Agricultural research needs greater funding to sustain long-term growth

The Indian Council of Agricultural Research’s (ICAR’s) latest estimates suggest that agricultural research and technology contributed roughly one-third of the increase in the value of agricultural output between 2024 and 2025. The gains came from improved seed varieties, mechanisation, climate-resilient technologies, better germplasm, extension services, and natural resource management. While the ICAR acknowledges that the estimate is indicative rather than an exact econometric measure, it makes an important point: Agricultural research can deliver high returns and become a key driver of agricultural productivity. Indian agriculture is confronting challenges that cannot be addressed through subsidies or input support alone. Shrinking landholdings, soil degradation, groundwater depletion, rising pest and disease incidence, and increasing climate risks are steadily eroding farm productivity. Thus, the gains in the future will have to come less from expanding cultivated land and more from producing higher-value output with fewer resources. This requires sustained investment in research that develops climate-resilient crop varieties, improves soil and water management, lowers carbon, nitrogen and energy footprints, and accelerates diversification into horticulture, livestock and fisheries. 

The ICAR’s own numbers illustrate this transformation. Between 2024 and 2025, crop production increased by 19 million tonnes and horticulture by 7 million tonnes, while fisheries added 1.4 million tonnes, generating around ₹40,000 crore in additional economic value. The institute also released 386 improved crop varieties in 2025. Of those, 94 per cent are climate-resilient and 29 are biofortified varieties. These are productivity-enhancing innovations that are increasingly shaping India’s agricultural growth. The economic case for greater investment is even stronger. A recent working paper by the National Institute of Agricultural Economics and Policy Research estimates that every ₹1 invested in agricultural research generates returns of nearly ₹13.85, among the highest returns recorded for any category of public expenditure. Agricultural extension, which carries innovations from laboratories to farmers’ fields, yields ₹7.40 for every rupee invested. Yet, India’s investment priorities remain skewed. Public spending on agricultural research and education has increased from ₹4,836 crore in 2014-15 to ₹9,266 crore in 2026-27, but this remains modest for a sector that underpins national food security. India’s overall research spending also remains at just 0.6-0.7 per cent of gross domestic product, well below the levels seen in most advanced economies. 

The imbalance becomes starker when viewed against the broader agricultural Budget. According to a study by the Indian Council for Research on International Economic Relations, 73 per cent of agricultural expenditure is absorbed by subsidies and welfare schemes. The combined food, fertiliser and fuel subsidy bill for 2026-27 is projected to exceed ₹4.1 trillion, more than 44 times the allocation for agricultural research and education. Subsidies undoubtedly remain essential for protecting farm incomes and ensuring food security. But they are primarily instruments of consumption support, while research is an investment in future productivity. Clearly, there is a need for greater and more predictable funding for agricultural research, stronger extension systems, faster technology transfer, and closer collaboration between public institutions and the private sector, which would yield returns far beyond their budgetary cost.