Union Budget 2025-26: Finance Minister Nirmala Sitharaman Prioritizes Agriculture as Growth Engine
In the Union Budget for 2025-26, Finance Minister Nirmala Sitharaman has placed agriculture at the forefront of India’s economic growth, calling it “the first engine of growth” for the nation. The budget introduces several key initiatives, including the Prime Minister Dhan-Dhaanya Krishi Yojana, designed to benefit 1.7 crore farmers, with a focus on improving agricultural productivity and resilience. This scheme will be implemented in collaboration with state governments, with the goal of enhancing the livelihoods of farmers in 100 districts facing challenges like low yields and moderate crop intensity.
Sitharaman also announced a significant increase in the Kisan Credit Card (KCC) limit, raising it to Rs 7 lakh from Rs 5 lakh to benefit 7.7 crore farmers. This move aims to provide easier access to credit for farmers, empowering them with more financial flexibility.
Another highlight of the budget is the allocation of Rs 1.27 lakh crore for aquaculture, which includes a capital expenditure of Rs 87.87 crore. India, being the second-largest global producer of fish and aquaculture, will benefit from this increased funding, especially as seafood exports already contribute Rs 60,000 crore to the economy. The government will also introduce a new framework for sustainable fishing in the Indian Exclusive Economic Zone and High Seas, focusing on the Andaman and Nicobar Islands and Lakshadweep.
Key Agricultural Initiatives:
- Makhana Board in Bihar: The government will establish a dedicated Makhana Board to strengthen the processing and production of fox nuts in Bihar, further promoting the state’s agricultural economy.
- Rural Prosperity and Resilience Programme: This new initiative will focus on rural youth, women, marginal farmers, and landless families, aiming to uplift and empower these groups with better opportunities for economic self-sufficiency.
- Atmanirbharta in Pulses: The government will initiate a six-year programme aimed at making India self-reliant in pulse production, particularly for tur (pigeon pea), urad, and masoor (yellow lentils). The programme will focus on procuring pulses from registered farmers and ensuring agreements for four years with agencies like Nafed and NCCF.
- Gene Bank and High-Yield Seeds: In a bid to safeguard genetic resources, the government will establish a second Gene Bank to house 10 lakh germplasm lines. Additionally, a research ecosystem will focus on developing high-yield, climate-resilient seeds, crucial for India’s future food and nutritional security.
The budget also stresses the need for crop diversification and enhanced post-harvest infrastructure, aiming to create a more resilient and sustainable agricultural ecosystem.
Conclusion:
The 2025-26 Union Budget lays a strong emphasis on agriculture, with initiatives designed to benefit millions of farmers and address critical challenges within the sector. By promoting agricultural productivity, enhancing financial access, and ensuring sustainability, the government is positioning agriculture as a key pillar in driving India’s economic growth.