Introduction Agriculture is not just a sector in India — it’s a way of life for over 50% of the population, contributing around 18% to the GDP. With climate change, rising input costs, and fragmented markets as persistent challenges, the Union Budget 2025–26 brings renewed hope. This year’s budget reflects a clear shift from input-intensive to income-oriented agriculture, focusing on technology, sustainability, and rural entrepreneurship.
This article takes a deep dive into the key agricultural announcements, compares five years of budget trends, and outlines how this budget creates growth opportunities for farmers, agri-tech players, and rural youth.
Key Budget Allocations and Announcements
- Total Allocation to Ministry of Agriculture & Farmers’ Welfare
- 2024–25 (RE): ₹1.25 lakh crore
- 2025–26 (BE): ₹1.39 lakh crore
- Growth: ₹14,000 crore (~11.2%)
- PM-KISAN Scheme
- ₸62,000 crore allocated (same as previous year)
- Over 11 crore farmers continue to receive ₹6,000 annually in three installments
- Digital Public Infrastructure for Agriculture (DPIA)
- ₹6,000 crore to build farm-level digital databases and climate-smart dashboards
- Pilot projects in Maharashtra, Karnataka, and Odisha show 30% increase in yield with AI-led advisories
- Agri-Startups and Youth in Farming
- ₹7500 crore earmarked under the RKVY scheme to incubate 5,000 agri-startups
- 100 Farmer Producer Organizations (FPOs) to be digitally onboarded monthly
- Sustainable and Organic Farming
- Allocation of ₹2000 crore for National Mission on Natural Farming (NMNF)
- Focus on zero-budget farming, millet promotion, and reduction of chemical fertilizers
Comparative Budget Analysis (Last 5 Years)
| Year | Agriculture Budget (MoAFW) | YoY Growth | PM-KISAN Outlay | Notes |
| 2021–22 | ₹1.23 lakh crore | — | ₸65,000 crore | Major boost post-COVID |
| 2022–23 | ₹1.24 lakh crore | +0.8% | ₸67,500 crore | Digital inclusion push begins |
| 2023–24 | ₹1.25 lakh crore | +0.8% | ₸60,000 crore | Plateau in subsidies, focus on tech |
| 2024–25 | ₹1.25 lakh crore (RE) | No change | ₸60,000 crore | Emphasis on millet & organics |
| 2025–26 | ₹1.39 lakh crore (BE) | +11.2% | ₸62,000 crore | DPIA and FPO digitalization focus |
What Sets This Budget Apart
- From Subsidy to Sustainability: There is a visible shift from direct subsidies to support for digital infrastructure, soil health, and climate-resilient farming.
- Empowering Youth: By combining agri-tech with startup culture, rural youth have better prospects in farming than ever before.
- Digital Farming Ecosystem: Precision agriculture, crop monitoring via drones, and direct market linkages are becoming mainstream.
Case Study: Fasal, Bengaluru-Based Agri-Tech Startup
Fasal uses IoT sensors to help grape and pomegranate farmers monitor humidity, pest levels, and irrigation needs. With support from the DPIA initiative, they expanded to five states and helped increase farmer profits by 30–40%. Budget 2025–26’s push for 5,000 new agri-startups is expected to scale such innovations.
Challenges That Remain
- Landholding Fragmentation: Average farm size is below 1.1 hectares; limits mechanization.
- Market Linkages: Despite eNAM (electronic National Agricultural Market), small farmers still depend on local traders.
- Credit Access: Only 53% of farmers have access to formal credit (as per NABARD).
Opportunities for Stakeholders
- Farmers: Can access digital advisories, weather forecasts, and market prices through DPIA.
- Startups: With policy support, there’s room to solve problems in logistics, cold storage, and soil health.
- Policy Makers: Can use DPIA data for targeted subsidy reform and climate risk mapping.
Conclusion: From Land to Lab to Market
Budget 2025–26 sows the seeds of a 21st-century agricultural revolution. By balancing sustainability, technology, and financial inclusion, it moves beyond the old debate of subsidy vs. productivity. For India to feed not just itself but the world, this alignment of policy, innovation, and budgetary support is vital.
As Agriculture Minister Arjun Munda rightly said, “The future of farming lies in digitization, decentralization, and dignity. This budget charts that future.”
