Allied sectors

23 May 2023

Agriculture plays a vital role in India's economy. More than half of the population depends on it and its allied sectors such as, livestock, fisheries, forestry and sericulture. According to the Economic Survey 2019-20, the share of agriculture and allied sectors in Gross Value Added (GVA) of the country at current prices is 17.8 percent for the year 2019-20. The same survey has noted that "India's agricultural sector has shown its resilience amid the adversities of COVID-19 induced lockdowns. The agriculture and allied activities clocked a growth of 3.4 percent at constant advance estimate)." prices during 2020-21(first Allied sector has a very impor income, a major promise of t and again, the government farmers' income is its bigges.

The country through the decades has witnessed many milestones in the agricultural development. This has been in the form of Green Revolution way back in 1968, followed by Blue Revolution, White Revolution, Yellow Revolution, Bio-Technology Revolution and the ICT Revolution (Information and Communication Technology). Allied sector has a very important role in doubling farmers' income, a major promise of the current government. Time and again, the government has reiterated that doubling farmers' income is its biggest priority. As recently as in January this year, addressing an event in Karnataka priority of the Narendra Modi government" it is to double the farmers' income. Adding emphasis on increasing income is a shift from India's past strategy for developing agriculture and allied sector. For decades, country's agriculture policy and programme had remained production centric. The Government has sought to affect a paradigm shift in this regard. Previously, the focus had remained primarily on increasing agriculture output.

The government has advocated a seven point strategy for it that includes: special focus on irrigation with sufficient budget, with the aim of "Per Drop, More Crop"; provision of quality seeds and nutrients based on soil health of each field; large investments in Warehousing and Cold Chains to prevent post harvest crop losses; promotion of value addition through food processing; creation of a National Farm Market, removing distortions and e-platform across 585 Stations; introduction of a New Crop Insurance Scheme to mitigate risks at affordable cost; and promotion of ancillary activities like Indian Horticulture sector share of total value of outs making very significant com poultry, beekeeping and economy. Apart from ensurim fisheries. Accordingly, it has launched various schemes and missions which are divided broadly in seven heads such as: Input Management Schemes/ Programmes/ Missions; Production Management Schemes for Higher Productivity; Output Management Schemes-Post Production; Risk Management in Agriculture; Extension Management in Agriculture; Management of Allied Activities-Generation of Additional Employment and Income; and Sustainable Agriculture Management. However, before we move on to discuss the schemes and missions the government has launched for betterment of allied sector, it is pertinent to have an idea of the status of some of the major allied sectors:


The cultivation of gardens or orchards leading to cultivation of fruit, vegetables, flowers and ornamental plants is known as horticulture. This helps in increasing the area or contributes 33 percent and productivity of farming output in agriculture sector contribution to the Indian suring nutritional security of alternate rural employment ation in farm activities, and mers. lands, bringing technological aspect in agriculture well as being a source of employment opportunities. The productivity of horticulture has increased Indian Horticulture sector contributes 33 percent share of total value of output in agriculture sector making very significant contribution to the Indian economy. Apart from ensuring nutritional security of the nation, it provides alternate rural employment opportunities, diversification in farm activities, and enhanced income to farmers. India is currently producing about 306.82 million tonnes of horticulture produce, which has surpassed the foodgrain production which is 284.83 million tonnes. India has emerged as a world leader in the production of a variety of fruits like mango and banana and is the second largest producer of fruits and vegetables. Besides, India has maintained its dominance in the production of spices, coconut and cashewnut. Among the new crops, kiwi, gherkins, kinnow, date palm and oil palm have been successfully introduced for commercial cultivation in the country.

Food Processing Sector:

This sector is involved in enhancing the shelf life of food along with making it more digestible and nutritious. As per the Ministry of Food Processing, Government of India following segments come within the food processing industry: Dairy, fruits and vegetable processing, grain processing, meat and poultry processing, fisheries, consumer foods including packaged foods, beverages and packaged drinking water. The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food sector has emerged as a high-growth and high- profit sector due to its immense potential for value addition, particularly within the food processing industry.

The Indian food processing industry accounts for 32 percent of the country's total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 8.80 and 8.39 percent of GVA in Manufacturing and Agriculture respectively, 13 percent of India's exports and 6 percent of total industrial investment. The Indian gourmet food market is currently valued at 1.3 billion USD and is growing at a Compound Annual Growth Rate (CAGR) of 20 percent. India's organic food market is projected to increase by three times by 2020.

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