 "Union Budget 2025: What Economic Survey says about the agriculture sector")
India’s agriculture sector continues to perform above trend levels, according to the Economic Survey 2024-25, presented in Parliament on Friday by Union Finance Minister Nirmala Sitharaman.
The survey highlighted that in the second quarter of FY25, the agriculture sector grew by 3.5 per cent, reinforcing its critical role in the Indian economy.
Government push for agricultural growth
The government is focusing on boosting agricultural productivity through initiatives like the Sub-Mission on Agricultural Extension (SMAE), aimed at disseminating knowledge, improving farm practices, and promoting sustainability.
“Agricultural extension is vital in disseminating knowledge; the government is implementing the Sub-Mission on Agricultural Extension (SMAE) and its various components to enhance productivity and promote sustainable agricultural practices,” the survey stated.
Horticulture, livestock, and fisheries drive growth
The report also highlighted that high-value sectors such as horticulture, livestock, and fisheries have emerged as key drivers of India’s overall agricultural expansion.
To support this momentum, the Union Budget 2024-25 allocated Rs 1.52 trillion for the agriculture and allied sector—a significant increase from Rs 1.22 trillion in 2023-24, the survey said.
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Credit and market access for farmers
Recognising the importance of financial support, the survey emphasised the role of the Kisan Credit Card (KCC) scheme, which has significantly enhanced farmers’ access to institutional credit. As of March 2024, 77.5 million KCC accounts were operational, with an outstanding loan amount of Rs 9.81 trillion.
Additionally, government initiatives such as the Modified Interest Subvention Scheme (MISS) and the Kisan Rin Portal (KRP) are improving credit flow and ensuring timely loan disbursal.
The survey also stressed the need for better market infrastructure and price stability. The e-National Agriculture Market (e-NAM) platform has expanded digital trading, giving farmers direct access to competitive pricing and reducing intermediaries.
Sustained foodgrain and crop productivity
The survey projected Kharif foodgrain production for 2024 at 164.705 million metric tonnes (LMT), reflecting an increase from the previous year. However, it emphasised the need for sustained efforts in irrigation, soil health improvement, and post-harvest storage to minimise losses and enhance efficiency.
The National Mission on Sustainable Agriculture (NMSA) is playing a crucial role in promoting climate-resilient farming. Programs under the Per Drop More Crop (PDMC) initiative are expanding micro-irrigation coverage, ensuring better water management amid growing climate concerns.
Boosting food processing and exports
The survey acknowledged the food processing sector as a key contributor to economic growth, with agri-food exports reaching $46.44 billion in FY24, accounting for 11.7 per cent of India’s total exports.
To further strengthen this sector, the government is implementing schemes such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY), aimed at modernising food processing infrastructure. The Production Linked Incentive Scheme for Food Processing (PLISFPI) is also driving global competitiveness and attracting investment in value-added agri-products.
Addressing climate challenges
The survey further cautioned that climate variability and water scarcity remain critical concerns for the agriculture sector. The government is prioritising climate-resistant crop research, expanding micro-irrigation, and promoting digital solutions to enhance farm resilience.
Farmer Producer Organizations (FPOs) are being encouraged to boost market access, reduce costs, and strengthen collective bargaining power, ensuring that small and marginal farmers benefit from economies of scale.