Agriculture to Drive Economic Growth in Budget 2025-26

The Union Budget 2025-26 has placed a strong emphasis on the agriculture sector, recognizing its pivotal role in driving economic growth and ensuring rural prosperity. Finance Minister Nirmala Sitharaman, in her budget speech, announced several key initiatives aimed at enhancing credit accessibility, boosting production, and promoting sustainable farming practices. The comprehensive package is expected to significantly improve farmers' financial stability and enhance India's position in global agricultural markets.

Major Announcements for the Agriculture Sector
1. Expansion of the Kisan Credit Card (KCC) Scheme
•    The loan limit under the Kisan Credit Card (KCC) has been increased from ₹3 lakh to ₹5 lakh, providing relief to small and marginal farmers.
•    Over 88 lakh farmers are expected to benefit from easier access to affordable credit.
2. Investment in Agricultural Infrastructure
•    The government has allocated ₹1.77 lakh crore for rural and agricultural development.
•    A major portion of this fund will be directed towards irrigation projects, soil health improvement, and the development of digital agricultural platforms.
3. Focus on Sustainable and Climate-Resilient Farming
•    Special funds have been introduced to promote organic farming, water conservation, and sustainable agricultural practices.
•    Investments will be made in AI-driven technologies to enhance efficiency and productivity in farming.
4. Strengthening Agricultural Export Market
•    The budget includes provisions for modernizing storage and logistics to reduce post-harvest losses and boost agricultural exports.
•    Special measures will be taken to position India as a key player in global agri-trade.
5. Increased Financial Support for Rural Development
•    The government has allocated ₹86,000 crore for various rural development programs, including irrigation and infrastructure expansion.
•    These measures align with the government’s long-term goal of doubling farmers' income and improving rural employment opportunities.
Targeted Benefits for Farmers
1. Agricultural Credit Expansion
•    The revised KCC limit of ₹5 lakh will benefit 7.7 crore farmers, including those engaged in beekeeping and dairy farming.
•    Easier access to affordable credit will ensure better financial security for farmers across India.
2. Strengthening Rural Agricultural Infrastructure
•    ₹500 crore has been allocated for a five-year Cotton Productivity Mission to improve quality, increase yield, and modernize farming techniques.
•    The Pradhan Mantri Dhan-Dhanya Yojana will be expanded to cover more agricultural districts, benefiting 1.7 crore farmers.
3. National High-Yield Seed Mission
•    The government will launch a dedicated mission to promote high-quality, genetically superior seeds to enhance crop productivity and exports.
4. Self-Sufficiency in Pulses
•    A six-year initiative has been announced to boost the production of key pulses such as tur, urad, and masoor.
•    Special incentives will be provided to farmers growing pulses to ensure domestic supply stability.
5. Bihar Mega Agricultural Board
•    A special board will be established for Bihar to support production, processing, value addition, and marketing of agricultural products.

Cotton Production Boost and Crop Insurance Reforms
•    The government will invest ₹500 crore in a five-year mission to enhance cotton yield and improve textile quality.
•    Modern scientific farming methods will be adopted to increase farmers' income and export potential.
To safeguard farmers from climate-related risks, the government has also introduced major reforms in crop insurance:
•    Affordable Premiums: Subsidized insurance premiums will make coverage more accessible.
•    Quick Compensation: Farmers will receive faster payouts for crop damages.
•    Financial Security: The scheme aims to minimize losses and provide economic stability to farmers.

Economic Impact of the Agriculture Budget
With these initiatives, the Union Budget 2025-26 aims to fortify India's agrarian economy, ensuring financial stability for farmers while driving national economic growth. Enhanced credit access, robust infrastructure development, and strategic investments in technology and exports are expected to create rural employment opportunities, increase productivity, and strengthen India's global agricultural footprint.