Economic survey backs crop diversification, horticulture emerges as bright spot

The Union government on Thursday bated for the adoption of crop diversification to enhance the agricultural productivity of traditional crops, even as it lauded the horticulture sector for emerging as a bright spot after contributing 33 per cent to the agricultural gross value added (GVA).

According to the Economic Survey 2025-26 tabled by Union Finance Minister Nirmala Sitharaman, the growth of agriculture and allied services was pegged at 3.1 per cent in FY26. It also emphasised that agriculture will be central to achieving 'Viksit Bharat', driving inclusive growth, and improving the livelihoods of millions of people.

"The fisheries and livestock sectors have exhibited growth of more than 7 per cent. It is high time we adopt crop diversification of the traditional crops for the sake of nutrition, soil fertility, water table, and profits," Chief Economic Adviser V Anantha Nageswaran said at a press conference in New Delhi.

The government also hailed the schemes of Pradhan Mantri Krishi Sinchai Yojana (PMKSY), Rashtriya Krishi Vikas Yojana (RKVY), Agriculture Infrastructure Fund (AIF), and Kisan Credit Cards (KCC), in enhancing agricultural productivity, encouraging crop diversification, and increasing farm incomes.

"In Q2 of FY 2025-26, the agriculture sector registered a growth of 3.5 per cent. The decadal growth of 4.45 per cent (FY16-FY25), the highest in comparison to previous decades, has primarily resulted from the strong performance in livestock (7.1 per cent) and fishing and aquaculture (8.8 per cent), followed by the crop sector at 3.5 per cent," it noted.

"The Horticulture sector has emerged as a bright spot with approximately 33 percent of agricultural GVA. The production increased from 280.7 million tonnes in 2013-14 to 367.72 million tonnes in 2024-25," the survey pointed out.

It added that while food grain production has increased in recent years, higher-value allied sectors, such as livestock, fisheries, and horticulture, are assuming an increasingly important role in enhancing income opportunities and strengthening rural livelihoods.

"During FY15 and FY24, the livestock sector recorded a strong expansion, with its GVA increasing by nearly 195 per cent, registering a compound annual growth rate (CAGR) of 12.77 per cent at current prices. The fisheries sector has also performed well, with fish production increasing by more than 140 per cent (by 88.14 lakh tons) during 2014-2025, compared to the increase from 2004-14. Thus, allied sectors are increasingly emerging as important growth engines and key contributors to enhancing farm incomes," the government added.

In 2024-25, horticulture production reached 362.08 MT, surpassing the estimated food grain production of 329.68 MT. As of August 2025, horticulture production increased from 280.70 million tonnes in 2013–14 to 367.72 million tonnes in 2024–25.

"This expansion has been broad-based, comprising 114.51 million tonnes of fruits, 219.67 million tonnes of vegetables, and 33.54 million tonnes from other horticultural crops, highlighting the sector’s growing contribution to agricultural output and value," the survey added.

The government also noted that India is the world’s largest producer of dry onions, contributing nearly 25 per cent of global output. India also ranks second worldwide in the production of vegetables, fruits, and potatoes, accounting for around 12-13 per cent of global output in each category.

"These achievements underscore India’s strong presence in horticulture, its growing role in meeting global food demand, and the opportunities in high-value crop production," it added.

The survey also stated that several Indian states undertook targeted agricultural reforms in recent years, encompassing land governance, markets, water management, technology adoption, and crop diversification. These initiatives have improved farm outcomes, it said.