Agriculture is one of the most important sectors of the Indian economy, accounting for more than 15% of GDP, and Indian Union Budget announcements have consistently highlighted the industry. More than 45% of the population works in agriculture.

According to the Economic Survey 2023-24, India's agriculture industry has grown at an average annual rate of 4.18% at constant prices over the last five years. Industry analysts are looking forward to the 2019 budget to see what the government has planned for the sector. Here are some experts' perspectives on what they expect from the impending Union Budget 2025.

Leader’s Viewpoint

Hrishit Panthry, Co-Founder of Envirocare Foundation, elaborated on the proposals, saying, "For a long time, India's economy has been deeply reliant on the agriculture sector. It not only contributes to GDP but also employs a large number of people. Understanding the importance of the sector, numerous initiatives have been implemented to enhance it in such a way that growth does not come at the expense of improving farmer welfare. Policies such as the PM-Kisan Samman Nidhi Yojana, which provides direct income to farmers, and the Soils Health Card Scheme, which promotes the use of fertilizers in a balanced manner, demonstrate such attempts to some extent."

"Also, the government's emphasis on using technology to modernize agriculture has been commendable. Projects such as the Digital Agriculture Mission, as well as subsidies for agricultural gadgets and irrigation systems, have enabled farmers to boost output while saving on input. Furthermore, the implementation of Minimum Support Prices (MSP) and crop insurance schemes such as the Pradhan Mantri Fasal Bima Yojana has assisted farmers in surviving in unfavourable markets and weather situations," he noted.

Shrikant Goenka, Managing Director, Premier Irrigation Adritec (PIAL), stated that the agriculture sector, which is considered the backbone of the Indian economy, still requires significant attention and investment as the Union Budget 2025 approaches "Various political constituencies including farmers, policy makers and other stakeholder individuals hold high expectations with regards to challenges and reforms in order to improve productivity, income and sustainability of the sector.”

He stated that the primary expectation is that the investment will be directed toward enhancing physical facilities for agricultural activity. "Infrastructure investment in cold storage, warehousing, and supply chain management is critical for reducing harvest losses and enhancing producers' market access. Furthermore, subsidies and incentives must be offered to take use of emerging advanced technologies such as drones, AI-based monitoring, IoT, and the promise of high yield and efficient resource usage in precision farming.

He also stated that the sector is waiting for measures to address water management and climate change. Additional funding for microSP, WSP, and INRM/RE-tech, such as solar pumps, can greatly benefit farmers. Other projects that investigate ecologically friendly farming practices include those that promote organic farming and soil fertility.

Aman J Jain, Co-Founder and CEO of Doodhvale Farms, stated, "With the Union Budget 2025 approaching, key players in the dairy and poultry value chains are hoping to see policy interventions that will help these sectors overcome challenges and chart future growth paths. These divisions are major sources of rural income and food security, and they require interventions to improve efficiency, market access, and production risk protection against climatic and market threats."

"One assumption is that financial incentives for modernizing infrastructure in the dairy and poultry industries will be developed. Sewage, storage, and marketing capacities in food processing plants, as well as cold storage and efficient supply chains, reduce waste and boost farmer profits. Furthermore, subsidies for fodder and feed costs are critical in transportation, as the burden on dairy and poultry farmers grows in tandem with growing input prices," he noted.

"The dairy sector's funding, which is currently dominated by artificial insemination, breed improvement programs, and veterinary services, should be increased to increase yields and improve dairy herd health." Similarly, poultry farmers believe that steps to prevent diseases from infecting their birds will be implemented, as well as incentives for adopting sustainable farming practices such as cage-free farming," he stated.