It is estimated that agribusinesses contribute about 30 percent to the gross domestic product of India, with the agricultural sector employing the largest percentage of the workforce (approximately 45.5 percent, according to a recent survey by the Labor Bureau). Agribusiness continues to be a powerful growth engine for the Indian economy. SMEs will play a key role in the segment, reaping the fruits of the plethora of opportunities the segment.
- Definition / Scope
- Market Overview
- Market Risks
- Market Drivers
- Market Restraints
- Industry Challenges
- Technology Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Competitive Landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
As India’s economy transcends its US$ 2 trillion benchmark, agriculture is moving towards agribusiness. India, with the world's second largest arable land, and with diverse agro-climatic zones across the country, has tremendous agricultural production advantages, with the potential to grow a wide range of agricultural products.
This strong agricultural base provides a large and varied foundation of raw materials for food processing. If optimally leveraged, these benefits may lead to India becoming the world's leading food supplier.
In most developing countries, small and medium enterprises (SMEs) are considered essential for economic progress. In developing Asian countries such as India, SMEs have made considerable contributions in terms of employment and GDP growth.
The importance of small and medium-sized businesses to developing countries has been well documented and studied. This study by numerous researchers is a testament to the relevance of SMEs, particularly in the rural economy. Research indicates that 80-90 percent of all businesses are made up of SMEs and generate about 50-80 percent of overall employment in developing Asia.
There is a growing sub-set of enterprises within the category of SMEs that give special priority to achieving financial as well as social and environmental returns.
These enterprises are referred to as Social Enterprises (SEs), and while a nascent form of business, SEs are increasingly recognized in the development space as potential game changers. Because SEs have the purpose of producing measurable social and/or environmental outcomes and financial returns intentionally, they hold the promise of scalability beyond donor funding.
In India, because agriculture is such an important sector, SMEs associated with agriculture are defined as those enterprises operating within the value chain of agriculture. These may include individual farmers and producers.
Figure: Agribusiness Value Chain in India