Agriculture is one of the strongholds of the Indian economy and it accounts for 18.5 percent of the gross domestic product (GDP). Agriculture draws its significance from the fact that it has vital supply and demand links with the manufacturing sector and is a source of livelihood for the rural population of India, and it represents the backbone of rural livelihood security system.

In 2007-08, India achieved a record food grain production of 227 million tonnes, posting a growth of 10 to 12 million tonnes in excess of the previous fiscal. With an added two to three million tonnes during the Rabi season, it would touch 230 million tonnes - a landmark in food grain production.

According to a Rabobank report titled "Indian agri-biotech sector: Emerging scenario, issues and challenges", the agri-biotech sector in India has been growing at a whopping 30 per cent since the last five years, and it is likely to sustain the growth in the future as well. The report further states that agricultural biotech in India has immense potential and India can become a major grower of transgenic rice and several genetically engineered vegetables by 2010. Already research work is being carried in 19 crops like rice, wheat, cotton, potato, banana, tomato, rapeseed, mustard and coffee among others.

The food processing sector, which contributes 9 per cent to the GDP, is presently growing at 13.5 per cent against 6.5 per cent in 2003-04, and is going to be an important driver of the Indian economy.

Production

India has become the world's largest producer across a range of commodities due to its favourable agro-climatic conditions and rich natural resource base.

India is the largest producer of coconuts, mangoes, bananas, milk and dairy products, cashew nuts, pulses, ginger, turmeric and black pepper. It is also the second largest producer of rice, wheat, sugar, cotton, fruits and vegetables.

According to a monthly review by the Centre for Monitoring Indian Economy (CMIE), agricultural production is likely to increase significantly during fiscal year 2009. CMIE has projected a growth of 3.2 per cent during fiscal year 2009, for the GDP of agriculture and allied sectors. "This would be the fourth straight year of positive growth in agricultural production, with the first three years clocking an average growth of 5.5 per cent," CMIE stated. The allied sectors comprising livestock, forestry and logging, and fishing are likely to see a growth of 4.8 per cent during fiscal year 2009.

Some of the highlights of advance estimates of the production of major crops are:

• India's coffee production is likely to increase by 12 per cent next year to 293,000 metric tonnes in the year beginning October 2008 compared with the 262,000 tonnes forecast for this year.
• According to the Rubber Board, the production of natural rubber shot up by over 18 per cent to 72,000 tonnes in August 2008, against 60,850 tonnes in August 2007. The overall output in April-July 2008 reached 238,865 tonnes, against 183,220 tonnes in the same period last year at a growth rate of 30.4 per cent.
• The total tea export during the January-June period in 2008 touched 87.41 million kg compared with 76.97 million kg in the same time of the previous year.
• Soybean production is likely to touch an all-time high of 12 million tonnes in 2008, 20 per cent higher than the previous year.