The agriculture industry plays a key role in world wide today as it is still one of the key and basic developments in modern society. Global agriculture industry will be primarily driven by rapidly growing population, increasing food consumption and subsequent need for securing sufficient food supply worldwide. Growing popularity of small-scale farming, increasing use of technology and robust demand for food commodities in emerging markets such as China, India and Brazil also show a positive prospect for the future of the industry.
According to the report conducted by Hardman&Co, by the year 2010, 1.5 billion hectares of land in worldwide can be suitable for arable production, with an estimated value of about $5 trillion. It estimates that as a component of global GDP, the sector represents around 6% or $4.2 trillion of global output pa – equal to around $650 per capita.
Agriculture is the largest sector in India. It is the largest employer with more than 52% of the work force in farming and allied activities. Agriculture contributes 14% to the economy. Most of the industries also depend upon the sector for their raw materials. India has emerged as a major player in the global agriculture market. In the last five years, the country’s agriculture exports have tripled from around Rs 80,000 crore (US$ 12.75 billion) to Rs 2.32 trillion (US$ 33.99 billion).
Total exports of Indian agri and processed food products from April to August 2013 stood at US$ 9,711.09 million as compared to US$ 8,806.41 million during the same period last year, according to the data released by the Agricultural and Processed Food Products Export Development Authority (APEDA).
From a net importing country, India is today consistently producing 250 million tonnes (MT) of food grains, 100 MT of rice, 90 MT of wheat, 35 million bales of cotton, and more than 18 MT of pulses. The growth is facilitated mainly by Krishi Vigyan Kendras (KVK) system which is spread across the country.
The foreign direct investment (FDI) inflows in agricultural services and machinery sector during April 2000 to August 2013 stood at US$ 1,629.19 million and US$ 337.35 million respectively.
Indian agriculture has undergone rapid transformation in the past two decades owing to investments in technology development, irrigation infrastructure, emphasis on modern agricultural practices and