On February 12th 2004 the Associated Chambers of
Commerce and Industries of India organised a seminar
on „Economic Growth Structure“ for India. For financial
year 2003 - 2004 a GDP growth of 8,1 % is expected
by the Central Statistical Organisation (CSO).

The Government of India has expressed confidence in
sustaining this strong growth. „The growth rate in GDP
is most certainly sustainable. The kind of steps and
economic initiatives taken by the Government in the
budget and the various packages announced are aimed
at making sure that the growth is sustained“ Dr. Narayan,
Economic Advisor in the Prime Minister’s Office, said.

One of the fastest growing sectors will remain the food
industry: About 5.000 rural clusters have been identified
to become so called growth clusters which will speed up
food processing industry as well as food retail industry.

New Delhi, February 14th. 2004

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India is an of the most interesting and fastest growing markets in Asia. Here are some basic facts:

• India is the 7th largest country in the world
• Over 1 billion inhabitants
• Population growth: 1,47% p.a.
• 32,2% of the population are less than 15 years old and 63% are between 15 and 64 years old (median age by 24,1 years)
• Capital: New Delhi (18,1 mill. inhabitants)
• India is structured in 28 states and 7 territories.
• Indian exports add up to $ 52,2 billion, the imports add up to $ 59,39 billion.
• The economy has posted an excellent average growth rate of 6% since 1990 (8% expected for 2003/04)

India's economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of support services.

The most export commodities are textile goods, gems and jewelry, engineering goods, chemicals and leather manufactures.

The most import commodities are machinery, crude oil, gems, fertilizer and chemicals, especially in use for agri-/horticulture products.

The Indian labor force is about 406 million employees – 60% of them are employed in the agriculture-sector, 17% in the industrial sector and 23% belong to services.

The agriculture sector amounts 25% of the Indian economy. The remaining 75% are divided into 25% industrial sector and 50% service sector.

The main products within the agricultural sector are rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes; cattle, water buffalo, sheep, goats, poultry and fish.

Furthermore India is the second largest producer of fruits and vegetables just behind china. India leads in terms of production of mangoes, bananas and spices (such as black pepper, chili, turmeric, celery). Some of the high yielding fruits in India are apples, citrus fruits, grapes, litchi, mangoes, papaya and pineapples. India is the world largest producer of mango and contributes to around 52% of world’s mango production. Predominantly mangoes are cultivated in Andhra Pradesh, followed by Uttar Pradesh and Bihar.

The Food Processing Industry sector in India is one of the largest in terms of production, consumption, export and growth prospects. The Government has accorded it a high priority, with a number of fiscal reliefs and incentives to encourage commercialization and value addition to agricultural produce; for minimizing pre/post harvest wastage, generating employment and export growth.

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India with diverse soil and climate comprising several agro-ecological regions provides ample opportunity to grow a variety of horticulture crops. These crops form a significant part of total agricultural produce in the country comprising of fruits, vegetables, root and tuber crops, flowers, ornamental plants, medicinal and aromatic plants, spices, condiments, plantation crops and mushrooms.
It is estimated that all the horticulture crops put together cover nearly 116 million hectares area with an annual production of 91 million tons. Though these crops occupy hardly 7% of the cropped area they contribute over 18% to the gross agricultural output in the country.
Horticultural crops play a unique role in India’s economy by improving the income of the rural people. Cultivation of these crops is labor intensive and as such they generate lot of employment opportunities for the rural population. Thus, cultivation of horticultural crops plays a vital role in the prosperity of a nation and is directly linked with the health and happiness of the people.

Fruits and vegetables are not only used for domestic consumption and processing into various products (Pickles, preserves sauces, jam, jelly, etc.) but also substantial quantities are exported in fresh and processed form, bringing much-needed foreign exchange for the country. These groups of crops also provide ample scope for achieving bio-diversity and diversification to maintain ecological balance and to create sustainable agriculture and can make an impact on the national economy in the years to come.

India with more than 28.2 million tons of fruits and 66 million tons of vegetables is the second largest producer of fruits and vegetables in the world next only to Brazil and China. However, per capita consumption of fruits and vegetables in India is only around 46kg and 130g against a minimum of about 92kg and 300g respectively recommended by Indian Council of Medical Research and National Institute of Nutrition, Hyderabad. With the present level of population, the annual requirement of fruits and vegetables will be of the order of 32.58million tons and 83million tons respectively. To meet this requirement the National Commission on Agriculture has projected an area of 4million hectares and 8million hectares under fruits and vegetable crops.

It is estimated that India has 240 million acres of cultivable wasteland, which is lying idle, which can be brought under orchard crops without curtailing the area under food crops. The country has abundant sunshine throughout year, surplus labor and widely varied agro-climatic conditions, which offers high potential for successful and profitable commercial horticulture.

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