The Union Budget 2025, presented by the Finance Minister, brings significant policy shifts designed to transform Indian agriculture. With a clear focus on rural growth, food security, and farmer empowerment, the budget allocates a record ₹2.1 lakh crore to the agriculture sector—a 12% increase from last year. The government has emphasized climate-resilient farming, digital infrastructure, and agri-entrepreneurship as core themes of its strategy.
The budget’s vision aligns with the broader goal of doubling farmers’ income, improving productivity, and making agriculture more sustainable in the face of climate change.

🌾 Key Announcements Impacting Farmers
- Increased Allocation to Agriculture & Allied Sectors
- ₹2.1 lakh crore allocated for agriculture, animal husbandry, and rural development.
- Emphasis on improving farm productivity and post-harvest infrastructure.
- Launch of ‘Agri-Tech Infrastructure Fund’
- ₹15,000 crore earmarked for promoting AI, IoT, drone, and satellite use in agriculture.
- Aims to enhance precision farming and reduce resource wastage.
- Expansion of e-NAM and Agri Markets
- Additional 2,000 mandis to be integrated into the electronic National Agriculture Market (eNAM).
- ₹5,000 crore allocated for building agri-logistics parks in key producing regions.
- New Climate-Resilient Farming Policy
- A National Policy for Climate-Resilient Agriculture (NPCRA) to be rolled out.
- ₹8,000 crore set aside for promoting drought-tolerant crops, water-saving irrigation, and natural farming techniques.
- Tax Incentives for Farmer Producer Organizations (FPOs)
- 5-year income tax holiday extended for registered FPOs.
- Support for aggregation, processing, and direct-to-market models.
- Revised Kisan Credit Card (KCC) Norms
- Limit increased from ₹3 lakh to ₹4 lakh.
- Interest subvention scheme to continue with 3% rebate on timely repayment.
🧑🌾 Stakeholder Reactions
Agriculture economists and farmer unions have welcomed the budget’s long-term vision but have also called for timely implementation.
“This budget shows that the government recognizes agri-tech and climate adaptation as the future of farming,” said Dr. Ramesh Kulkarni, a rural economist.
Meanwhile, small and marginal farmers are hopeful that increased support for FPOs and KCC loans will ease their financial burden.
📊 Policy Shifts: The Bigger Picture
This year’s budget reflects a shift from subsidy-based support to investment-driven growth in agriculture. By focusing on infrastructure, technology, and sustainable practices, the government is aiming to build a future-ready agricultural economy.
However, effective coordination between central and state governments, timely fund disbursal, and awareness among farmers remain critical challenges.
