Tuesday, 3 March 2015

Investment Opportunities in Indian Agriculture

In India agriculture has been the primary source of livelihood for several years. More than 65% of people depend on it, even today. Agriculture is a prominent sector of Indian economy that is instrumental in ascertaining country’s sustainability and overall growth.

Vastness of Agriculture Market in India

India is one of the largest producers of jute, jute milk, organic fibers, and pulses across the world. It is also the second biggest supplier of wheat, rice, sugarcane, wheat, rice, vegetables, cotton, fruits, and groundnuts. In addition, it also produces the highest yield of plantation crops and spices in the world. It leads the production of poultry, livestock, and fisheries too.

As per estimation at agricultural landscape, India has displayed remarkable progress. As per the GDP from agriculture and allied sectors it has registered 3.6% of growth during the 11th five year plan. In addition, considering this growth rate it is predicted that it will push to 4% during the period of the 12th five year plan.

The increasing demand for agricultural products has also played a great role in the growth of the agricultural sector in India. Now this sector has become an active player in the global economy. It shows that there is ample opportunity for venture capital companies in India to invest in this sector for profitable returns.

Factors Stimulating Indian Agricultural Market

In the recent years there has been a remarkable increase in the incomes of urban areas people, which is a major driver for the increase in demand for agriculture products.

Department of Agriculture and Cooperation has increased 18% in planned expenditure, headed by the Ministry Of Agriculture. This also acts as a booster.

Several plans and programs have been floated by the government to promote this sector. The Minimum Support Prices have also been reduced by the government to promote better production of crops.

To top it all the increasing population of the country is one major driver for stirring the demand in the agricultural industry for many decades. The demands for agricultural products in India are always on the rise and the shortfalls in addressing this demand are also expected. So there is a huge scope of investment of venture capital funds by venture capital firms in India. 


The Indian government is consistently working towards making Indian agriculture a promising investment sector for global players. With the introduction of Food Security Bill in parliament, the demand for more investments in the agricultural sector of India has also got the desired impetus.

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