Inside India’s Farm Transformation: Rising Budgets, Digital Agriculture and the Push for Farmer Prosperity

18 December 2025, New Delhi: India’s agricultural sector is undergoing one of its most comprehensive transformations since Independence, driven by sustained public investment, policy reforms, and a strong emphasis on farmer income security, sustainability and technology adoption. Information presented by the Ministry of Agriculture & Farmers Welfare in Parliament highlights how a wide array of Central Sector and Centrally Sponsored Schemes is shaping the future of farming across India.

Although agriculture is constitutionally a State subject, the Government of India continues to play a pivotal role by designing national frameworks, funding large-scale programmes and supporting states through budgetary allocations, technical guidance and institutional reforms. These interventions now span the entire agricultural ecosystem—covering production, risk management, post-harvest infrastructure, marketing, exports, natural farming and digital services.

Agriculture Budget Expansion Reflects Policy Commitment

One of the strongest signals of the government’s commitment to agriculture is the sharp rise in budgetary allocation to the Department of Agriculture & Farmers Welfare (DA&FW). The allocation has increased nearly six-fold over a decade—from ₹21,933.50 crore in 2013–14 to ₹1,27,290.16 crore in the Budget Estimates for 2025–26.

This expansion reflects a strategic shift from short-term support to long-term structural strengthening of agriculture. The enhanced budget supports income transfers, crop insurance, credit availability, infrastructure creation, mechanisation, extension services and climate-resilient farming practices.

Farmer Income Growth: Evidence from National Surveys

Data from the National Sample Survey Office (NSSO) provides measurable evidence of income growth among agricultural households. The Situation Assessment Survey of Agricultural Households shows that the average monthly income per agricultural household rose from ₹6,426 in 2012–13 to ₹10,218 in 2018–19.

This increase has been driven by multiple factors, including diversification into allied activities such as livestock and fisheries, improved access to institutional credit, income support through PM-KISAN, reduced production risks through crop insurance and better price discovery mechanisms.

Further reinforcing this trend, the Indian Council of Agricultural Research (ICAR) has compiled success stories of over 75,000 farmers who have more than doubled their income through convergence of schemes implemented by DA&FW and allied ministries. These case studies demonstrate the impact of integrated interventions rather than isolated schemes.

Rising Rural Consumption Indicates Improved Economic Well-being

The Household Consumption Expenditure Survey (2023–24) conducted by the Ministry of Statistics and Programme Implementation points to improving rural purchasing power. Average Monthly Per Capita Consumption Expenditure (MPCE) in rural India increased from ₹1,430 in 2011–12 to ₹4,122 in 2023–24, while urban MPCE rose from ₹2,630 to ₹6,996.

Importantly, the gap between rural and urban consumption has narrowed, suggesting gradual improvement in rural living standards, access to services and economic resilience.

Income Security and Risk Management at the Core

Ensuring income stability remains central to India’s agricultural strategy. The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) provides direct income support of ₹6,000 per year to eligible cultivable landholding farmers, offering predictable cash flow support.

Risk mitigation is addressed through the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme, which together insure more than four crore farmers annually across 24 States and Union Territories. These schemes aim to reduce vulnerability to climate shocks, pest attacks and yield losses.

Affordable credit is facilitated through the Modified Interest Subvention Scheme, under which farmers can access short-term crop loans up to ₹3 lakh at a subsidised interest rate of 7 percent per annum, including support for allied activities such as animal husbandry and fisheries.

Building Agricultural Infrastructure and Market Power

Post-harvest losses and weak market linkages have long constrained farm incomes. The ₹1 lakh crore Agriculture Infrastructure Fund (AIF) seeks to address this by enabling medium- and long-term debt financing for warehouses, cold storage, grading units and community farming assets. The scheme offers interest subvention of 3 percent on loans up to ₹2 crore for a period of seven years.

Parallelly, the government is promoting the formation of 10,000 Farmer Producer Organisations (FPOs) to enhance farmers’ bargaining power, enable aggregation, reduce input costs and improve access to markets, credit and technology. FPOs are increasingly viewed as key institutions for making smallholder farming economically viable.

Sustainability, Natural Farming and Climate Resilience

With climate variability posing growing risks, sustainability-focused programmes have gained prominence. The National Mission on Natural Farming aims to develop 15,000 clusters covering 7.5 lakh hectares, supported by Bio-Input Resource Centres to promote low-cost, chemical-free farming.

Organic farming is supported through the Paramparagat Krishi Vikas Yojana, while Rainfed Area Development under the National Mission for Sustainable Agriculture focuses on Integrated Farming Systems to reduce risk in rain-dependent regions. Agroforestry initiatives under the Sub-Mission on Agroforestry encourage tree plantation alongside crops, offering additional income and ecological benefits.

Technology, Mechanisation and Digital Agriculture Push

Mechanisation and technology adoption are central to improving productivity and reducing drudgery. The Sub-Mission on Agricultural Mechanisation supports access to modern farm machinery, particularly for small and marginal farmers.

Water-use efficiency is being improved through the Per Drop More Crop programme, which promotes drip and sprinkler irrigation systems across water-stressed regions.

The Digital Agriculture Mission represents a major shift toward building a national digital public infrastructure for agriculture. Designed as an open, interoperable platform, it aims to integrate crop advisories, input access, credit, insurance, crop estimation, market intelligence and support for agri-tech startups.

Innovative programmes such as Namo Drone Didi are further expanding the technology ecosystem by enabling women self-help groups to provide drone-based services for fertiliser and pesticide application.

Crop Diversification, Nutrition and Food Security

To address sustainability and nutritional challenges, the Crop Diversification Programme encourages farmers to move away from water-intensive crops like paddy towards pulses, oilseeds and coarse cereals. The National Food Security and Nutrition Mission focuses on sustainably increasing production of rice, wheat, pulses and nutri-cereals across selected districts.

Horticulture development is supported through the Mission for Integrated Development of Horticulture, covering fruits, vegetables, spices, flowers, plantation crops and bamboo, thereby expanding income opportunities beyond cereals.

Reducing Import Dependence and Promoting Atmanirbhar Agriculture

India’s dependence on edible oil imports is being addressed through the National Mission on Edible Oils—Oil Palm and the National Mission on Edible Oils—Oilseeds. These missions aim to expand cultivation, improve productivity, strengthen processing infrastructure and enhance farmer incomes, with special focus on the North-Eastern States and island regions.

Organic value chains in the North East are being strengthened through the Mission Organic Value Chain Development for North Eastern Region, linking certified organic producers with domestic and export markets.

A Multi-Layered Strategy for Long-Term Agricultural Growth

Taken together, these initiatives represent a multi-layered strategy that combines income support, risk mitigation, infrastructure creation, institutional strengthening, sustainability and digital innovation. The government’s approach increasingly emphasises convergence—ensuring that farmers benefit from multiple schemes working in tandem rather than in isolation.

FAQs: India’s Agricultural Sector Development and Farmer Welfare Schemes

1. What is the Government of India doing to develop the agricultural sector?

The Government of India is implementing a comprehensive set of Central Sector and Centrally Sponsored schemes covering income support, crop insurance, credit, irrigation, mechanisation, infrastructure, organic farming, digital agriculture and market access. These programmes aim to increase agricultural productivity, reduce risks, ensure remunerative returns and improve farmers’ incomes in a sustainable manner.

2. How much has the agriculture budget increased in recent years?

The budget allocation for the Department of Agriculture & Farmers Welfare has increased significantly—from ₹21,933.50 crore in 2013–14 to ₹1,27,290.16 crore in the Budget Estimates for 2025–26. This reflects the government’s long-term commitment to strengthening India’s agricultural ecosystem.

3. Has farmer income actually increased in India?

Yes. According to the National Sample Survey Office’s Situation Assessment Survey, the average monthly income of agricultural households rose from ₹6,426 in 2012–13 to ₹10,218 in 2018–19. ICAR has also documented over 75,000 cases where farmers more than doubled their income through convergence of government schemes.

4. What is PM-KISAN and how does it help farmers?

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is an income support scheme that provides ₹6,000 per year to eligible cultivable landholding farmers in three equal instalments. It helps farmers meet input costs and maintain cash flow during the cropping cycle.

5. Which schemes protect farmers from crop losses and climate risks?

Farmers are protected through the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme. Together, these schemes insure more than four crore farmers every year against yield losses caused by natural calamities, pests and adverse weather conditions.

6. How does the government support affordable agricultural credit?

Through the Modified Interest Subvention Scheme, farmers can access short-term crop loans up to ₹3 lakh at a subsidised interest rate of 7 percent per annum. The scheme also covers allied activities such as animal husbandry, dairying and fisheries.

7. What is the Agriculture Infrastructure Fund (AIF)?

The Agriculture Infrastructure Fund is a ₹1 lakh crore financing facility aimed at strengthening post-harvest infrastructure such as warehouses, cold storage, grading units and community assets. It offers interest subvention of 3 percent per year on loans up to ₹2 crore for a maximum of seven years.

8. Why are Farmer Producer Organisations (FPOs) important?

FPOs help small and marginal farmers aggregate their produce, reduce input costs, improve bargaining power and access markets, credit and technology. The government is promoting the formation of 10,000 new FPOs to ensure sustainable income growth and institutional strength at the grassroots level.

9. What initiatives promote natural and organic farming in India?

Natural farming is promoted through the National Mission on Natural Farming, while organic farming is supported through the Paramparagat Krishi Vikas Yojana. These initiatives encourage low-input, environmentally friendly farming systems that improve soil health and reduce dependence on chemical inputs.

10. What is the Digital Agriculture Mission?

The Digital Agriculture Mission aims to build a national digital public infrastructure for agriculture. It integrates services such as crop advisories, input availability, credit, insurance, crop estimation and market intelligence through open and interoperable platforms to benefit farmers and agri-tech startups.

11. How is technology being used to modernise Indian agriculture?

Technology adoption is being promoted through agricultural mechanisation schemes, micro-irrigation under the Per Drop More Crop programme, and innovative initiatives like Namo Drone Didi, which enables women self-help groups to provide drone-based agricultural services to farmers.

12. What is being done to promote crop diversification?

The Crop Diversification Programme encourages farmers to shift from water-intensive crops like paddy to pulses, oilseeds and coarse cereals. This helps conserve natural resources, improve soil health and enhance farmers’ income through diversified cropping systems.

13. How is India addressing food and nutrition security?

Food and nutrition security are addressed through the National Food Security and Nutrition Mission, which focuses on increasing sustainable production of rice, wheat, pulses and nutri-cereals across identified districts through area expansion and productivity enhancement.

14. What steps are being taken to reduce India’s edible oil imports?

The National Mission on Edible Oils—Oil Palm and the National Mission on Edible Oils—Oilseeds aim to boost domestic oilseed production, expand cultivation area, improve productivity, strengthen processing infrastructure and increase farmers’ income, especially in the North-East and island regions.

15. How does the government support agriculture marketing and exports?

Marketing reforms are supported through the Integrated Scheme for Agriculture Marketing, which focuses on market infrastructure development, capacity building and access to market information. These efforts help farmers connect with domestic and export markets more efficiently.

16. Why is sustainability a key focus of India’s agriculture policy?

Sustainability is critical due to climate variability, soil degradation and water stress. Government programmes promote natural farming, agroforestry, micro-irrigation, rainfed area development and integrated farming systems to ensure long-term agricultural resilience and environmental balance.

17. How do these schemes work together to benefit farmers?

The government emphasises convergence of schemes—combining income support, insurance, credit, infrastructure, technology and market access—so farmers benefit from multiple interventions simultaneously rather than relying on a single programme.

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