India’s agriculture sector is entering a new phase of growth driven increasingly by livestock, fisheries and horticulture, rather than foodgrains alone, according to the Economic Survey 2025–26 tabled in Parliament on Thursday. The Survey positions agriculture at the core of India’s inclusive growth strategy, noting that value addition and diversification will be key to raising farm incomes and strengthening rural livelihoods.
As India advances towards its Viksit Bharat goal, the Survey underscores that agriculture will remain central to economic resilience and employment generation, particularly in rural areas. Despite climate volatility and global uncertainties, the sector has demonstrated steady performance, emerging as one of the strongest growth pillars of the economy.
Over the past five years, agriculture and allied activities have grown at an average annual rate of about 4.4 per cent in real terms—among the best performances in decades. In the second quarter of FY26, the sector expanded by 3.5 per cent, reflecting stable momentum.
The Survey highlights a structural shift within agriculture, with allied activities now driving much of the sector’s growth. During FY16–FY25, agriculture and allied activities recorded a decadal growth rate of 4.45 per cent, the highest compared with earlier decades. This acceleration has been powered by robust expansion in livestock and fisheries, which have significantly outpaced traditional crop growth.
Livestock output grew at an average rate of 7.1 per cent, while fishing and aquaculture expanded even faster at 8.8 per cent, compared with crop-sector growth of 3.5 per cent. The transformation is especially evident in livestock, where gross value added rose by nearly 195 per cent at current prices between FY15 and FY24, translating into a compound annual growth rate of close to 13 per cent.
Fisheries have also emerged as a major income engine. Fish production increased by over 140 per cent between 2014 and 2025, marking a sharp acceleration from the previous decade. Together, livestock and fisheries are increasingly shaping farm incomes, offering diversified revenue streams and greater income stability for rural households.
At the same time, foodgrain production continues to rise, reinforcing India’s food security. Output is estimated to have reached a record 3,577.3 lakh metric tonnes in the agricultural year 2024–25, an increase of more than 250 lakh tonnes over the previous year. Higher production of rice, wheat, maize and coarse cereals—including millets or Shree Anna—has driven this growth.
Horticulture has emerged as one of the brightest spots in India’s agricultural landscape. Accounting for nearly one-third of agricultural gross value added, horticulture production touched 36.2 crore tonnes in 2024–25, surpassing foodgrain output. Since 2013–14, production has risen sharply across fruits, vegetables and other high-value crops.
The Survey notes that India is now the world’s largest producer of dry onions, contributing about a quarter of global output, and ranks second globally in the production of fruits, vegetables and potatoes. These achievements underscore India’s expanding role in global food markets and the strong income potential of high-value agriculture.
Looking ahead, the Economic Survey concludes that agriculture’s future growth will be anchored in diversification, value addition and allied activities. With dairy, poultry, fisheries and horticulture already making sizeable contributions to GDP, the sector is well positioned to drive inclusive growth, create rural employment and support India’s broader development ambitions.