The Union Budget 2026-27 in India has shifted towards crop-specific and regionally aligned strategies to boost high-value agriculture, as per government statements. The agricultural sector in India saw significant growth over the last decade, reaching 4.45 percent, with the country ranking second globally in coconut production. Approximately 30 million people, including nearly 10 million farmers, depend on the coconut production sector for their livelihoods.
Targeted interventions have been outlined in the recent budget to support various crops in different regions. These include initiatives for coconut, sandalwood, cocoa, and cashew in coastal areas, agarwood cultivation in the North Eastern States, and premium nuts like almonds, walnuts, and pine nuts in hilly regions. Horticultural production has notably increased from 277.35 million tonnes in 2013-14 to 370.74 million tonnes in 2024-25 over the past decade.
India holds the second position globally in the production of vegetables, fruits, and potatoes, with fruits representing 9.18 percent and vegetables 8.18 percent of global production. The country is also the largest producer of onions and shallots, contributing around 22.42 percent to global production. Tamil Nadu leads in coconut production, while Andhra Pradesh, West Bengal, and Tamil Nadu excel in productivity, showcasing diverse strengths in coconut production across different states in India.
The coconut sector in India is not only crucial for primary production but is also becoming a significant contributor to agricultural exports. This aligns with the government’s vision of achieving $2 trillion in exports by 2030 and $21 trillion by 2047. As of January 2026, India boasts approximately 150 million agarwood trees, with the majority situated in the North Eastern states under plantation and agroforestry systems.
