Reforms for new world order: Budget shows India struggling to feed growth

Despite new policy support and AI-led productivity tools, India's agriculture still faces structural challenges as its GVA share in GDP continues to fluctuate

Challenges

• India must realign its strategy to sustainably boost agricultural GVA on stronger, healthier foundations
• The government has created social security measures for those who rely on agriculture as their primary source of employment

 

Takeaways

• Finance minister has proposed support for high-value crops, but agriculture GVA’s share in GDP has fluctuated, slipping from 16 per cent in FY19 to 15 per cent in FY26
• Agriculture’s share of employment has risen in India with the government introducing the AI tool Bharat-VISTAAR to boost farm productivity