India’s Agricultural Transformation (2014-2026), Key Reforms, Growth

Agriculture remains the backbone of India’s rural economy, providing livelihood to nearly half of the country’s population and contributing around 18 percent to the Gross Value Added (GVA). Over the last decade, India has witnessed significant agricultural transformation through higher production, improved irrigation, expanded credit and insurance coverage, stronger MSP support, digital innovations, and growth of allied sectors. These reforms have gradually shifted Indian agriculture from a subsistence-oriented system towards a more productive, resilient, technology-driven, and farmer-centric sector.

Growth of Agriculture and Allied Sectors

The agriculture and allied sector recorded substantial growth during the last decade.

• The Gross Value Added (GVA) of agriculture and allied activities increased from ₹20.9 lakh crore in 2014-15 to ₹48.7 lakh crore in 2023-24, registering a Compound Annual Growth Rate (CAGR) of 8.83 percent.
• The GVA of the crop sector increased from ₹12.93 lakh crore in 2014-15 to ₹26.53 lakh crore in 2023-24.
• Public investment in agriculture increased significantly, with budgetary allocation for the Department of Agriculture and Farmers Welfare rising from ₹27,663 crore in 2013-14 to ₹1,40,528.78 crore in 2026-27.

Rising Agricultural Production and Food Security

Improving food security while enhancing farmer incomes remained a key objective of agricultural policy.

Expansion of Foodgrain Production

• Total foodgrain production increased from 265.05 million tonnes in 2013-14 to 357.73 million tonnes in 2024-25, strengthening national food security.
• Rice production reached a record 150.18 million tonnes, making India the world’s largest rice producer.
• Wheat production increased to 117.94 million tonnes, while maize production nearly doubled to 43.40 million tonnes.

These achievements were supported by the National Food Security and Nutrition Mission, which promoted improved seeds, scientific farming practices, mechanisation, and technology adoption.

Progress in Oilseeds Production

• Oilseed production increased from 27.51 million tonnes in 2014-15 to 42.99 million tonnes in 2024-25.
• Expansion in cultivated area and improvements in productivity contributed to reducing edible oil import dependence from 63.2 percent to 56.25 percent.

Growth of Horticulture

• Horticulture production increased from 280.70 million tonnes to 369.05 million tonnes.
• The sector contributed nearly 37 percent of Gross Value Output within the crop sector, reflecting increasing diversification towards high-value crops such as fruits, vegetables, spices, and flowers.

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Agricultural Exports and Global Integration

India’s agricultural exports have expanded significantly due to higher production, value addition, and improved competitiveness.

• Agricultural exports increased from USD 37.29 billion in 2013-14 to USD 51.1 billion in 2024-25.
• India emerged as a leading exporter of rice, spices, marine products, cotton, and sugar.
• The export basket has gradually shifted from primary commodities towards higher-value processed products.
• • For example: The share of processed food exports increased from 13.7 percent to 20.4 percent of total agricultural exports, indicating rising value addition.
• Seafood exports increased from USD 3.64 billion to USD 7.52 billion and now reach more than 130 countries worldwide.

Growth of Allied Sectors

The growth of allied sectors such as livestock, dairy, fisheries, beekeeping, and bio-energy has played an important role in diversifying rural livelihoods, reducing dependence on crop income, and creating additional sources of employment and income for farmers.

Livestock and Dairy

• The livestock sector emerged as one of the fastest-growing components of agriculture.
• Livestock GVA increased from ₹5.10 lakh crore to ₹15.06 lakh crore, registering a CAGR of 12.77 percent.
• India remains the world’s largest milk producer, accounting for nearly one-fourth of global milk production.
• Milk production increased from 146.31 million tonnes to 247.87 million tonnes between 2014-15 and 2024-25.
• Per capita milk availability reached 485 grams per day, significantly above the global average of 328 grams.
• India also became the second-largest producer of eggs and the fourth-largest producer of meat globally.

Fisheries

• The fisheries sector recorded a CAGR of 8.74 percent.
• Fish production increased from 9.58 million tonnes in 2013-14 to 19.78 million tonnes in 2024-25.
• Inland fisheries expanded by 147 percent during the period, becoming the primary driver of growth.

Beekeeping and Bio-Energy

• The National Beekeeping and Honey Mission significantly expanded honey production and exports.
• Honey production increased from 0.081 million tonnes to 0.152 million tonnes, while exports grew by 240 percent.
• The Ethanol Blended Petrol Programme emerged as a major avenue for agricultural diversification.
  • Ethanol procurement increased from 38 crore litres in 2013-14 to 904 crore litres in 2024-25.
• Sugar mills earned over ₹1.29 lakh crore through ethanol sales, while investments exceeding ₹42,000 crore were mobilized in the sector.

Food Processing: Bridging Agriculture and Industry

Food processing emerged as an important bridge between agriculture and industry.

• Food processing GVA increased from ₹1.34 lakh crore in 2014-15 to ₹2.24 lakh crore in 2023-24.
• The sector contributes 12.83 percent of organized manufacturing employment.

• The Production Linked Incentive Scheme for Food Processing Industries (PLISFPI) approved 165 applications across 274 project locations, generating investments worth ₹9,207 crore.
• The PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme supported over 4.04 lakh applications and facilitated loans worth ₹14,190 crore.
• The Pradhan Mantri Kisan Sampada Yojana approved 1,607 projects, generated employment for 7.25 lakh people, and benefited over 50.27 lakh farmers.

Evolution of Agricultural Policy Architecture

Agricultural reforms gradually evolved from production enhancement towards a broader framework encompassing productivity, risk management, farmer welfare, infrastructure development, and sustainability.

Improving Productivity and Resource Efficiency

The initial phase focused on improving the efficient use of agricultural resources.

• The Pradhan Mantri Krishi Sinchayee Yojana expanded irrigation coverage and promoted micro-irrigation, thereby improving water-use efficiency.
  • Irrigation coverage increased from 49.3 percent to 55 percent of gross cropped area between FY16 and FY21.
• The Soil Health Card Scheme institutionalised scientific nutrient management by providing soil-specific recommendations to farmers.
  • Nearly 26 crore Soil Health Cards were issued by March 2026.
  • More than 70,000 Krishi Sakhis were trained to provide soil health advisory services.
• The Sub-Mission on Seeds and Planting Materials improved the availability of quality seeds and strengthened crop productivity.
• The Rashtriya Gokul Mission promoted indigenous cattle breeds and enhanced dairy productivity through scientific breeding programmes.

Strengthening Risk Management and Market Access

Subsequent reforms focused on reducing production risks and improving market connectivity.

• The Pradhan Mantri Fasal Bima Yojana (PMFBY) expanded affordable crop insurance coverage against natural calamities, pest attacks, and crop losses.
  • More than 92.46 crore farmer applications were insured under PMFBY.
  • Claims worth ₹1.96 lakh crore were disbursed to approximately 24.31 crore farmers.
• The National Agriculture Market (e-NAM) integrated agricultural mandis through a digital trading platform, improving market access and transparent price discovery.
  • By March 2026, 1,656 mandis, 1.80 crore farmers, and 4,724 FPOs were connected to the platform.
• The MSP reforms introduced in 2018 ensured that Minimum Support Price were fixed at least 50 percent above the cost of production, thereby strengthening price assurance for farmers.
  • Total procurement increased from 698.7 million tonnes during 2004-2014 to 1,229.2 million tonnes during 2014-2026, representing a growth of approximately 76 percent.
  • The total MSP value reached ₹26.32 lakh crore during 2014-2026, which was nearly 3.5 times higher than the ₹7.41 lakh crore recorded during the previous decade.
  • Among Kharif crops, Ragi recorded the highest MSP growth of 236 percent, followed by Nigerseed at 179 percent and Hybrid Jowar at 163 percent.
  • Among Rabi and commercial crops, Jute recorded MSP growth of 147 percent, while Masur registered an increase of 128 percent.

These trends indicate sustained efforts to provide remunerative prices and reduce income uncertainty for farmers.

Expanding Income Support and Social Security

The policy focus gradually shifted towards strengthening farmers’ financial security.

• PM-KISAN introduced direct income support through annual transfers of ₹6,000 to eligible farmer families.
  • More than ₹4.28 lakh crore was transferred directly to over 9.44 crore farmer families.
  • More than one-fourth of beneficiaries were women.
• The Kisan Credit Card scheme expanded access to affordable institutional credit for agriculture and allied activities.
  • The number of operative KCC accounts increased from 6.46 crore in 2013-14 to 7.81 crore in 2024-25.
  • Outstanding credit under KCC increased from ₹4.26 lakh crore in March 2014 to ₹10.20 lakh crore in March 2025.
• The Pradhan Mantri Kisan Maandhan Yojana established a pension framework for small and marginal farmers, providing social security after the age of sixty.
  • The scheme provides a monthly pension of ₹3,000 after the age of sixty.
  • Around 24.95 lakh farmers were enrolled by February 2026.

Building Infrastructure and Institutions

The reform agenda increasingly emphasised strengthening agricultural infrastructure and farmer institutions.

• The Agriculture Infrastructure Fund promoted investment in warehousing, storage, logistics, and post-harvest management.
  • By March 2026, loans worth ₹84,202 crore had been sanctioned for 1.68 lakh projects, mobilizing investments worth ₹1.33 lakh crore.
• The Pradhan Mantri Kisan Samriddhi Kendras (PMKSK) established approximately 1.8 lakh centres providing inputs, extension services, and advisory support.
• The Mega Food Park Scheme expanded from only two parks in 2014 to forty-one parks in 2025, strengthening storage, logistics, and processing infrastructure.
• The Pradhan Mantri Kisan Sampada Yojana strengthened food processing infrastructure and value addition.
• The Ministry of Cooperation, established in 2021, provided focused support for cooperative reforms.
• Farmer Producer Organisations strengthened collective bargaining power and improved market participation.

Promoting Diversification and Self-Reliance

Recent reforms have focused on reducing import dependence and improving sustainability.

• The National Mission on Edible Oils–Oil Palm and National Mission on Edible Oils–Oilseeds promoted domestic edible oil production.
• The Mission for Aatmanirbharta in Pulses sought to strengthen domestic pulse production and reduce imports.
• The Pradhan Mantri Dhan-Dhaanya Krishi Yojana targeted agricultural development in low-performing districts.
• The PM-KUSUM scheme promoted renewable energy adoption through solar-powered agriculture.

Sustainable Agriculture and Climate Resilience

The agricultural sector increasingly adopted sustainability-oriented approaches to address climate change, soil degradation, and resource stress.

• The Paramparagat Krishi Vikas Yojana (PKVY) promoted organic farming through cluster-based approaches.
  • By December 2025, the programme had covered 18.84 lakh hectares and benefited 33.93 lakh farmers.
• The Mission Organic Value Chain Development for North Eastern Region supported 2.70 lakh farmers across 2.36 lakh hectares.
• The National Mission on Natural Farming covered approximately 9 lakh hectares and registered 19 lakh farmers under chemical-free farming practices.
• Climate adaptation efforts were strengthened through the release of 2,996 climate-resilient crop varieties between 2014 and 2025.
• Climate-resilient village programmes covered 448 villages and benefited approximately 8.5 lakh farmers.
• Integrated Farming Systems expanded to 1.04 lakh farm households across 79 districts, increasing farm incomes to between ₹1.5 lakh and ₹3.6 lakh per hectare annually.
• The PM-KUSUM scheme promoted solar-powered agriculture and renewable energy adoption.
  • More than 21.77 lakh farmers benefited under the scheme, while over 10 lakh standalone solar pumps and 13 lakh solarized grid-connected pumps were installed.

Digital Agriculture and Technology Adoption

Digital transformation has become an important driver of agricultural modernization.

• Under the Digital Agriculture Mission, 7.63 crore Farmer IDs were created and 23.5 crore crop plots were digitized by February 2026.
• The National Pest Surveillance System covers 66 crops and monitors more than 432 pest species through real-time surveillance and digital advisories.
• The Namo Drone Didi initiative promotes drone-based agricultural services through women Self Help Groups, combining technological innovation with women’s empowerment.
• Kisan e-Mitra has handled more than 95 lakh farmer queries in eleven regional languages, improving access to information and government services.

These initiatives have improved transparency, service delivery, precision farming, and risk management.