The economy of India lies in the agriculture sector of India. Employment factor in rural area depends on agriculture sector. Agriculture sector in India has such enormous power which can affect world economy.
This presentation contains overview, analysis and growth drivers of agriculture industry in India. It gives you the information regarding problems faced by Indian agriculture sector.
2. MARKET OVERVIEW
• Importance in Indian economy-
• 58% of rural household depend on agriculture.
• Largest contributor to GDP.
• 4th largest export principal commodity.
• India’s important for the world in agriculture sector-
• 1st in production, consumption and export in spices and spice products.
• 2nd fruit producer in the world.
• 3rd in farm and agriculture output.
• Segments of agriculture industry-
• Food industry
• Fisheries , meat, poultry.
• Food grain
• Pesticides and fertilizers
• Flower industry
3. MARKET OVERVIEW
• History of agriculture-
• Indus valley civilization (9000 BC)
• Reform in agriculture sector of India after independence
• Structural change in Indian agriculture (1970-2011)
• Green revolution- Mr. MS Swaminathan
• Current market size and expected growth rate-
• Agriculture GDP - 4.1% in 2016-17.
• Food grain production- 271.98 MT
• Production of pulses- 20 MT
• Grapes export to Europe and China- Expected increase by 20%
• Groundnut export- Expected to cross 7,00,000 tonnes
• Spice export increased by 9% in volume and 5% in value
4. PESTEL ANALYSIS OF AGRICULTURE INDUSTRY
• Political analysis-
• Rashtriya Vikas Krushi Yojana
• National research Centre for women in agriculture, Bhubaneshwar, Orissa
• “ Per drop, More crop” project by NABARD
• Fasal Bima Yojana
• Economic analysis-
• Impact of GST
• 24% increase in budget for rural, agriculture and allied sector
• Short crop loan up to Rs 3,00,000 with interest rate of 7%
• Socio-cultural analysis-
• 16% world population on 2.4% of land resource.
• Farmer suicides
• Use of agriculture land for non agriculture purpose
5. PESTELANALYSIS OF AGRICULTURE INDUSTRY
• Technological analysis-
• Farm machining training and testing institutes
• Kisan call Center for technical support and farming advice.
• E- chaupal by ITC
• Bilateral agreement with Israel and Brazil with respect to technological
advancement in agriculture.
• Legal analysis-
• Destructive insects and pest act, 1994 to restrict disease from other country.
• Fertilizer control order under clause 111 of the Essential Commodities Act,
1955 for price control of Ammonium sulphate, urea and calcium
ammonium nitrate.
• Fertilizer movement control order, 1973 to restrict unauthorized inter-state
movement of fertilizers.
6. PESTEL ANALYSIS OF AGRICULTURE INDUSTRY
• Environmental analysis-
• Dependence on Monsoon.
• Only 40% of irrigated farmland.
7. SWOT ANALYSIS OF AGRICULTURE
• Strength-
• 2nd largest cultivable area
• Among top three countries in production of cereals, milk, eggs, fruits,
vegetables, cotton, tea, sugarcane etc.
• Manpower
• 3rd largest reservoir of engineers.
• Abundance of natural resources and diversity in foods, fruits etc.
• Weakness-
• Lack of modern technology and agriculture practices.
• Dependence on monsoon.
• Poor infrastructure facility.
• Low productivity
8. SWOT ANALYSIS OF AGRICULTURE
• Threats-
• Volatility in crude oil prices all over the world.
• High population rate.
• Dependence on monsoon.
• Opportunities-
• Increase in FDI investment.
• Vast forest area and diverse wildlife.
• Huge agriculture resources like fishing, plantation crops and livestock.
• Advancement in IT sector.
9. GROWTH DRIVERS OF AGRICULTURE SECTOR
• Growth drivers of present Indian agriculture sector-
• Green revolution- Increase in high yielding variety of seeds and fertilizers.
• Organic farming- use of synthetic fertilizers and pesticides.
• Improvement in infrastructure- major and minor canal, rain water harvesting
and dams.
• 6,50,000 organic producers.
• Expected future growth drivers-
• GST impact-
• 5% tax on hand pump and its part. (Previous 12%)
• 12% tax on tractor. (Previous 12.5%)
• 5% tax on chemical fertilizer ( Previous 12%)
• 0% tax on seed and organic compost.
• Overall low logistic cost and hassle free supply chain.
• National Agriculture Market (NAM)
10. FACTORS AFFECTING AGRICULTURE INDUSTRY
• Dependence on Monsoon.
• Waste of agriculture products.
• Lack of modern practices and technology.
• Poor transportation.
• Poor logistic.
• Lack of interest in agriculture in student community.
• Farmers’ suicide.
11. FUTURE OUTLOOK
Agriculture sector is expected to gain better momentum in next few
years. Government focus on micro irrigation, FDI in agriculture sector, GST
implementation etc. will have positive impact on Indian agriculture. Use of
genetically modified crops will have great positive effect on Indian agriculture.
But, We should focus on farmers too. Farmer’s income safety is still
an issue. For long term improvement in India’s agriculture sector, student’s
lack of interest in agriculture should be improved.