiding by the stats, Agriculture business is contributing around 15-20% to the GDP of the country. At present, India is driving essential and appropriate interventions at Industry, individual farmer, and institution level for its steady manifestation.
Strengthening Agriculture Business in India
The increase in the population, average income, and globalization effects increase the demand for quality, quantity, variety of food, and nutritious food. No doubt, India is blessed with huge arable land having nearly 15 agro-climatic zones. Moreover, different lands face different weather conditions and soil types, which make them suitable for the growth of a variety of crops. A top-notch manufacturer of milk, pulses, spices, tea, jute, and cashew, India makes sure to set up agriculture companies to activate essential agriculture services.
Several startups in the agriculture segment founded by extremely educated young ones explain that they are competent enough to recognize investment potentials and efforts within this sector. However, the growing effects of technology are surely going to benefit the agriculture domain.The constraints in agriculture business make productivity as well as returns complicated; there is still an unexploited potential in India’s agriculture sector.
Steps from the Government
Now let us find out the support that the Government of India has provided to agricultural sector
1. Beneficial weather and soil conditions
2. Unexploited opportunities
3. High demand for food
4. Several fiscal incentives
5. Accessibility of economical credit facilities
6. Production infrastructure
7. Marketing and import/export promotion, thereby attracting big companies, entrepreneurial ventures and start-ups
As obvious, the Government is working hard to solve the issues of the farmers by constituting a panel, and these steps make up for a recommended way to twofold the farmer’s income by the year 2022.
Export-oriented Agriculture Business
The exports from the agriculture domain grew by 17.34% in 2020-21 to touch 41.25 billion USD. Evidently, agricultural exports can play an effective role in increasing the income of the farmers. As per the food and Consumer Affairs Minister Piyush Goyal, India should acquire its place in the top-5 agri- exporting nations to make the agricultural business export-oriented.
He also pushed the ‘One District-One Product’ initiative to cite 106 products from 103 districts that are export worthy and can promote the nation’s local goes global call. Just to cite a few examples, while USA is importing red rice from India, UK is importing Jackfruits from Tripura. These and many more examples altogether are making the agriculture field immensely export-oriented.
