“As we come closer to the announcement of Budget 2025, the agriculture industry, considered the backbone of the Indian economy, at this point brings us to the crossroads. Agriculture is not just an economic sector, but a way of life for the millions who do it, accounting for nearly half of the country’s workforce and a major chunk of the GDP. This has offered a unique pathway of change to tackle pressing challenges and unlock the tremendous scope of the Indian agriculture ecosystem in the budget.
A Call for Increased Investments in Agriculture
The agricultural sector in India calls for a drastic increase in its budgetary allocation, with a heavy focus on rural infrastructure, irrigation systems, as well as agricultural research and development (R&D). Such investments will, therefore, not only improve productivity but also ensure that farmers particularly smallholders have equitable access to modern farming techniques. Projects to complete irrigation systems under the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) and investment in micro-irrigation systems – such as drip and sprinkler technologies – should be the first priorities.
Empowering Farmers through Technology
Farmers are increasingly looking for smart and precision farming tools and technologies, ranging from drones to IoT, artificial intelligence, etc., promising competitive thinking towards Indian agriculture. Budget 2025 should encourage the adoption of these technologies by providing subsidies, training and affordable digital tools. By equipping farmers with technological innovations, not only will resources be utilized efficiently, but it will also enable higher yields and profits.
Improving Crop Insurance and Financial Security
Agriculture is still highly vulnerable to climate risks and market volatility. To protect farmers, there is an urgent need to expand the coverage of the Pradhan Mantri Fasal Bima Yojana (PMFBY), make the premiums affordable, and provide simple and instant delivery of claims. Besides, direct targeting of small and marginal farmers’ access to credit for investment in agriculture as well as affordable risk coverage can remove uncertainties and promote investment in agriculture.
Promoting Sustainable Farming Practices
Climate change is an increasingly urgent threat to agricultural productivity. It should be able to focus on better and climate-smart farming practices. It is essential to provide incentives for organic farming, crop diversification and development of drought- and flood-resistant crop varieties to make agriculture resilient to climate challenges.
Encouraging Value Addition and Agro-Processing
India has tremendous potential in agro-processing and value addition. Budgetary support for food processing units, supply chain modernization, and cold storage facilities will help reduce post-harvest losses and increase farmers’ incomes. Tax incentives for startups in this sector can attract private investment and create rural employment opportunities.
Focus on Women Farmers and Youth in Agriculture
Key to the future of Indian agriculture, therefore, are the women farmers and rural youth. Customized programmes for financial support, even during the plantation phase, skill development, and entrepreneurial support for women would instil them as agricultural leaders. Likewise, youth participation can be restructured and enhanced through innovation grants, incubation centers and awareness campaigns to revitalize this sector.
Pursuance of Export Booster and Market Access
In this context, India is immensely capable and has the potential to set itself up as a global agri-exporter. The government should create dedicated export portals, cut regulation, and develop a policy that supports traders dealing in high-demand crops. Strengthening integration of rural connectivity & e-NAM (National Agricultural Market) platforms will provide the farmers with access to markets and fair pricing.
Role of Allied Sectors
Allied sectors such as dairy, fisheries, poultry, etc., have enormous potential to help bolster rural incomes and employment. Feed, vaccines, and infrastructure budgetary allowances for these sectors will also promote diversification and give farmers added revenue streams.
Towards a Prosperous Agricultural Ecosystem
Budget 2025 can afford to be a gamechanger for India’s agricultural ecosystem- when we bring sustainability, inclusivity and innovation in farming at the core of agriculture policy. Which, if met, will provide the farmers community to timely tackle the pitfalls and excel on the worldwide map.
At Snail Integral Pvt. Ltd. we are focused on backing projects that advance agriculture, entrepreneurship and technology. We, as partners in this journey of transformation, look forward to policies and investments that will unleash the potential of Indian agriculture, making it stronger and more resilient than ever.”
