1. Agriculture: Still the heart of India’s Economy
Agriculture and allied activities remain central — contributing nearly one‑fifth of national income and supporting nearly 46% of India’s workforce. The sector’s stability is vital to both growth and rural livelihoods.
2. Steady Growth, But Not Without Roadblocks
Over the past five years, agriculture grew at an average of about 4.4% annually at constant prices, with a 3.5% growth rate in Q2 FY26. However, productivity gaps and climate risks continue to restrain pace.
3. Allied Activities Driving New Momentum
Livestock, fisheries and horticulture are emerging as major income engines — contributing significantly more than traditional crop cultivation. This diversification is crucial for inclusive and sustainable rural growth.
4. Horticulture Overtakes Foodgrain Output
For the first time, horticulture output surpassed foodgrain production, highlighting a structural shift toward higher‑value crops like fruits and vegetables that boost farmers’ incomes.
5. Sustainability Under Threat from Climate Change
The survey flags climate variability, rising temperatures, erratic rainfall and water scarcity as serious constraints that threaten crop yields and long‑term food security without adaptive strategies.
6. Irrigation & Technology: Tools for Resilience
Irrigation coverage has increased (55.8% of cropped area), supported by schemes like micro‑irrigation (drip/sprinkler) that improve water use efficiency — essential for productivity and climate resilience.
7. Productivity Gaps Demand Bigger Reforms
Despite growth, yields of key crops like maize, soybeans and pulses lag global averages. The survey calls for fertiliser overhaul, better R&D, crop diversification, improved markets, storage and logistics to close the gap.
8. Exports Could See Big Gains — With Better Infrastructure
India’s agricultural exports have grown but face challenges from infrastructure gaps and price volatility. The survey suggests that with strengthened processing and trade logistics, india could reach $100 billion in combined agri‑marine food exports in the next few years.
📌 Bottom Line
The Economic survey 2026 paints a nuanced picture of indian agriculture: resilient growth and diversification are promising, yet sustainability and productivity challenges – especially from climate stress and market inefficiencies – need deep policy focus. The roadmap points to climate‑smart technology, irrigation expansion, crop diversity and allied sectors as the pillars for future agricultural prosperity.
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