Introduction

From a traditional global supplier of staples including rice and wheat, India has been witnessing a clear structural change in its agricultural export basket emerging as a fresh powerhouse.

The evolution marks a key turning point from the cereals-dominated Green Revolution to the Golden Revolution, with fruits and vegetables taking over as the leading growth drivers.

This creation of value has led to a huge 4-fold increase in the production of horticulture commodities since 1991, reaching record levels of 367.72 million tonnes in 2024-25, firmly positioning India as the second largest global producer of horticultural commodities.

Factors driving demand for horticultural products include:

1. Changing consumer choices;
2. Rising disposable incomes, and;
3. Government support through projects such as the Integrated Development of Horticulture (MIDH).

Significantly, horticultural production recently has grown faster than food grains, pointing to a deliberate shift from mere food security to offering fruits and vegetables as a nutritional bonanza.

For Small and Marginal farmers, such diversification is crucial, providing a route to better liquidity and income realisation, significantly above the conventional crops.

By harnessing its varied topography to support a full-year crop cycle, India is not just positioning the sector as an agricultural alternative, but rather a necessary engine of sustained economic growth.

Market size

The Indian greenhouse horticulture market was estimated at US$ 1.24 billion in 2024 with a projection to reach it to US$ 3.08 billion by 2033, amounting to 148.39 % increase at a CAGR of 9.84 %.

Horticulture contributes over Rs. 1,00,000 crore (US$ 11.12 billion) in annual value and has become a key component of India’s agri-transformation journey.

This expansion is supported by a large, integrated production base, with the third advance estimate by the Ministry of Agriculture and Farmers Welfare having forecasted a rise in India’s aggregate horticulture output to 369.05 million tonnes in 2024-25 from 354.74 million tonnes in 2023-24.

The fresh food segment refers to non-preserved, perishable items requiring cold-chain management, typically including produce such as meat, seafood, dairy, and bakery products. It focuses on items with limited shelf life that are not frozen, canned, or dried. This category, which is critical for driving retail store traffic, continues to dominate domestic consumption.

The industry is undergoing a shift, driven by rising agricultural exports reaching US$ 3.8 billion in FY25, up 5.67% from the previous year and a rapidly growing food processing sector.

Major factors driving the Sector’s growth include:

1. Growing health consciousness among consumers;
2. Increasing organised retail;
3. Initiatives such as Pradhan Mantri Kisan SAMPADA Yojana;
4. Elimination of post-harvest losses, and;
5. Improvement in value addition in food & other agri produce.

India’s horticulture boom is an outcome of rising incomes and urbanization with changes in diets from cereals to vitamins and mineral rich food basket.

Specific Key factors driving the Horticulture industry include:

1. Changing food habits

Growing health awareness among the urban consumers with higher per capita income has spurred the demand for fresh fruits and vegetables throughout the year, including a surge in the consumption of exotic crops, such as avocados, broccoli, and dragon fruit that were invisible in Indian markets two decades ago.

2. Demographic and lifestyle changes

A growing young population and a rising participation of women in the workforce have modified household patterns resulting in a high demand for convenience, fuelling the market for:

• Processed and ready-to-eat products;
• Pre-cut vegetables, and;
• Processing varieties of tomatoes, potatoes, and citrus fruits.

3. Modern retail and quick-commerce

Quick-commerce platforms and modern retail channels have disrupted the supply chain. Known for delivering fresh products within minutes, these platforms have created an immediate pull for high-quality, graded perishables from farms to consumers.

4. Market potential

Although the average daily consumption of fruits and vegetables is still approximately 3.5 servings, which is less than the World Health Organization’s (WHO) recommended level, the aggregate demand for fruits and vegetables is increasing as a result of the Consumption patterns changing rapidly, especially among the wealthy leading to further market expansion.

The role of agriculture in diversification and secure livelihoods

Diversified agriculture is increasingly seen as a key strategy for improving rural livelihoods. By abandoning monoculture in favour of polyculture, farmers can reduce financial risk and create economic and ecological stability.

Government Initiative to explore ways to double farmers’ incomes

In 2016, the Government had set up an Inter-Ministerial Committee to explore ways to double farmers’ incomes. One key strategy identified was diversification into high-value agriculture, including horticulture.

Emergence of high-value crops are mainly those grown in horticulture, such as fruits, vegetables, flowers, spices, and aromatic plants. These crops yield greater market value and return per unit area compared to many field crops.

As of July 2025, under Integrated Development of Horticulture (MIDH) total 58 Centres of Excellence (CoE) have been approved across various States in the country with 55 clusters identified by MoA&FW (Ministry of Agriculture and Farmers’ Welfare) under Horticulture Cluster Development Programme (HCDP).

The government is also setting up 9 Centres for Clean Plant Programme (CPP) and 4 Post-Entry Quarantine (PEQ) facilities.

Epilogue

Farming in India is undergoing a major shift as farmers switch to high-value horticulture crops to boost their incomes. Beyond ordinary field crops, many are also discovering that fruits, vegetables, spices, and flowers offer greater profit. This transformation is actively supported by the government through various initiatives, such as the MIDH, which specifically targets higher quality, improved productivity, and better market accessibility across different crop varieties and types.

The results are evident, since India has now become the second largest global producer of fruits and vegetables with production constantly growing, boosting the agri-export. By developing Centres of Excellence and upgrading cold storage, the sector addresses key supply-chain challenges. This emphasis not only leads to higher farmer income, but also enhances the country’s food security. Finally, horticulture is important for increasing rural incomes, boosting India’s agri-export, and developing the economy.

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