Economic Survey 2023-24: Livestock and Fisheries Emerge as Key Drivers of India’s Agricultural Renaissance

New Delhi: The Economic Survey 2023-24, tabled in Parliament today by Union Finance and Corporate Affairs Minister Nirmala Sitharaman, reveals a transformative narrative in India’s agricultural landscape. The Survey emphasizes the burgeoning growth and pivotal role of the livestock and fisheries sectors, marking them as cornerstone contributors to the nation’s economic prosperity and farm income enhancement.

Livestock Sector: Catalyzing Agricultural Advancement

From 2014-15 to 2022-23, the livestock sector displayed a robust Compound Annual Growth Rate (CAGR) of 7.38 percent at constant prices. This sector’s share in the total Gross Value Added (GVA) in agriculture and allied sectors soared from 24.32 percent in 2014-15 to 30.38 percent in 2022-23. The livestock sector’s contribution to the total GVA reached 4.66 percent, significantly elevating the per capita availability of milk, eggs, and meat.

Fisheries Sector: A Beacon of Economic Potential

The fisheries sector, integral to the Indian economy, accounted for approximately 6.72 percent of the agricultural GVA and grew at an impressive CAGR of 8.9 percent between 2014-15 and 2022-23 (at constant prices). This sector supports around 30 million people, particularly from marginalized and vulnerable communities. In 2022-23, India achieved a record fish production of 17.54 million tons, ranking third globally and contributing 8 percent to global production.

To further strengthen this sector, the Pradhan Mantri Matsya Sampada Yojana (PMMSY) was introduced, focusing on enhancing seed and fish production and other extension services. Additionally, the Fisheries and Aquaculture Infrastructure Development Fund (FIDF), established in 2018-19 with a total fund size of ₹7.52 thousand crore, has recommended 121 proposals worth ₹5.59 thousand crore at concessional rates.

Strategic Investments in Animal Husbandry

The Animal Husbandry Infrastructure Development Fund (AHIDF) promotes investments from individual entrepreneurs, private companies, FPOs, and Section 8 companies, including Dairy Cooperatives. Key investment areas include dairy processing, meat processing, animal feed plants, and breed improvement technology. The government provides a 3 percent interest subvention and a credit guarantee of up to 25 percent of total borrowing. As of May 2024, 408 projects worth ₹13.861 crore have been sanctioned, generating 40,000 direct employment opportunities and benefiting over 42 lakh farmers.

Food Processing Sector: A Powerhouse of Employment and Exports

India stands as the largest producer of milk and the second largest producer of fruits, vegetables, and sugar. The food processing industry is a major employer in organized manufacturing, holding a 12.02 percent share of total employment in the sector. The value of agri-food exports, including processed food, during 2022-23 was USD 46.44 billion, accounting for about 11.7 percent of India’s total exports. The share of processed food exports rose from 14.9 percent in 2017-18 to 23.4 percent in 2022-23.