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Agriculture And Food Processing Sector

Agriculture is the primary source of livelihood for about 58 per cent of India’s population. Gross Value Added by agriculture, forestry and fishing is estimated at Rs 18.55 lakh crore (US$ 265.51 billion) in FY19(PE).

The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. The Indian food and grocery market are the world’s sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing industry accounts for 32 per cent 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 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment.

Overall exports of Agriculture and allied products were USD 18.7 Bn in 2018-19, as compared to USD 18.59 Bn in 2017-18.

Export highlights of key agricultural commodities in 2018-19

  • Basmati Rice worth USD 4.71 Bn were exported in 2018-19, occupying share of 1.43% in India’s exports.
  • Non basmati rice worth USD 3.03 Bn were exported in 2018-18, occupying share of 0.92% in India’s exports.
  • Tea and Coffee were USD 0.83 bn & 0.82 Bn respectively  were exported in 2018-19, occupying share of 0.25% each IN India’s exports
  • Spices were USD 3.32 Bn were exported in 2018-19, occupying share of 1.01% in India exports.
  • Processed vegetables and fruits were exported worth USD 0.81 Bn & 0.79 Bn in 2018-19 respectively, occupying a share of 0.25% and 0.24% respectively.


The Agriculture and Processed Food Products Export Development Authority (APEDA) plays a significant role in tapping India’s agricultural strengths and works towards expanding the export potential of Indian agricultural and food products. 


Source: India Brand Equity Foundation

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