India Agriculture Market Outlook 2026–2035: Growth Drivers, Segmentation, and Key Challenges

The India agriculture market was valued at USD 479.67 billion in 2025 and is projected to grow at a CAGR of 4.90% during the forecast period of 2026–2035, reaching a value of USD 773.92 billion by 2035. Agriculture remains a significant sector in India, not only in terms of employment but also as a primary driver of economic growth and food security. The growth of the agriculture market is supported by an evolving landscape of agriculture technologies, government support, and evolving consumer demand for diversified agricultural products.

Key Growth Drivers

Increasing Demand for Food Products

The growing population in India, which is projected to be the largest in the world by 2030, is driving a significant increase in food demand. As the country’s population continues to rise, so does the need for agricultural production. This puts pressure on the agriculture industry to adopt more efficient and scalable farming practices. Both the food and non-food agriculture sectors, including floriculture, sericulture, and dairy, are expected to witness substantial growth, driven by the growing consumer demand.

Technological Advancements and Modernization of Farming

The ongoing transformation of the agriculture sector through technology adoption is significantly contributing to market growth. The introduction of precision farming, smart irrigation systems, and agricultural drones is helping farmers increase yields while optimizing resource use, particularly water and fertilizers. Digital platforms, which connect farmers with resources, weather forecasts, and markets, are also helping increase productivity. Additionally, automated equipment such as tractors, harvesters, and sprayers is reducing labor dependency and enhancing efficiency across farming processes.

Get a Free Sample Report with Table of Contents

Government Support and Policy Initiatives

The Indian government has long recognized agriculture as the backbone of the economy and continues to offer various incentives and policies to support the sector. These include subsidies for fertilizers, crop insurance schemes, and minimum support prices (MSP) for essential crops. Furthermore, PM Kisan Samman Nidhi, which provides financial assistance to farmers, has helped improve their economic conditions, encouraging investments in better agricultural practices and equipment.

Rising Focus on Sustainability and Organic Farming

Sustainability is increasingly becoming a priority in India’s agricultural landscape, driving interest in organic farming and bio-agriculture. With a growing awareness of the negative effects of chemical fertilizers and pesticides on the environment and public health, many farmers are turning to natural farming techniques. The demand for organic produce is on the rise, both in domestic and international markets, and is expected to continue to drive growth in the agriculture market.

Market Segmentation

By Sector

1. Farming: Traditional farming remains a dominant sector, with crop production (e.g., rice, wheat, maize, pulses) being the backbone of the Indian agriculture industry. However, there is a shift towards high-value crops, including fruits, vegetables, and medicinal plants, driven by changing consumer preferences.
2. Agricultural Equipment: The demand for advanced agricultural equipment such as tractors, combine harvesters, and plows is growing rapidly. This growth is driven by the need for efficiency, scalability, and automation in the farming process. The Indian government’s initiatives, including subsidies for machinery, also contribute to the expansion of this sector.
3. Fertilizers and Pesticides: The fertilizers and pesticides sector remains essential for maintaining soil fertility and protecting crops from diseases and pests. While the demand for biofertilizers is growing, chemical fertilizers still dominate the market, especially nitrogen-based products like urea.
4. Warehousing and Cold Chains: As India’s food production diversifies, the need for better storage facilities, including warehouses and cold storage chains, is rising. This infrastructure is critical for maintaining the quality and shelf life of perishable agricultural products, particularly fruits, vegetables, dairy, and meat.
5. Dairy: Dairy farming is a major contributor to the Indian agriculture market. India is the world’s largest producer and consumer of milk, and the dairy market continues to grow due to rising demand for dairy products like milk, cheese, butter, and yogurt.
6. Floriculture and Apiculture: India’s floriculture and apiculture sectors are witnessing growth as global demand for flowers, honey, and related products increases. These sectors are especially appealing to small-scale farmers and rural economies.
7. Sericulture: India is one of the world’s largest producers of silk, with sericulture growing in states like Karnataka, Andhra Pradesh, and West Bengal. The market for silk products, including textiles and garments, continues to expand, supporting the growth of the sericulture sector.
8. Fisheries and Poultry: With increasing demand for protein-rich foods, the fisheries and poultry sectors are expanding rapidly. The rise of aquaculture, as well as improved poultry farming techniques, is driving growth, particularly in export markets.
9. Animal Husbandry and Feed: As livestock farming grows in importance, particularly in the dairy and meat sectors, demand for animal feed and husbandry products is rising. The focus on nutritious feed to improve livestock health and productivity is a key market driver.

By Application

1. Grains and Cereals: The majority of fertilizers, pesticides, and farming techniques are focused on grains and cereals such as wheat, rice, and maize, as they are the staple crops in India.
2. Other Applications: As agriculture diversifies, products like fruits, vegetables, and cash crops are becoming more significant in the Indian market, and require specialized attention in terms of fertilization, pest management, and harvest equipment.

Regional Analysis

The Northern and Western regions of India, such as Punjab, Haryana, and Rajasthan, are major contributors to the country’s agricultural output, with large-scale wheat and rice cultivation. The Southern states, including Tamil Nadu, Andhra Pradesh, and Karnataka, are significant in the cultivation of fruits, vegetables, and cotton. Maharashtra, Madhya Pradesh, and Bihar are key contributors to the growing horticulture and livestock sectors.

Competitive Landscape

The Indian agriculture market is highly fragmented, with a mixture of large companies and small-scale producers. Key players in the market include companies like Mahindra & Mahindra (agriculture equipment), Coromandel International (fertilizers), ITC (agriculture exports), and BASF India (crop protection). These players are continuously innovating to meet the growing demand for technology-driven, sustainable agriculture solutions.

Market Challenges

Despite strong growth prospects, the Indian agriculture market faces several challenges, including water scarcity, soil degradation, climate change, and inconsistent supply chains. These factors can disrupt agricultural productivity and affect market growth. Additionally, small-scale farmers, particularly in rural regions, often lack access to technology, financing, and modern infrastructure, which limits their productivity.