India is principally an agricultural country. India is a typically agrarian economy. With 157.35
million hectares under agriculture, India holds the second-largest agricultural land in the world.
Additionally, India is among the fifteen leading exporters of agricultural products in the
world.
With a rising population, globalization, a rapidly growing economy and surge of demand,
it is no surprise that India stands to gain from increased foreign investments in the agriculture
sector.
At present, 100% foreign direct investment (FDI) is allowed.
Agriculture and its allied activities provide a livelihood for more than half of the Indian
population.
In terms of gross domestic product (GDP), the sector accounts for 14% of India’s
GDP. Agriculture in India is a highly attractive sector. Besides the traditional opportunities,
it presents numerous opportunities along its value chain to investors looking to invest in this
lucrative sector.
The data for FDI inflows shows that foreign investors have a keen interest in the Indian market.
The increased interest of foreign investors has been kindled by a young population, huge consumer
base, growing middle class, increased urbanization and awareness and the rising disposable
incomes.
The government of India is working relentlessly to make agriculture in India a promising sector for
global investment. They have taken various steps in order to revitalize the agricultural sector and
improve the farming community on a sustainable basis.
The marginal increments in the agricultural investment scenario can be increased in case few policies
are chalked out along with the stability of the government and its institutions. The agrarian economy
of India can become the torch bearer for applying FDI in the agriculture sector. To learn more about
FDI Policy in India, please click here.
In what is seen as a groundbreaking move, India has become the first nation in the world to adopt an
Agroforestry policy.
Agroforestry & Sustainability: Agroforestry can spark a new economic revolution in India
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