Agricultural sector growth likely to decline slightly

10-Dec-2025 04:13 PM

New Delhi. The growth rate of agriculture and allied sectors was recorded at 4.6 percent during the financial year 2024-25, but it is expected to decline to around 4 percent in the current financial year 2025-26. A NITI Aayog member said that it is difficult to pinpoint a concrete reason for the decline in growth, but it is believed that agricultural growth fluctuates due to a weakening of the baseline.

Punjab experienced severe floods this year, but their impact will be limited, and it is unlikely that it will impact the state's agricultural growth rate. Floods were also experienced in some other states, including Maharashtra, Rajasthan, and Telangana.

The NITI Aayog member stated that based on the growth figures for the agricultural sector during the first half of 2025-26, it appears that the second half will be normal, but the decline in growth will not be fully compensated.

Industry and trade analysts say that if the weather becomes unfavorable in January-February due to the influence of La Nina weather cycle and solar vortex, then Rabi crops may be damaged.

It is noteworthy that for the current financial year 2025-26, the growth rate of agriculture sector is estimated to be 3.7 percent in the first quarter (April-June) and 3.5 percent in the second quarter (July-September).

This growth rate was estimated to be 4.63 percent for the entire period of financial year 2024-25. Rabi crops are being sown well and the production of fruits, vegetables, spices and other plantation and horticulture crops is being closely monitored.