India’s agriculture sector grew at 4.6% in the last financial year, according to the Economic Survey Report 2025-26. The growth came primarily from livestock and fisheries rather than crop production, continuing a decade-long pattern that raises questions about the future of traditional farming.
The sector recorded 3.6% growth in the first quarter of FY26, up from 2.7% in the same period last year. A favourable monsoon supported the performance. However, the growth remained below the long-term average of 4.5%.
What’s Driving Agriculture Growth
The decade from 2015-16 to 2024-25 emerged as the strongest for agriculture since 1975, with average annual growth of 4.45%, according to the survey. This performance rested largely on livestock (7.1%) and fisheries (8.8%). The crop sector grew at just 3.5% and showed no sustained upward trend.
In the survey, the government attributed the crop sector’s weak performance to structural issues rather than weather shocks. The sector now depends heavily on allied activities like livestock and fisheries to drive overall expansion.
The livestock sector’s gross value added increased by nearly 195% between FY15 and FY24, registering a compound annual growth rate of 12.77% at current prices. Fish production increased by more than 140% during 2014-2025, compared to the increase from 2004-14, according to the survey.
Dr Tariq Ramzan, agriculture expert and field supervisor in Jammu & Kashmir’s Agriculture Department, highlighted the key difference. “Livestock and fisheries give farmers certainty. If they invest โน10,000, they get profits within a fixed time. Crop farming has no such guarantee. Weather always creates uncertainty, irregular rains, droughts, heat waves destroy crops.”
The Horticulture sector accounts for around 33% of agricultural gross value added. Production reached 362.08 metric tonnes in 2024-25, surpassing estimated food grain production of 329.68 metric tonnes. According to the survey the shift underscores a gradual diversification towards high-value crops.
India’s foodgrain production reached 3,577.3 lakh metric tonnes in agriculture year 2024-25, an increase of 254.3 lakh metric tonnes over the previous year, according to the Department of Agriculture and Farmers Welfare. Higher output of rice, wheat, maize and coarse cereals drove the growth.
How Crops Fall Behind
Despite overall expansion, productivity remains a concern. Yields across several crops including cereals, maize, soybeans and pulses continue to trail global averages. Many major rice-producing states like West Bengal, Uttar Pradesh, Telangana, Odisha, Andhra Pradesh and Tamil Nadu had yields per hectare lower than the national average.
The Commission for Agriculture Costs and Prices identified unseasonal rains, heat stress and dry spells during critical crop stages as major causes of low yields.
Madhya Pradesh and Gujarat lead in pulse production with higher yields than other states. Their advantage stems from agro-climatic conditions suited to major pulse crops and higher seed replacement rates.
Feed and fodder shortages threaten to limit future livestock growth. The area under fodder crops remained at 9.13 million hectares, just 4.61% of the gross cropped area.
The ICAR-Indian Grassland and Fodder Research Institute estimates demand-supply gaps of 11-32 % in green fodder, 23 % in dry fodder, and 28-40 % in concentrates. These shortages have increased input costs and affected livestock nutrition.
Access to irrigation remains uneven too. The gross irrigated area as a share of gross cropped area increased from 41.7 % in 2001-02 to 55.8 % in 2022-23.
The National Food Security and Nutrition Mission promotes area expansion and productivity enhancement for rice, wheat, pulses, coarse cereals and commercial crops. The National Mission on Edible Oils aims to achieve self-sufficiency in oilseed production, targeting nearly 70 million tonnes by 2030-31.
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