About 55% of India’s population relies on agriculture as their main source of income, making India one of the leading players in the global agricultural industry. India is the world’s largest producer of milk, pulses, and spices. About half of the population of India is employed in the agricultural industry, which in the world has the second-largest amount of agricultural land.
And state governments are now opening up farm lands for housing development and industrial reasons. This may make this opportunity very profitable for investors who are thinking about purchasing an agricultural property in rural areas.
Current market trends and projections for farmland values:
- An effective way to diversify an investment portfolio is through agricultural property. You lower the risk involved with having a portfolio of mostly conventional investment options like stocks or real estate by including this asset class in your investing mix. One of the main advantages of purchasing agricultural land in India is that it functions as a hedge against market instability, offering stability and long-term growth potential. In 2023, investing in farmlands is going to yield favourable returns, especially when situated near forthcoming government infrastructure developments like highways and airports.
- The fact that income produced from and profits gained from selling farmland are tax-free is one of the main advantages. The Indian government understands the value of agriculture and offers numerous tax breaks and incentives to those who own property used for farming. These include attractive financing choices for agricultural projects, subsidies for irrigation and farming equipment, and exemptions from taxes on income from agricultural activities. Such assistance promotes an atmosphere that is advantageous for agricultural investments, giving investors additional financial benefits.
- Covid has taught us the importance of nature and health. In today’s time, if there is any nature-based solution that also has potential for income generation, it is Farmland. Because of the covid, more individuals than ever are aware of the need to consume healthy food. Customers are switching to organic food items as a result. Because it will also help them to increase their earnings, the growth of organic products in agricultural areas is very attractive for the investors.
- Agriculture investments may not yield profits right away, but they can be quite profitable in the long run. Be one of the early adopters to reap the greatest benefits! Investing in agriculture can offer ongoing security and the possibility of an annual income. Investors are eyeing the Agro-Realty sector as a new emerging asset. Previously interested in small-holder farms and organic orchards, they’re now attracted to large-scale commercial farmlands.
- As India is undergoing massive transformation, there are going to be a lot of changes in the social and economic demographics; hence, demand for real estate development arises. Everything, including our shelter, clothing, and eating habits, is influenced by agriculture, either directly or indirectly.
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