Advancing Agricultural Growth in India: What Union Budget 2025-26 offers?

By
Ziraat Times
-

By: B.N. Tripathi – Vice Chancellor, SKUAST-Jammu

The Union Budget of India serves as a comprehensive financial roadmap, outlining revenue sources and planned expenditures to drive economic growth, development, and welfare initiatives. Recognizing agriculture as the ‘first engine’ of national progress, the Finance Minister has prioritized this sector to ensure sustainable livelihoods and food security.

Contributing approximately 15-18% to the GDP and employing over half of India’s workforce, agriculture remains central to India’s financial and policy framework. The budget’s strategic investments in irrigation, mechanization, climate-resilient farming, credit access, and rural development are set to accelerate agricultural productivity and enhance farmers’ financial security.

This year’s budget is built around the empowerment of Garib (the poor), Yuva (youth), Annadaata (farmers), and Nari (women) with a strong emphasis on agriculture, entrepreneurship, tourism, and financial assistance. Through a series of targeted initiatives, the government aims to enhance productivity, promote sustainability, and drive economic inclusivity.

Transforming Agriculture: A New Vision for Annadaata

Despite significant strides in agricultural productivity through various revolutions, over 100 districts in India continue to struggle with low yields and restricted access to credit, limiting farmers’ ability to adopt modern techniques. To address this challenge, the PM Dhan Dhyan Krishi Yojana has been introduced, focusing on enhanced productivity, financial accessibility, and sustainable farming methods to uplift small and marginal farmers. Under this scheme, 1.7 crore farmers will benefit from improved crop intensity, higher yields, and expanded access to credit.

As one of the world’s largest producers and consumers of pulses—contributing nearly 25% of global output—India remains dependent on imports to bridge the domestic demand-supply gap. The Mission for Aatmanirbharta in Pulses, a six-year initiative, aims to scale up the production of key pulses like Tur, Urad, and Masoor by developing climate-resilient seeds and ensuring fair market prices. This program is set to significantly benefit smallholder farmers while reducing dependency on imports.

Additionally, to strengthen financial support for farmers, the government has expanded the Kisan Credit Card (KCC) coverage, increasing loan limits to ₹5 lakh under the Modified Interest Subvention Scheme. Complementary investments in rural infrastructure and market connectivity will streamline transportation, reduce post-harvest losses, and improve supply chains—ultimately enhancing farmer incomes and rural employment.

Sustainable Fisheries and Rural Livelihoods

A major highlight of this budget is the focus on sustainable fisheries development, particularly in India’s marine zones, including the Andaman and Lakshadweep Islands. By encouraging sustainable fishing practices in exclusive economic zones and high seas, this initiative aims to boost employment opportunities and income levels for coastal communities and fishers.

Strengthening Rural Economies: Entrepreneurship & Tourism

Beyond agriculture, the budget promotes agribusiness, rural industries, and tourism development, offering new opportunities for farmers and entrepreneurs. The establishment of a Makhana Board in Bihar will enhance production, processing, and market value, supporting local farmers and generating employment.

To further drive rural economic growth, 50 major tourist destinations will be developed in collaboration with state governments, incorporating agritourism to create employment and entrepreneurial opportunities. This initiative is designed to benefit Yuva (youth) and Nari (women) by providing financial incentives, including MUDRA loans for homestays and rural tourism ventures.

Empowering Young Entrepreneurs and Women

Recognizing the potential of startups in transforming the economy, the government has introduced measures to enhance credit access and financial security. The Credit Guarantee Cover has been expanded, doubling the available credit from ₹10 crore to ₹20 crore while reducing guarantee fees. Additionally, a ₹10,000 crore Alternate Investment Fund (AIF) has been established to support emerging enterprises, particularly those led by youth and women.

A National Push for High-Yielding Crops

A dedicated National Mission on High-Yielding Crops has been introduced to modernize agriculture, increase productivity, and ensure food security. This initiative will accelerate innovation in farming techniques, enhancing profitability for farmers while strengthening the country’s self-reliance in food production.

The Union Budget 2025-26 presents a holistic strategy aimed at boosting agriculture, supporting startups, and promoting rural development, with a strong focus on Garib, Yuva, Annadaata, and Nari. By prioritizing financial accessibility, sustainability, and infrastructure development, these measures are designed to strengthen economic resilience, enhance productivity, and foster social equity. Ensuring effective implementation and widespread outreach will be key to maximizing the impact of these initiatives, paving the way for a prosperous and inclusive agricultural economy.

 

 

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