Government's proposal to spend Rs 1.71 lakh crore on agriculture in FY26 is a little above the Rs 1.4 lakh crore in revised estimates in FY25. The budget also promises a series of schemes to benefit farm income in the next fiscal
Aimed at helping 1.7 crore farmers, the government announced a new scheme for agriculture called ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states. Image: Sameer Sehgal/Hindustan Times via Getty Images
Banking on growth and improvement of agriculture and farm economy, the government plans to push the pedal on development in financial year 2026. With initiatives to boost vegetables, fruits, seeds and credit for farmers, fishermen and dairy farmers, the government is betting big on agricultural growth, a lever to also drive rural economy in India.
Identifying agriculture as the first engine (out of four) of development, finance minister Nirmala Sitharaman said in her presentation in Parliament, “In this Budget, the proposed development measures span ten broad areas focusing on garib (poor), youth, annadata (farmers) and nari (women).”
The government proposes to spend Rs 1.71 lakh crore in FY26 on agriculture and allied activities. This compares to Rs 1.4 lakh crore in revised estimates in FY25 from Rs 1.51 lakh crore as proposed in the budget of the same year.
“Overall, in line with expectations, the government continues its emphasis on infrastructure, agri sector and ‘startups’ ecosystem. If executed properly, the budget is likely to revitalise the Indian economy, which has been experiencing a slowdown,” says Sanjay Sanghvi, partner, Khaitan & Co.
Aimed at helping 1.7 crore farmers, the government announced a new scheme for agriculture called ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states. Through the convergence of existing schemes and specialised measures, the programme will cover 100 districts with low productivity, moderate crop intensity and below average credit parameters.