Present status and performance of Agriculture & Allied fields and Industries in India
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Agriculture and allied sectors like forestry and fisheries account for about 50% of employment in India but only contribute around 14% to GDP. Several key sectors are discussed including horticulture, food processing, animal husbandry, fishing, and contract farming. The document also summarizes the status of important industries such as textiles, chemicals, sugar, paper, machine tools and auto components. Overall the agriculture and industry sectors provide livelihood for much of the population but have potential for increased contribution to the economy.
Present status and performance of Agriculture & Allied fields and Industries in India
- 2. PRESENT STATUS & PERFORMANCE OF AGRICULTURE & ALLIED FIELDS
- 3. Presented By, SANTO. P. SAM
- 5. AGRICULTURE India’s geographical area – 2.4% of the world water resources – 4% Population – 17% Agriculture is an important sector of Indian economy. - Accounts for 14% of the nation’s GDP - About 11% of its exports - India ranks 2nd worldwide in farm output having 177.9 million hectares of agricultural land. Agriculture & allied sectors like forestry & fisheries accounted for 13.7% of the GDP in 2013, about 50% of the total workforce.
- 6. GEOGRA Exports in Rice and Wheat = 2nd Largest in the world. India’s agro exports during 2013-14 touched U.S. $45 billion as against U.S. $25 billion in 2011-12. According to the APEDA, total exports of Indian agri and processed food products in the period April- Feb 2013-14 stood at U.S. $ 20,331.05 million as compared to U.S. $19,144.45 million during the corresponding period of the previous year. On account of higher output in Assam and West Bengal, tea production in India in April-Feb, 2013-14 rose by 7% to 1,152.91 million kg. India rice reserves stood at 21.2 million tones as of July 1 and wheat stockpiles were at 39.8 million tones.
- 7. ALLIED FIELDS OF AGRICULTURE Horticulture Food Processing Sector Animal Husbandry Fishing Sector Contract Farming Sericulture
- 9. HORTICULTURE • Horticulture is basically the science of cultivating gardens or orchards, i.e., it refers to the process of cultivation of fruits, vegetables, flowers & ornamental plants. • It involves increasing the area & productivity of farming lands, bringing technological aspect in agriculture, being a source of employment opportunities. • India is currently producing 257.2 million tones of horticulture produce from an area of 23 million hectare. • India ranks 2nd in fruits and vegetables production in the world, after China. • India is the largest producer of ginger & okra amongst vegetables & ranks 2nd in production of potatoes, onion, cauliflowers, brinjals, cabbages etc. • During 2013-14, India exported fruits & vegetables worth Rs. 8,760.96 Crores.
- 11. FOOD PROCESSING SECTOR • Food processing aims to make food more digestible, nutritious and extend the shelf life. • Food processing is the large sector that covers activities such as agriculture horticulture, plantation, animal husbandry & fisheries. • The Ministry of Food processing, Govt. of India indicates the following segment with in the food processing industry: Diary, fruits & vegetable processing Grain processing Meat & poultry processing Fisheries Consumer foods including packaged foods, beverages & packaged drinking water.
- 12. CONTRIBUTION • The FPS contributes as much as 9 to 10% of GDP in agriculture and manufacturing sector.$200 billion by 2015. • The FPS contributes 7% of India’s GDP. • Value addition of food product is expected to increase from the current 8% to 35% by the end of 2025. • Fruit and vegetable processing which is currently around 2% of total production will increase to 25% by 2025. • The highest share of processed food is in the diary sector, where 37% of the total produce is processed, of this only 15% is processed by the organized sector.
- 14. ANIMAL HUSBANDRY • The animal production system in India is predominantly part of a mixed crop livestock farming system vital for livelihood security of the farmers. • For the year 2012-13 the Dept. has been allocated $1,910 crore which has been reduced to Rs.1,800 crore in RE.
- 16. FISHING SECTOR • The fisheries and aquaculture sector is recognized as the sunshine sector in Indian agriculture. • India is the 2nd Largest producer of fish in the world, contributing about 5.54% of global production. • During 2012-13 marine products exports reached an all time high of Rs. 18,856 crore. • The fisheries sector contributes to the national income, exports, food and nutritional security & employment generation. • As per the estimates of Central Statistical Organization, of the Govt. of India, the value of GDP from fisheries sector at current prices during 2011-12 was Rs. 65,541 crore, which is 4.47% of the total GDP of agriculture & allied sectors.
- 18. CONTRACT FARMING • Contract farming is defined as those contractual arrangements ,between farmers and companies, whether oral or written, specifying one or more conditions of production and marketing of an agricultural product. • Contract farming has considerable potential in terms farmers’ access to modern technology, quality, inputs and marketing supports through contractual agreement between processing and /or marketing firms for production support at predetermined prices. • The model APMC act has the provision to promote and to facilitate contract farming.
- 19. ADAVANTAGES Provision of inputs and production services Access to credit Introduction of appropriate technology Skill transfer Guaranteed and fixed pricing structures Access to reliable markets. DISADVANTAGES Increased risk Unsuitable technology and crop incompatibility Manipulation of quotas and quality specifications Corruption Domination by monopolies Indebtedness and over reliance on advances.
- 21. SERICULTURE • Sericulture is an agro-based cottage industry. It refers to the mass scale rearing of silk producing organisms in order to obtain silk. • The major activities involved in a Sericulture Industry are 1. Cultivation of silkworm food plans 2. Rearing of silkworms for the production of raw silk 3. Reeling the cocoons for unwinding the silk filament 4. Other post-cocoon processes such as twisting, dyeing, weaving, printing & finishing • India is ranked as the 2nd major raw silk producer in the world. • Silk is a high value but low volume product accounting for only 0.2% of worlds total textile production.
- 22. PRESENT STATUS & PERFORMANCE OF INDUSTRIAL SECTORS PRESENT STATUS & PERFORMANCE OF INDUSTRY SECTORS
- 23. INDUSTRY SECTORS • Growth in the industrial sector is one of the vital figures that affect the GDP in India. • The post 1990 Govt. Of India economy policy endorsed complete different economic policy & opened it’s market for foreign investments. • The industry sector makes up 18% India’s GDP and employs the 19% of the labour force. • Experts believe that the contribution of India in the world GDP is estimated to increase from 6% to 11% by the year 2025.
- 24. KEY INDUSTRY SECTORS Chemical Industry Paper Industry Auto Component Industry Pharmaceutical Industry Semiconductor Industry Coal Industry Consumer Durables Sugar Industry Machine Tools Industry Engineering Products Industry Biotechnological Industry Hardware Products Industry Mining Industry FMCG Industry
- 25. TEXTILE INDUSTRY
- 26. TEXTILE INDUSTRY • India is world’s 2nd largest producers of textiles and garments. • Abundant availability of raw materials such as cotton, wool, silk and jute as well as skilled workforce have made the country as a hub. • The Indian textile industry accounts for about 24% of the world’s spindle capacity 8% of the world’s rotor capacity • The potential size of the Indian textiles & apparel industry is expected to reach US$ 223 billion by 2021. • This sector contributes about 14% industrial production, 4% to the GDP. • The textiles sector largest provider of employment after agriculture.
- 28. CHEMICAL INDUSTRY • Chemical Industry, which includes basic chemicals and its products, petrochemicals, fertilizers, paints, gases, soaps, perfumes & toiletries and pharmaceuticals is one of the most diversified of all industrial sectors. • It contributes about 3% in the GDP of the country. • The Indian chemical industry is likely to grow at a compound annual growth rate of 10-12 % over the next five years.
- 29. SUGAR INDUSTRY
- 30. SUGAR INDUSTRY • Sugar is made from sugarcane and was first discovered thousands of years ago in New Guinea And then the route was traced to India and Southeast Asia. • India was the first to begin with the production of sugar following the process of pressing sugarcane to extract juice and boil it to get crystals. • India is the largest producer of sugar equivalent to 26 million tones raw value followed by Brazil in the 2nd place at 18.5 million tones . • Sugar industry is regarded as 2nd after the Textile industry in India as per agro-processing industry in the country. • Today nearly 50 million sugarcane farmers and a large no. of agricultural labourers are involved in sugarcane cultivation.
- 31. PAPER INDUSTRY
- 32. PAPER INDUSTRY • Paper Industry is one of the high priority industries having a bearing on the socio-economic development of the country. • Indian paper industry has been more than a decade. Today there are more than 850 paper mills functioning all over the country. • This industry is known to be one of the most leading industries in India as it provides employment to more than 1.5 million people. • The paper industry in India is growing at the CAGR of around 9.6% during 2012-2017
- 33. MACHINE & TOOL INDUSTRY
- 34. MACHINE TOOLS INDUSTRY • Globally, India ranks 13th and 6th in use of machine tools, compared with China, which includes both production and consumption. • Machine tool production in India has decreased to Rs. 3481Cr. during 2013- 14 from Rs. 3885 Cr. Compared to 2012-13 registering the annual decline of 10%. • The current market size of the machine tool industry stands at $2,050 million of which the domestic production makes around 33% of the total consumption.
- 35. AUTO COMPONEN T INDUSTRY
- 36. AUTO COMPONENT INDUSTRY • The Indian auto component industry is one of the country’s rising industries with tremendous growth prospects. • India is now a supplier of a range of high-value and critical automobile components to global auto makers such as General Motors, Toyota, Ford and Volkswagen, amongst others. • The industry currently accounts for almost 7% of India’s GDP and employs about 19 million people, both directly or indirectly. • The rapidly globalising world is opening new avenues for the transportation industry, generating the need for more efficient, safe and reliable modes of transportation, which is subsequently adding to the auto component industry’s growing oppurtunities. • The Indian auto component industry is set to become the 3rd largest in the world by 2025.
- 38. ENGINEERING PRODUCTS INDUSTRY • It is a diverse industry with a no. of segments, and can be broadly categorised into 2 segments, namely, heavy and light engineering. • It employs approx. 4 million skilled and semi-skilled workers & accounts for 27% of the total factories in the industrial sector. • The sector accounts for about 20% of India’s total exports . • The turnover of engineering service firms is also likely to touch US$ 37 billion by 2020. • This industry registers a growth of 8.49% compared to the previous year.
- 40. PHARMACEUTICAL INDUSTRY • India is among the top 5 emerging pharma markets and has grown at an estimated CAGR of 13% during the period of 2009-13. • The country’s pharma industry accounts for about 1.4% of the global pharma industry. • The Govt. of India has unveiled Vision 2020, aimed at making India a global leader in end-end drug manufacturing. • Pharmaceutical sales in India are expected to grow by 14.4% in 2016.
- 42. BIOTECHNOLOGY INDUSTRY • Biotechnology sector of India is one of the most significant sectors in enhancing India’s global profile as contributing to the growth of the economy. • India is among the top 12 biotech destinations in the world and is the producer of recombinant Hepatitis B vaccine. • Recently India has become the 4th largest country to grow biotech or genetically made crops. • Indian biotech industry holds about 2% share of the global biotech industry. • Pharma is the largest sector contributing about 62% of the total revenue followed by bio-services(18%), bio-agri(15%), bio-industry(4%), bio-informatics( 1%). • India emerged as a leading destination for clinical trials.
- 44. SEMICONDUCTOR INDUSTRY • The semiconductors and electronics sector is a key player in the economy and one of the most globalized industries in the world. • The rapidly growing Indian electronics industry can be broadly categorised into six segments : Consumer electronics, industrial electronics, strategic electronics, computers, communication and broadcasting equipment, and electronic component. • India has well developed semiconductor design industry and is ranked 2nd , globally, in terms of design revenues. • The growing demand for smartphones and tablets are the key growth drivers of the overall electronics market. • The domestic Electronic System Design and Manufacturing market is expected to grow at a CAGR of 9.9% by 2015.
- 45. HARDWARE PRODUCTS INDUSTRY • The role of Electronics and Hardware industry in India GDP is to ensure the growth of other industries and contribute to the growth of the Indian economy. • Role of electronics and Hardware industry in India GDP is crucial for the development of the IT and the ITES sector in India. • The industry is growing at about 30%p.a. At this growth the market size is projected to exceed US$158 billion 2015. • The CAGR of IT services industry has been over 50%. • The Indian computer hardware market represents a CAGR of 23.5% between 2009-13
- 46. COAL INDUSTRY
- 47. COAL INDUSTRY • Coal is the most abundant fuel resource in India. • Coal contributes 55% to the production of energy resources. • Opencast mining, accounts for India’s coal production and is favored method for mining. • Opencast mining requires exploitation extracts of lands, and has long environmental impacts, such as loss of vegetation and tree cover, erosion, depleted forest cover and bio-diversity. • Coal industry is the world’s 3rd largest in production. • Coal has great requirement in India, which is mainly used for generation of power, steel and other purposes.
- 48. MINING INDUSTRY
- 49. MINING INDUSTRY • Minerals are valuable natural resources being finite and non-renewable. • India produces as many as 87 minerals • Mining industry is characterized by a large number of small operational mines. • Out of 2628 reporting mines, 377 were located in Gujarat, followed by Andhra Pradesh(372), Jharkhand(288), Madhya Pradesh(251), Rajasthan(215), Karnataka( ), Orissa(159), Tamil Nadu(156), Maharashtra(142), Chhattisgarh(135) and West Bengal(111). • The industry registered a CAGR of 5.2%. • The industry contributes 1.86% of GDP in India.
- 51. CONSUMER DURABLES • Consumer durables are a category of consumer products that do not have to be purchased frequently because they are made to last for an extended period of time. For Eg. TV, refrigerators, air conditioners and washing machines. • The consumer durables can be broadly classified into 2 segments : Consumer Electronics & Consumer Appliances. • India expected to become 5th largest consumer durable market in the world. • The Govt. of India has 100% FDI in electronics hardware- manufacturing under automatic route. • The Govt. also reduced excise duty to 6% on LED lamps and LED required for manufacture of such lamps.
- 53. FMCG INDUSTRY • The India FMCG Industry, with an estimated market size of Rs.2 trillion. • It is the 4th largest sector in India. • The sector has strong MNC presence, well established distribution networks and high competition between organized & unorganized players. • The overall fast moving consumer goods market is expected to increase at a compound annual growth rate of 14.7% to US$110.4billion during 2012-20with rural FMCG market to increase at a CAGR of 17.7% to US$100billion during 2011-25. • The industry has witnessed a healthy FDI inflow. • The Govt. has approved 51% FDI in multi-brand retail.
- 54. CONCLUSION • India ranks 2nd worldwide in farm output having 177.9 million hectares of agricultural land. • India ranks 2nd in fruits and vegetables production in the world, after China. • India is the 2nd Largest producer of fish in the world, contributing about 5.54% of global production. • India is ranked as the 2nd major raw silk producer in the world. • India is the largest producer of sugar equivalent to 26 million tones raw value. • The Indian auto component industry is set to become the 3rd largest in the world by 2025. • Coal industry is the world’s 3rd largest in production. • India expected to become 5th largest consumer durable market in the world. • FMCG is the 4th largest sector in India.