By:-Soumyak Biswas, Partner Agriculture, Government Advisory, BDO India
“India’s agriculture sector, though employing nearly 45% of the workforce, contributes only around 18% to national GVA, reflecting low productivity, limited value addition, and persistent structural challenges. Small and fragmented landholdings, inadequate investment in allied sectors, high post-harvest losses, and underfunded research continue to restrict growth. The upcoming Budget offers an opportunity to strengthen long-term resilience through targeted interventions. Priorities include scaling research and climate-smart agriculture by increasing funding for DARE, promoting PPP-led innovation, and supporting climate-resilient practices such as micro-irrigation and regenerative farming. Strengthening allied sectors, livestock, fisheries, horticulture, and expanding cold-chain and processing infrastructure can significantly boost farmer incomes. Empowering FPOs through market-linked product strategies and credit guarantees will help small producers integrate into value chains. Incentivising diversification into horticulture, pulses, and oilseeds can reduce overdependence on water-intensive crops. Accelerating technology adoption through digital equipment subsidies, shared tech centres, and subsidised advisory services will improve productivity for small farmers. Enhanced credit access, insurance coverage, and climate-risk buffers will further stabilise incomes. A re-imagined and well-funded agricultural strategy can ensure rural prosperity, food security, and sustainable growth.”
