PESTEL ANALYSIS- AGRICULTURAL

INDUSTRY IN INDIA

-VIKAS CHAUDHARY
MARKET OVERVIEW

Agricultural Importance In Economy

• 58% of rural household depends on agriculture
• Largest contributor to country’s GDP
• 4th Largest exporter of principal commodities
• 2nd fruit producer in the world
• 3rd in agricultural output
SEGMENTS IN AGRICULTURAL INDUSTRY

• Food industry
• Fisheries , meat and poultry
• Pesticides and Fertilizers
• Flower industry
CURRENT MARKET SIZE AND GROWTH RATE
• Agricultural sector accounts for 18% of India’s GDP and provides
employement to 50% of country’s workforce.
• Foodgrain production in FY2017- 2018 was 284.83 million tonnes.
POLITICAL
FACTORS: IMPACTS:

• The National Food Security Mission

NFSM launched 2007-2008
• “Per drop, More crop” micro finance
project by NABARD (Natiional Bank
for Agriculture and Rural
Development)
• Rastriya Vikas Krishi Yojana another
Government initiative.
• Programs intiated by government to
educate farmers to increase yield
• By end of 12th term ,2018-2019 the
foodgrain production recorded as
284.83 million tonnes.
• With private sector support increase
in production better results can be
expected (Fruits, wheat , rice
farming)
• The private sector can plays decisive
roles in india’s agricultural
transformation by fostering
improvements and creating jobs and
value in supply chain from farm to
fork
• Private sector as startup to extent
support with government support to
train farmers new practices in major
farming states like Haryana, Punjab
& Uttar Pradesh and extend the
trial projects further.
 ECONOMICAL
FACTOR IMPACT

• GST (Goods and Services Tax)
implementation in 2017
• Short crop loan up to 3,00,000 INR
to farmers.
• Prices for irrigation and farming
machinaries increased with 5% to
12% GST imposed made farmers
to think twice to buy such
resources.
 SOCIAL

FACTOR IMPACT

• 16% of world population on 2.4% • Farmer suicides

of land resources • Degraded soil results in low crop
• Use of agricultural lands for prodction.
factories setup for production.
TECHNOLOGICAL
FACTORS IMPACTS
• Farming machineries training testing
• With right machinaries the chance of
centers
late harvesting can avoid crop damage.
• Drip irrigation system
• Better utilisation of water with least
• Farmer’s (Kissan) call centers for wastage and more yield.
techinical/mechanical support and
• Health issues from pesticides can be
farming advice.
prevented.
• Provide agricultural machineries and
tractors on low renting basis for farmers
who cannot afford such tools.
• Use of commercial drones for spray of
pesticides.
 LEGAL
FACTORS IMPACTS

• Destructive insects/pests Act 1994 to • Use of less pesticides by farmers.

ristrict unwated crop diseases from • Prevent misuse of agricultural lands.
other countries.
• Legal support for farmers in case of
illegal land grabs by corporations.
ENVIRONMENTAL

• Depedency on Monsoon.
• Avoid burning of leftover after harvesting to avoid air pollution.
• Prevent soil deterioration owing to erosion empowering government to take up
early anti soil – erosion measures.
 CONCLUSION:

• Most of the population is directly or indirectly attached to agriculture industry

and some are involved in doing business with these goods. To increase in
agricultural production by brining more area under cultivation, create
employement , extentsion of irrigation facilities by private sectors, better
cropping practices and agricultural research. All the five factors i.e. Political,
Economical, Social, Technological, Legal and Environmental need to be
addressed properly.