2/24/2017 USDAERSIndia

UnitedStatesDepartmentofAgriculture(https://www.usda.gov)
EconomicResearchService(/)

Overview
Indiaistheworld'ssecondmostpopulouscountryanditsfastestgrowingmajoreconomysince2000.Itisalso
amongtheworld'slargestproducersandconsumersofarangeofcropandlivestockcommodities,andranked
17thasanagriculturalimporterand13thasanexporterduring201113.Whilestillclassifiedasalowermiddle
incomecountry,rapideconomicgrowthisexpandinganddiversifyingfooddemand,pressuringthefarmsector
toboostcurrentlylowlevelsofproductivity,andchallengingagriculturalpoliciestraditionallyfocusedonself
sufficiency.

TheERSoutlookandresearchprogramsfocusonunderstandingthesupply,demand,andpolicyfactorsthat
influenceIndia'sbehaviorinworldmarketsforcommoditiesimportanttoU.S.agriculture.Inaddition,because
Indiaaccountsforthelargestshareoftheglobalpopulationclassifiedasfoodinsecure,ERSresearchaddresses
questionsrelatedtothemeasurementandcausesofhouseholdfoodinsecurityinIndia.Acompletelistof
recentERSreportsandarticlesisavailablehere(/topics/internationalmarketstrade/countries
regions/india/readings/).

RecenttrendsinIndia'sagriculturaleconomy

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India'sagriculturalperformancesince1980suggeststhatincreasesinproductivityhavespreadfromthe
northerngrainbelt,ledbyacceleratedgrowthinproductionofhorticultureandanimalproducts(see
PropellersofAgriculturalProductivityinIndia(/publications/pubdetails/?pubid=45509)(December2015)and
"India'sAgriculturalGrowthPropellers(/amberwaves/2016/april/indiasagriculturalgrowthpropellers/)"(Amber
Waves,April2016).(Chart#1,below)
Indiaislikelytoremainanimportantplayeringlobalagriculturemarketsasanimporterofvegetableoilsand
pulses,andanexporterofrice,cotton,andbeef(see"FoodPolicyandProductivityKeytoIndiaOutlook
(/amberwaves/2015/july/foodpolicyandproductivitykeytoindiaoutlook/)"(AmberWaves,July2015).(Chart#
2,below)
InregionsofIndiaaffectedthemostbyadramaticsurgeinglobalfoodpricesseveralyearsago,households
copedbysacrificingdietdiversityaswellasexpendituresonmedicalexpensesanddurablegoods(seeCoping
StrategiesinResponsetoRisingFoodPrices:EvidenceFromIndia(/publications/pubdetails/?pubid=45295)
(November2014).
Despiteprogress,Indiastillaccountsforthelargestshareoftheworld'sfoodinsecurepopulation.Thenew
NationalFoodSecurityActincreasesthehouseholdseligibleforsubsidizedfoodgrains,butquestionsremain
onitsimpact(see"IndiaContinuestoGrapplewithFoodInsecurity(/amberwaves/2014/januaryfebruary/india
continuestograpplewithfoodinsecurity/)"(AmberWaves,February2014).
Analysisofhouseholddatafoundsignificantdifferencesincaloriesconsumedandthenumberoffoodinsecure
peopleunderalternativeplausibleestimatesofthecaloriecontentofsomefoodsandofmealseatenoutsidethe
household(seeEstimatingtheRangeofFoodInsecureHouseholdsinIndia(/publications/pubdetails/?
pubid=44972)(May2012).
ReformsthatimprovetheefficiencyofIndia'sagriculturalmarketscouldgenerateeconomywidegainsin
outputandwages,raiseagriculturalproducerprices,reduceconsumerfoodprices,andincreaseconsumption,
particularlybylowincomehouseholds(seeGrowthandEquityEffectsofAgriculturalMarketingEfficiency
GainsinIndia(/publications/pubdetails/?pubid=46332)(December2009).
Anarrayofpoliciesandregulationsaffectingagriculturalproduction,marketing,andfoodprocessingalong
withweakinfrastructureandalackofmarketserviceshavediscouragedprivateinvestmentbyfarmersand
large,verticallyintegratedagribusinesses(seeTheEnvironmentforAgriculturalandAgribusinessInvestment
inIndia(/publications/pubdetails/?pubid=44252)(July2008).
Pronouncedmarketcycles,budgetaryconcerns,anddeclinesinpercapitaconsumptionofIndia'smajorfood
staples,wheatandrice,arecreatingpressureforIndianpolicymakerstoadjustlongstandingpolicies(see
IndianWheatandRiceSectorPoliciesandtheImplicationsofReform(/publications/pubdetails/?pubid=45816)
(May2007).
Hightariffsonoilseedsandoilaffordslittlebenefittooilseedproducersandimposehighcostsonconsumers.
LowertradebarrierscouldencourageIndiaprocessorstoboostcapacityutilizationwithimportedoilseeds,
resultinginlowerprocessingcosts,andincreasednetrevenuesandemployment(seeTheRoleofPolicyand
IndustryStructureinIndia'sOilseedMarkets(/publications/pubdetails/?pubid=45242)(April2006).

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Downloadhigherresolutionchart(2079pixelsby1666,300dpi)
(/webdocs/charts/indiaagriculturalimportspng/indiaagriculturalimports.png?v=42536)

Downloadhigherresolutionchart(2079pixelsby1666,300dpi)
(/webdocs/charts/indiancropyieldsbelowworldavgpng/indiancropyieldsbelowworldavg.png?v=42536)

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Downloadhigherresolutionchart(2079pixelsby1666,300dpi)
(/webdocs/charts/agoutputshareslivestockhorticulturalcropsindiapng/agoutputshareslivestockhorticulturalcrops
india.png?v=42536)

RelatedReports (#)

ChangingCropAreaintheFormerSovietUnionRegion(/publications/pubdetails/?pubid=82572)USDA
AgriculturalProjectionsto2026(/publications/pubdetails/?pubid=82538)RiceOutlook:February2017
(/publications/pubdetails/?pubid=82476)RiceOutlook:January2017(/publications/pubdetails/?pubid=82108)
China'sPorkImportsRiseAlongwithProductionCosts(/publications/pubdetails/?pubid=81943)Seeall
(/publications/?topicId=14836)

RelatedAmberWavesArticles (#)

U.S.MexicoAgriculturalTrade:OpportunitiesforMakingFreeTradeUnderNAFTAMoreAgile(/amber
waves/2016/august/usmexicoagriculturaltradeopportunitiesformakingfreetradeundernaftamoreagile/)
SanitaryandPhytosanitaryMeasuresandTechnicalBarrierstoTrade:HowMuchDoTheyImpactU.S.EU
AgriculturalTrade?(/amberwaves/2016/august/sanitaryandphytosanitarymeasuresandtechnicalbarriersto
tradehowmuchdotheyimpactuseuagriculturaltrade/)OilPricesandEthanolDemandDriveChangesin
AgriculturalCommodityProductioninBrazil (/amberwaves/2016/july/oilpricesandethanoldemanddrive
changesinagriculturalcommodityproductioninbrazil/)IndiaEmergesasaMajorBeefExporter(/amber
waves/2016/july/indiaemergesasamajorbeefexporter/)FoodSecurityofDevelopingCountriesExpectedTo
ImproveThrough2026asFoodPricesFallandIncomesRise(/amberwaves/2016/june/foodsecurityof
developingcountriesexpectedtoimprovethrough2026asfoodpricesfallandincomesrise/)Seeall(/amber
waves//allarticles/?topicId=14836)

RelatedData(#)

InternationalAgriculturalProductivity(/dataproducts/internationalagriculturalproductivity/)International
BaselineData(/dataproducts/internationalbaselinedata/)InternationalFoodConsumptionPatterns(/data

https://www.ers.usda.gov/topics/internationalmarketstrade/countriesregions/india/ 4/5
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products/internationalfoodconsumptionpatterns/)InternationalMacroeconomicDataSet(/data
products/internationalmacroeconomicdataset/)InternationalFoodSecurity(/dataproducts/internationalfood
security/)

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