India’s agriculture sector remains the cornerstone of its economy; resilient, diverse, and now on the cusp of transformation. As the country moves toward modernization and sustainability, opportunities for Japanese collaboration have never been stronger.
Market Overview
The Indian agriculture sector, valued between $580–650 billion…government investments in irrigation, credit, and price support.
India is expected to sustain a 7.7% CAGR (2024–35), well ahead o…eers such as China (4.0%), Brazil (2.9%), and Indonesia (–2.9%).
Sub-Sector Landscape
Indian agriculture’s diversity presents both scale and special…lture (12.9% CAGR) are emerging as the fastest-growing segments.
Poultry: Rising protein consumption (up 7.5% since 2010) and …QSR) market (9% projected growth till 2030) are boosting demand.
Silk: Domestic growth is tied to India’s festival and wedding…demand for sustainable and biodegradable textiles fuels exports.
Japan’s technology and industrial innovation are well aligned…a’s push to modernize its food processing and agri-value chains.
Regional Insights
Agricultural output is widely distributed across India:
Uttar Pradesh (14%), Madhya Pradesh (11%), and Maharashtra (1…the national share, followed by Gujarat (8%) and Rajasthan (7%).
Regions with strong foundations in cash crops, mechanization, an…ivity offer ideal entry points for investment and collaboration.
Sector Momentum and Recent Developments
The sector continues to attract policy attention and investor interest:
- ₹1.5 lakh crore allocated in the 2025 Union Budget for sustainable agriculture (+20% YoY).
- $6.3 billion in agritech investments across 700+ deals over the past decade.
- ₹6,000 crore committed under PM Matsya Sampada Yojana for fisheries and cold chain expansion.
- India–Italy collaboration (2025) to enhance agri and renewable energy investments.
These developments underscore growing confidence in agri-tech, sustainability, and global value-chain integration.
Key Challenges
Despite its size, Indian agriculture faces persistent constraints:
- Climate risks and dependency on monsoons.
- Low mechanization levels.
- Inefficient supply chains and inadequate cold chain infrastructure—with only 10% organized coverage.
Japan’s expertise in precision logistics and energy-efficient storage can play a transformative role in addressing these gaps.
Growth Drivers
India’s agricultural growth is powered by several concurrent trends:
- Export-led growth: Agricultural exports reached $50B in 2023, projected to exceed $70B by 2025.
- High-value crop diversification: Horticulture now contributes 24% of total output.
- Digital adoption: Over 50% of farmers use online marketplaces; 80%+ are expected to adopt digital tools by 2025.
- Soil health and nutrition programs: Covering 140 million+ farmers, with biofortified crops like zinc wheat and iron rice reaching 100 million beneficiaries.
- Precision agriculture: Use of satellites, drones, IoT, and AI could boost productivity by up to 20%.
Opportunities for Japanese Firms
India’s modernization push aligns directly with Japan’s technological strengths. Four key opportunity areas stand out:
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Precision Farming & Agritech
- Investments worth USD 30–35 billion expected by 2025.
- Scope for Japanese robotics, IoT, and sensor solutions for smallholder farms (85% of Indian farmers).
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Food Processing & Value-Added Products
- Sector GVA: INR 1.92 lakh crore (2022–23), CAGR 5.4%.
- Japanese know-how in processing and packaging can add value, similar to Ajinomoto’s success in Thailand.
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Cold Chain & Logistics
- Market size: INR 1,994 billion (2024).
- Post-harvest losses: 15–20% due to poor infrastructure.
- Japanese firms like Mitsubishi Corporation have proven models for cold chain integration.
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Sustainable & Green Agriculture
- Supported by the India–Japan Fund ($600M, launched 2023).
- India’s bio-agriculture market ($536M, CAGR 10.1%) creates a platform for Japanese green tech deployment.