Agricultural income has increased at 5.23 per cent annually over the past decade, according to the Economic Survey 2024-25 tabled in the Parliament on Friday by Union Finance Minister Nirmala Sitharaman.

India’s agricultural sector has demonstrated remarkable resilience in recent years, marked by consistent growth rates, which can be largely attributed to various government initiatives to enhance productivity, promote crop diversification, and increase farmers’ income, the survey said.

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The survey highlights that the ‘Agriculture and Allied Activities’ sector has long been the backbone of the Indian economy, playing a vital role in national income and employment.

“In recent years, the agriculture sector in India has shown robust growth, averaging 5 per cent annually from FY17 to FY23, demonstrating resilience despite challenges. In the second quarter of the 2024-25 fiscal year, the agriculture sector recorded a growth rate of 3.5 per cent. The Gross Value Added (GVA) of agriculture and related sectors improved from 24.38 per cent in FY15 to an impressive 30.23 per cent by FY23. Consistent and stable growth of agriculture at around 5 per cent, with a 20 per cent share of overall GVA in the economy, will contribute 1 per cent growth to GVA,” it said.

The survey notes that the kharif foodgrain production in 2024 is projected to reach 1,647.05 Lakh Metric Tonnes (LMT), which is an increase of 89.37 LMT compared to the previous year.

The survey states that in the Union Budget of 2018-19, the government introduced the principle of fixing MSP at a level of at least 1.5 times the weighted average cost of production for these crops.

“The government has raised the MSP on nutri cereals (Shree Anna), pulses, and oilseeds as part of these initiatives. For the fiscal year FY25, the MSP on arhar and bajra has been increased by 59 per cent and 77 per cent, respectively, over the weighted average cost of production. Moreover, the MSP on masur has risen by 89 per cent, while rapeseed has seen an impressive increase of 98 per cent,” it said.

The survey highlights that as of March 2024, the country has 7.75 crore operational Kisan Credit Card (KCC) accounts with an outstanding loan of Rs 9.81 lakh crore. As of 31 March 2024, 1.24 lakh KCCs and 44.40 lakh KCCs were issued for fisheries and animal husbandry activities, respectively.

The government has prioritised irrigation development and water conservation practices to enhance access to irrigation facilities, it said.

The survey states that the coverage of irrigation area has increased from 49.3 per cent to 55 per cent of the gross cropped area (GCA) between FY16 and FY21, while irrigation intensity has risen from 144.2 per cent to 154.5 per cent.

“Since FY16, the government has been implementing the Per Drop More Crop (PDMC) initiative, a component of the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), to promote water efficiency. From FY16 to FY25 (end of Dec. 2024), Rs 21,968.75 crore was released to states for implementation of the PDMC Scheme, and an area of 95.58 lakh hectares has been covered, which is about 104.67 per cent higher compared to the pre-PDMC period,” it said.

The survey states that to support organic farming, the government has implemented two dedicated schemes since 2015: the Paramparagat Krishi Vikas Yojana (PKVY) and the Mission Organic Value Chain Development for the North Eastern Region (MOVCDNER).

“Under PKVY, 52,289 clusters covering 14.99 lakh hectares and 25.30 lakh farmers have been mobilised. Similarly, under MOVCDNER, 434 Farmer Producer Companies have been created, covering a total area of 1.73 lakh hectares and benefiting 2.19 lakh farmers,” it said.