Agricultural production in India is an important determinant of overall economic growth and a huge employer of the rural populace. Total food grain production, for instance, in 2004/2005 (April-March) amounted to 206.4million tones, including 87.8 million tones of rice and 73.0 million tones of wheat (Country Report, 2005).However, yields per hectare remain low by international standards. Other major crops grown include oilseeds,cotton, pulses, sugar, tea, coffee, rubber, jute and potatoes. The recent slowdown in the sector is a cause for concern and calls for a change in the government’s agricultural policy. Some academic research suggests that inorder for India to sustain GDP growth of around 7 percent or more, agriculture has to grow at, or in excess of, 4percent (India Economic Survey, 2004; Sinha, 2005; Nilekani, 2006).
The following management report attempts to analyse the agriculture sector in India, assessing the affect of external and internal factors on the industry. SWOT analysis framework is employed to give a more in-depthstrategic insight into the sector’s current development, emphasising its internal strengths, weaknesses, andexternal opportunities and threats. The application of PEST analysis involves the assessment of industry’sexternal environment of political, economic, social and technological conditions that have a direct impact on theperformance of the industry and its future development. The significant part of the report is also devoted to thecritical evaluation of ecological factors impacting the agricultural sector, examining industry’s responses andimprovements for its sustainable growth.