India’s Union Budget 2026: Dr. R.G. Agarwal of Dhanuka Agritech Highlights R&D Funding and GST on Pesticides
29 January 2026, New Delhi: Ahead of the Union Budget, Dr. R.G. Agarwal, Chairman Emeritus of Dhanuka Agritech Limited, has shared his expectations related to research funding, taxation of agricultural inputs, and implementation of budget announcements. Dhanuka Agritech Limited is a crop protection company listed on the BSE and NSE.
Dr. Agarwal stated that India currently spends about 0.7 per cent of its GDP on research and development. He noted that countries such as China, Israel, the United States, and several European nations allocate a higher share of their resources to R&D. According to him, increasing R&D funding is necessary to support scientific progress and global competitiveness.
He also referred to earlier provisions that allowed income-tax deductions to encourage private-sector research, which are no longer available. He said that restoring such incentives would support research activities in both public institutions and private industry.
On the issue of taxation, Dr. Agarwal stated that pesticides are agricultural inputs used to manage crop health and reduce production risk. He pointed out that pesticides currently attract a GST rate of 18 per cent. He compared this with the reduced GST rates applicable to essential human medicines and urged the government to reduce the GST on pesticides to 5 per cent to lower input costs for farmers.
Dr. Agarwal also noted that several announcements made in the previous Union Budget have progressed to implementation. He stated that initiatives are underway and added that the focus should now be on execution and outcomes at the farm level.
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