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  3. India's agriculture sector growth likely to be lower at 4% in FY26: Niti Aayog member

India's agriculture sector growth likely to be lower at 4% in FY26: Niti Aayog member

09 Dec 2025 Evaluate

Member of government think tank Niti Aayog, Ramesh Chand has said that India's agriculture sector growth is likely to be lower at 4 per cent in the financial year 2025-26 (FY26) compared to the rate of 4.6 per cent recorded in the previous fiscal. He added that it is difficult to attribute reasons for lower growth at this point of time. He noted that the agri growth keeps fluctuating as base effect is low. The flood impact in Punjab is only in a limited area, and that is unlikely to bring down the state's growth.

He highlighted that ‘Looking at the first half of FY 2025-26 growth figures for agriculture sector, the second half will be normal’. Farm growth was estimated at 3.7 per cent in the first quarter and 3.5 per cent in the second quarter of the current fiscal year. In 2024-25, overall farm growth reached 4.63 per cent. He said India's agricultural growth has reached a historic high of 4.6 per cent over the past decade, surpassing China's farm sector growth rate. However, he noted that the country needs to achieve a 5 per cent growth in agriculture to support its goal of becoming a developed nation. 

He said India could learn from China's intensive farming methods, noting that Chinese farmers use more than twice the fertilizer India does while managing to avoid adverse environmental consequences. He identified several growth drivers, including increasing crop intensity, expanding irrigation, and narrowing yield gaps between states. Some states achieve corn yields of 70 quintals per hectare while others manage only 25 quintals. He said with a 5 per cent growth, India could triple its agricultural GDP faster than the 24-25 years needed at current rates, and added that this would help achieve the broader goal of making India a $30-trillion economy.

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