In a decisive move to bolster India’s agricultural sector, the Union Budget for 2025–26, presented by Finance Minister Nirmala Sitharaman, introduces a series of initiatives aimed at enhancing productivity, ensuring self-sufficiency, and improving the livelihoods of farmers. These measures reflect the government’s commitment to strengthening the backbone of the Indian economy, which employs nearly 45% of the workforce and contributes about 15% to the nation’s $3.5 trillion GDP.
Budget 2025 Highlights:
Prime Minister Dhan-Dhaanya Krishi Yojana
A cornerstone of the budget is the introduction of the Prime Minister Dhan-Dhaanya Krishi Yojana, designed to develop 100 agricultural districts across the country. This program is expected to benefit approximately 17 million farmers by providing targeted support to enhance agricultural practices and output.
Enhanced Credit Access through Kisan Credit Card (KCC)
Recognizing the critical need for accessible financing in agriculture, the government plans to facilitate short-term loans for 77 million farmers, including those involved in fisheries and dairy farming. The KCC scheme will offer enhanced loans of up to ₹5 lakh, enabling farmers to invest in quality inputs and modernize their operations.
Mission for Self-Reliance in Pulses Production
To reduce dependence on imports and achieve self-sufficiency in pulses, a six-year mission focusing on crops such as tur (pigeon peas), urad (black gram), and masoor (red lentils) has been launched. This budget 2025 initiative includes state agencies purchasing these pulses at guaranteed prices to support farmers and stabilize the market. Notably, India, the world’s largest producer and consumer of pulses, spent a record $5 billion on pulse imports in 2024, underscoring the importance of this mission.
National Mission on High-Yielding Seeds
Addressing challenges such as shrinking farmlands and erratic weather patterns, the budget announces a national mission to develop high-yielding seed varieties. This initiative aims to enhance crop resilience and productivity, ensuring food security and better incomes for farmers.
Support for Cotton Production
The government has unveiled a program to boost cotton output, particularly focusing on extra-long staple cotton. Through research and development initiatives, the aim is to increase yields and reduce the recent trend of net imports due to declining domestic production. India, the world’s second-largest cotton producer, stands to benefit significantly from this focus.
Sustaining Subsidies and Employment Programs
The budget allocates ₹4.57 trillion for subsidies on food, fertilizers, and rural employment, maintaining a similar level of spending as the previous year. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) continues to receive ₹860 billion, providing a safety net for rural workers. The fertilizer subsidy is set at ₹1.67 trillion, slightly decreased from the previous year, while the food subsidy has been marginally increased to ₹2.03 trillion.
Digital Public Infrastructure for Agriculture
Building on the success of pilot projects, the government, in partnership with states, will facilitate the implementation of digital public infrastructure (DPI) in agriculture over the next three years. This includes conducting digital crop surveys for Kharif crops in 400 districts and bringing details of 60 million farmers and their lands into comprehensive registries. The issuance of Jan Samarth-based Kisan Credit Cards will also be enabled in five states, streamlining access to credit.
Building Rural Prosperity and Resilience Programme
Aimed at key demographic groups within the rural landscape, including women, young farmers, and small-scale farmers, this program seeks to enhance rural prosperity and resilience. Leveraging the extensive reach of India Post, the initiative will facilitate financial inclusion by providing easier access to banking, insurance, and credit services for farmers.
Industry Reactions
Industry leaders and experts have lauded the budget’s balanced approach to strengthening rural infrastructure, manufacturing, and consumer spending. The focus on tax relief for the middle class, increased access to essential drugs, promotion of electric vehicle production, incentives for renewable energy, and support for the agricultural ecosystem has been well received. These measures are expected to increase disposable incomes and drive consumer demand, contributing to overall economic growth.
End Note
The Union Budget 2025-26 presents a comprehensive strategy to revitalize India’s agricultural sector. Through targeted initiatives in credit access, self-sufficiency in key crops, technological advancements, and rural development programs, the government aims to create a more resilient and prosperous agricultural landscape. These efforts are poised to not only enhance the livelihoods of millions of farmers but also strengthen the foundation of the nation’s economy.