Recognising agriculture’s pivotal role, the budget allocation for the Department of Agriculture and Farmers’ Welfare has surged exponentially—from Rs 11,915.22 crore in 2008-09 to Rs 21,933.50 crore in 2013-14, reaching an unprecedented Rs 1,22,528.77 crore in 2024-25

Byline: Neeraj Sehrawat, National In-charge – Research & Policy, Kisan Morcha BJP

Invoking the timeless words of Telugu poet Shri Gurajada Appa Rao—”A nation is its people, not just its land”—the Union Finance Minister unveiled the Union Budget 2025-26, anchored in the principle of “Sabka Vikas.” This budget reaffirms the government’s steadfast commitment to balanced, inclusive growth, driving prosperity across all regions and demographics. With a laser focus on Garib (poor), Yuva (youth), Annadata (farmers), and Nari (women), it introduces bold reforms in taxation, energy, infrastructure, mining, finance, and regulatory policies—strengthening India’s global competitiveness. Agriculture, MSMEs, investment, and exports remain the key pillars of Viksit Bharat, propelled by transformative policies and unwavering commitment to economic resilience.

A Resilient and Thriving Agricultural Sector
Agriculture is the backbone of India’s economy, ensuring food security, employment, and rural prosperity. Over half the population relies on agriculture, and the government has consistently prioritised this sector through progressive policies and record budgetary allocations, translating into higher productivity, improved farmer incomes, and enhanced rural infrastructure.

Historic Budgetary Support for Agriculture
Recognising agriculture’s pivotal role, the budget allocation for the Department of Agriculture and Farmers’ Welfare has surged exponentially—from Rs 11,915.22 crore in 2008-09 to Rs 21,933.50 crore in 2013-14, reaching an unprecedented Rs 1,22,528.77 crore in 2024-25. This tenfold increase underscores the government’s resolve to fortify Indian agriculture and uplift millions of farmers.

Unprecedented Growth in Food Grain Production
India has witnessed a dramatic rise in food grain production, fuelled by strategic policy interventions and modern farming techniques. From 204.6 million tonnes in 2004-05 to 252 million tonnes in 2014-15, the output is now projected to touch 332.3 million tonnes in 2023-24. This surge has cemented India’s food security while curbing inflationary pressures.

Expanding Cropped Area and Economic Contribution
The total area under food grain cultivation has expanded from 120.2 million hectares in 2004-05 to 132.1 million hectares in 2023-24. Simultaneously, the real Gross Value Added (GVA) in agriculture, forestry, and fishing has jumped from Rs 13.85 lakh crore in 2004-05 to Rs 26.42 lakh crore in 2023-24—reinforcing agriculture’s growing economic significance.

Strengthening Farmers’ Income through MSP Hikes
The government’s commitment to farmers is evident in the sharp rise in Minimum Support Prices (MSP). For paddy (common), MSP has increased from Rs 850 per quintal in 2008-09 to Rs 2,300 per quintal in 2023-24, while for wheat, it has grown from Rs 1,080 per quintal to Rs 2,425 per quintal. The financial outlay for MSP payments has also skyrocketed—from Rs 4.40 lakh crore (2004-13) to Rs 12.51 lakh crore (2014-24) for paddy and from Rs 2.27 lakh crore to Rs 5.44 lakh crore for wheat in the same period—ensuring stable and enhanced farmer incomes.

Direct Financial Support: PM-KISAN’s Game-Changing Impact
Since its inception in 2019, the PM-KISAN scheme has transformed rural financial stability, directly transferring over Rs 3.46 lakh crore to more than 11 crore farmers in 18 installments—boosting their purchasing power and economic security.

Empowering Farmers with Crop Insurance and Credit
The Pradhan Mantri Fasal Bima Yojana (PMFBY) has revolutionised crop insurance, with 63.11 crore farmer applications enrolled and claim settlements exceeding Rs 1.65 lakh crore. For every Rs 100 paid in premium, farmers have received approximately Rs 508 in claims—offering a critical safety net against agricultural risks.

Institutional credit for farmers has surged nearly threefold—from Rs 8.5 lakh crore in 2014-15 to Rs 25.48 lakh crore in 2023-24. The Kisan Credit Card (KCC) scheme has expanded access to credit, benefiting small and marginal farmers. The percentage of such farmers availing agricultural loans has grown from 57 per cent in 2014-15 to 76 per cent in 2023-24, ensuring greater financial inclusion.

Market Reforms: Digital Integration through e-NAM
The National Agriculture Market (e-NAM) has revolutionised agrarian trade, linking 1,410 mandis across 23 states and 4 Union Territories. With 1.79 crore farmers and 2.63 lakh traders registered, transactions worth Rs 4.01 lakh crore have been facilitated—ensuring better price realisation and eliminating middlemen inefficiencies.

Building World-Class Agricultural Infrastructure
The Agricultural Infrastructure Fund (AIF), with a Rs 1 lakh crore corpus, has significantly enhanced post-harvest management and community farming assets. As of December 2024, Rs 52,738 crore has been sanctioned for 87,548 projects, driving Rs 86,798 crore in investments for cold storage, warehousing, and processing units.

Millets: India’s Superfood Revolution
Recognising the health and economic benefits of millets, the government has launched the International Year of Millets initiative, backed by a Rs 250 crore (2023-26) budget. Millet production has surged to 175.72 lakh tonnes in 2023-24, with a 7 per cent increase in productivity since 2019, positioning India as a global leader in climate-resilient and nutrient-rich crops.

A Bold Vision for Indian Agriculture
India’s agricultural transformation over the past decade has been remarkable. Increased budgetary support, groundbreaking policy reforms, digital integration, and infrastructure development have strengthened the sector. As we move forward, sustained innovation, strategic investments, and policy continuity will be crucial to maintaining agriculture’s central role in India’s economic and social fabric.

A Budget for a Resurgent India
This budget is a catalyst for a self-sufficient, globally competitive India. It embodies the aspirations of 1.4 billion citizens and charts a bold roadmap to realising them. By empowering farmers, youth, women, and MSMEs, the government is ensuring inclusive and equitable progress. Under the visionary leadership of Prime Minister Narendra Modi, India stands on the brink of a transformative era. As we march toward Viksit Bharat 2047, this budget is not merely an economic statement—it is a powerful declaration of national progress and collective prosperity.