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Agriculture, forest, and fishing

Main articles: Agriculture in India, Forestry in India, Animal husbandry in India, Fishing in India, and Natural resources in India

Agriculture and allied sectors like forestry, logging and fishing accounted for 17% of the GDP, the sector employed 49% of its total workforce in 2014.[1] Agriculture accounted for 23% of GDP, and employed 59% of the country's total workforce in 2016.[2] India ranks second globally in food and agricultural production, while agricultural exports were $35.09 billion.[3][4] As the Indian economy has diversified and grown, agriculture's contribution to GDP has steadily declined from 1951 to 2011, yet it is still the country's largest employment source and a significant piece of its overall socio-economic development.[5] Crop-yield-per-unit-area of all crops has grown since 1950, due to the special emphasis placed on agriculture in the five-year plans and steady improvements in irrigation, technology, application of modern agricultural practices and provision of agricultural credit and subsidies since the Green Revolution in India. However, international comparisons reveal the average yield in India is generally 30% to 50% of the highest average yield in the world.[6] The states of Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Andhra Pradesh, Telangana, Bihar, West Bengal, Gujarat and Maharashtra are key contributors to Indian agriculture.

Amul Dairy Plant at Anand, Gujarat, was a highly successful co-operative started during Operation Flood in the 1970s.

India receives an average annual rainfall of 1,208 millimetres (47.6 in) and a total annual precipitation of 4,000 billion cubic metres, with the total utilisable water resources, including surface and groundwater, amounting to 1,123 billion cubic metres.[7] 546,820 square kilometres (211,130 sq mi) of the land area, or about 39% of the total cultivated area, is irrigated.[8] India's inland water resources and marine resources provide employment to nearly 6 million people in the fisheries sector. In 2010, India had the world's sixth-largest fishing industry.[9]

India exports more than 100,000 tonnes (98,000 long tons; 110,000 short tons) of processed cashew kernels every year. There are more than 600 cashew processing units in Kollam alone.[10]

India is the largest producer of milk, jute and pulses, and has the world's second-largest cattle population with 170 million animals in 2011.[11] It is the second-largest producer of rice, wheat, sugarcane, cotton and groundnuts, as well as the second-largest fruit and vegetable producer, accounting for 10.9% and 8.6% of the world fruit and vegetable production, respectively. India is also the second-largest producer and the largest consumer of silk, producing 77,000 tonnes (76,000 long tons; 85,000 short tons) in 2005.[12] India is the largest exporter of cashew kernels and cashew nut shell liquid (CNSL). Foreign exchange earned by the country through the export of cashew kernels during 2011–12 reached ₹43.9 billion (equivalent to ₹83 billion or US$1.0 billion in 2023) based on statistics from the Cashew Export Promotion Council of India (CEPCI). 131,000 tonnes (129,000 long tons; 144,000 short tons) of kernels were exported during 2011–12.[13] There are about 600 cashew processing units in Kollam, Kerala.[10]

Assam is largest tea producer in India
Kodagu is the largest producer of Coffee and Pepper in India

India's foodgrain production remained stagnant at approximately 252 megatonnes (248 million long tons; 278 million short tons) during both the 2015–16 and 2014–15 crop years (July–June).[14] India exports several agriculture products, such as Basmati rice, wheat, cereals, spices, fresh fruits, dry fruits, buffalo beef meat, cotton, tea, coffee and other cash crops particularly to the Middle East, Southeast and East Asian countries. About 10 percent of its export earnings come from this trade.[15]

Sugarcane weighing at a Pravara Sahakari Sakhar Karkhana Ltd in Maharashtra

At around 1,530,000 square kilometres (590,000 sq mi), India has the second-largest amount of arable land, after US, with 52% of total land under cultivation. Although the total land area of the country is only slightly more than one-third of China or US, India's arable land is marginally smaller than that of US, and marginally larger than that of China. However, agricultural output lags far behind its potential.[16] The low productivity in India is a result of several factors.Over-regulation of agriculture has increased costs, price risks and uncertainty, and governmental intervention in labour, land, and credit are hurting the market. Infrastructure such as rural roads, electricity, ports, food storage, retail markets and services remain inadequate.[17] The average size of land holdings is very small, with 70% of holdings being less than one hectare (2.5 acres) in size.[18] Irrigation facilities are inadequate, as revealed by the fact that only 46% of the total cultivable land was irrigated as of 2016,[8] resulting in farmers still being dependent on rainfall, specifically the monsoon season, which is often inconsistent and unevenly distributed across the country.[19] In an effort to bring an additional 20,000,000 hectares (49,000,000 acres) of land under irrigation, various schemes have been attempted, including the Accelerated Irrigation Benefit Programme (AIBP) which was provided ₹800 billion (equivalent to ₹1.2 trillion or US$14 billion in 2023) in the Union Budget.[20] Farming incomes are also hampered by lack of food storage and distribution infrastructure; a third of India's agricultural production is lost from spoilage.[21]

Mining, resources, and chemicals

Mining

Main articles: Mining in India and Iron and steel industry in India
an NLC India mine

Mining contributed $63 billion (3% of GDP) and employed 20.14 million people (5% of the workforce) in 2016.[2] India's mining industry was the fourth-largest producer of minerals in the world by volume, and eighth-largest producer by value in 2009.[22] In 2013, it mined and processed 89 minerals, of which four were fuel, three were atomic energy minerals, and 80 non-fuel.[23] The public sector accounted for 68% of mineral production by volume in 2011–12.[24] India has the world's fourth-largest natural resources, with the mining sector contributing 11% of the country's industrial GDP and 2.5% of total GDP.

Nearly 50% of India's mining industry, by output value, is concentrated in eight states: Odisha, Rajasthan, Chhattisgarh, Andhra Pradesh, Telangana, Jharkhand, Madhya Pradesh and Karnataka. Another 25% of the output by value comes from offshore oil and gas resources.[24] India operated about 3,000 mines in 2010, half of which were coal, limestone and iron ore.[25] On output-value basis, India was one of the five largest producers of mica, chromite, coal, lignite, iron ore, bauxite, barite, zinc and manganese; while being one of the ten largest global producers of many other minerals.[22][24] India was the fourth-largest producer of steel in 2013,[26] and the seventh-largest producer of aluminium.[27]

India's mineral resources are vast.[28] However, its mining industry has declined – contributing 2.3% of its GDP in 2010 compared to 3% in 2000, and employed 2.9 million people – a decreasing percentage of its total labour. India is a net importer of many minerals including coal. India's mining sector decline is because of complex permit, regulatory and administrative procedures, inadequate infrastructure, shortage of capital resources, and slow adoption of environmentally sustainable technologies.[24][29]

Iron and steel

Bokaro Steel Plant (BSL) alone contributes 45% of SAIL's profit and it produces highly diversified steel portfolio
MSTC Limited Kolkata HQ, a Metal trading e-commerce company

India surpassed Japan as the second largest steel producer in January 2019.[30] As per worldsteel, India's crude steel production in 2018 was at 106.5 tonnes (104.8 long tons; 117.4 short tons), 4.9% increase from 101.5 tonnes (99.9 long tons; 111.9 short tons) in 2017, which means that India overtook Japan as the world's second largest steel production country.

According to data presented by PIB(FY2021-22), there are more than 900 steel plants in India that produce crude steel. These are owned by PSUs, large-scale companies as well as small and medium enterprises (SMEs). In the year 2021-22, the total capacity of these plants stood at 154.06 million tonnes.[31]

India plans to build 12 new steel plants with a capacity of 60 megatonnes (59 million long tons; 66 million short tons) per year. Indian Ministry of Steel instructed public sector integrated steel plants to increase capacity by at least 80%, to 45 megatonnes (44 million long tons; 50 million short tons) per year by 2030. The current capacity is 25 megatonnes (25 million long tons; 28 million short tons) per year.[32]

Steel products produced by large and well established companies such as JSW Group, Jindal Steel and Power, Tata Steel, RINL and SAIL have extremely diversified steel product lines such as TMT Bars, steel pipes, railway tracks, rail wheels etc.

The total market value of the Indian steel sector stood at US$57.8 billion in 2011 and is predicted to touch US$95.3 billion by 2016.Growth of crude steel production in India has not kept pace with the growth in capacity of production, according to the report. As per this report, steel sector contributes 2 per cent to India's GDP and employs half a million people directly and 2 million people indirectly. The Indian steel sector has been vibrant, growing at a compounded rate of 6% year-on-year.[33]

Petroleum

Main article: Oil and gas industry in India
Haldia Petrochemicals in Haldia industrial city
MRPL Refinery in Mangalore

Petroleum products and chemicals are a major contributor to India's industrial GDP, and together they contribute over 34% of its export earnings. India hosts many oil refinery and petrochemical operations developed with help of Soviet technology such as Barauni Refinery and Gujarat Refinery , it also includes the world's largest refinery complex in Jamnagar that processes 1.24 million barrels of crude per day.[34] By volume, the Indian chemical industry was the third-largest producer in Asia, and contributed 5% of the country's GDP. India is one of the five-largest producers of agrochemicals, polymers and plastics, dyes and various organic and inorganic chemicals.[35] Despite being a large producer and exporter, India is a net importer of chemicals due to domestic demands.[36] India's chemical industry is extremely diversified and estimated at $178 billion.[37]

Chemicals and fertilizer

The chemical industry contributed $163 billion to the economy in FY18 and is expected to reach $300–400 billion by 2025.[38][39] The industry employed 17.33 million people (4% of the workforce) in 2016.[2]

National Fertilizers Vijapur Unit 2 as seen from prilling tower

At present, 57 large fertilizer units are manufacturing a wide number of nitrogen fertilizers. These include 29 urea-producing units and 9 ammonia sulfate-producing units as a by-product. Besides, there are 64 small-scale producing units of single super phosphate.[40]

According to the latest data released by the WTO, India has emerged as the second largest exporter of agrochemicals in the world. The rank was sixth, 10 years ago.The Indian agrochemical industry fetches valuable trade surplus every year. The trade surplus sharply increased from Rs. 8,030 crores in 2017–18 to Rs. 28,908 crores in the last fiscal. India's agrochemicals export has doubled in the last 6 years from $2.6 bn in 2017–18 to $5.4 bn in the last financial year according to the data recently released by Ministry of Commerce. It has grown at an impressive CAGR of 13% which is among the highest in the manufacturing sector.[41]

Millions of farmers in over 130 countries trust Indian agrochemicals for their high quality and affordable prices, said an industry observer. With the global agrochemicals market estimated at $78 billion, predominantly comprising post-patent products, India is rapidly becoming a preferred global hub for sourcing such agrochemicals. To bolster domestic production and reduce imports, the Crop Care Federation of India (CCFI) has recommended specific measures to the Government of India.[42]

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  6. ^ Datt & Sundharam 2009, pp. 499–501
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  8. ^ a b "State-Wise Details of Net Irrigated Area (NIA), Net Sown Area (NSA) And Percentage of NIA To NSA" (PDF). Ministry of Water Resources, Government of India. Archived from the original (PDF) on 21 July 2011. Retrieved 18 November 2010.
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