Increased credit, R&D spend to boost yields and reduce losses
The 2025 Budget places a strong emphasis on promoting agritech solutions and precision farming as part of efforts to modernize Indian agriculture and improve productivity
In recognition of the imperative to give agriculture and rural economy a boost, Budget 2025 details the initiatives to modernise the sector, improve productivity, and create sustainable livelihoods for farmers.
A key highlight is the launch of the Dhan Dhaanya Krishi Yojana, which targets 100 low-productivity districts to assist 1.7 crore farmers through better agricultural practices and infrastructure development. The scheme aims to enhance yields and create employment opportunities in rural areas.
To strengthen agricultural supply chains, the Government announced the transformation of India Post into a rural logistics player, facilitating efficient transportation of farm produce to markets. Enhanced credit facilities have been extended to farmers through increased funding under priority sector lending.
The 2025 Budget places a strong emphasis on promoting agritech solutions and precision farming as part of efforts to modernise Indian agriculture and improve productivity. The key proposals include: tax deductions and incentives for agritech firms investing in research, development, and deployment of technology-driven solutions such as AI, IoT, drones, and satellite technology for agriculture. These incentives are aimed at encouraging private investment in precision farming tools that can enhance crop yield, improve soil health, and reduce resource wastage.
Financial support is proposed for digital platforms that connect farmers with markets, providing them with timely information on weather patterns, soil conditions, and crop pricing. This will help farmers take more informed decisions, reduce losses and improve productivity.
Precision irrigation systems, such as drip irrigation and sprinklers, are being incentivised to improve water-use efficiency in agriculture. These technologies will help optimise water consumption, which is critical in water-scarce regions.
Increased funding for R&D in agritech and precision agriculture will support innovation in creating more efficient farming techniques, high-yield crop varieties, and improved pest management systems, among other advancements.
The Budget also includes provisions for training programmes aimed at educating farmers on the use of agritech tools and precision farming practices. These programmes will focus on technology adoption and capacity building in rural areas to ensure that farmers can effectively utilise these innovations.
Sustainable farming practices received attention through incentives for organic farming and the promotion of climate-resilient crops. Water resource management programs were also allocated higher funding to ensure better irrigation infrastructure.
In addition, the Government has introduced the Rural Prosperity and Resilience Programme, designed to address underemployment in agriculture. Implemented in partnership with state governments, this program focuses on skilling, investment, and technology adoption to strengthen the rural economy. It aims to generate adequate employment opportunities in rural areas, making migration to urban centers a choice rather than a necessity. Special attention will be given to rural women, young farmers, marginal and small landholders, and landless families, ensuring economic stability and sustained livelihood opportunities.
The Budget also proposes to increase the loan limit under the Modified Interest Subvention Scheme for loans taken through Kisan Credit Cards, raising it from Rs.3 lakh to Rs.5 lakh. This enhancement is designed to provide farmers with greater financial flexibility and support their agricultural activities.