As the Union Budget 2025 approaches, expectations are high for measures that will address challenges and unlock new opportunities for sustainable growth in India’s agriculture sector. Union Finance Minister Nirmala Sitharaman is set to present the budget on February 1, 2025, with stakeholders hoping for policies that bolster a sector crucial to the nation’s economy. Despite employing over 42% of the population and contributing 18.2% to the GDP (according to the Economic Survey 2023-2024), Indian agriculture continues to grapple with issues such as unpredictable weather, labor shortages, and inefficient resource utilization.
A Vision for Enhanced Agriculture Spending

Agriculture has historically been a cornerstone of India’s economy, yet its potential often remains underutilized. Reports suggest the government intends to increase the agriculture sector’s budget by 15%, reaching nearly US$ 20 billion—the largest hike in over six years. This increase is aimed at bolstering rural incomes, stabilizing inflation and improving infrastructure.
P S Murali Babu, General Secretary, The Federation of All India Farmer Associations (FAIFA) has emphasized the need for a dedicated agriculture budget at both central and state levels. Such a move would ensure that diverse aspects of agriculture—crop cultivation, animal husbandry, aquaculture, forestry, and horticulture—receive tailored attention. “The 1991 economic reforms largely overlooked agriculture, and the sector has suffered. A separate budget would help address longstanding challenges and unlock its potential,” P S Murali Babu stated.
Strengthening Agricultural Value Chains and Productivity

Anand Ramanathan, Partner and Consumer, Products and Retail sector Leader, Deloitte India, emphasized the need for a structured approach, stating, “India’s agritech sector stands at a crossroads where policy interventions can drive transformative change. The upcoming budget presents an opportunity to integrate digital solutions, improve infrastructure, and create a resilient value chain that benefits both farmers and consumers.”
Anand Ramanathan also stated, “India contributes 11% to global agricultural production; however, its share in global food exports remains modest at 2–3%, with processed food exports even lower at 1–2%. In FY2024, agriculture exports stood at INR2.2 lakh crore, marking a 5% decline due to stricter regulations and export bans on key commodities. To reverse this trend, the government is expected to enhance value chains, promote crop diversification, and boost processed food production.”
Government initiatives such as the Rashtriya Krishi Vikas Yojana, the Digital Agriculture Mission, and the Agriculture Infrastructure Fund have sought to modernize the sector. However, pre-existing challenges—including low average productivity, poor soil health and inadequate irrigation—require a fresh approach to maximize farmer benefits. Strengthening Farmer Producer Organizations (FPOs) and providing them with financial incentives and managerial training can help small and marginal farmers overcome these hurdles.
Infrastructure Development and Public-Private Partnerships
To make advanced technology affordable for small and marginal farmers, P S Murali Babu has recommended establishing shared infrastructure clusters under public-private partnership (PPP) models. These clusters would provide access to advanced tools like drones, IoT devices, and modern irrigation systems, enabling farmers to benefit from cutting-edge technology without incurring high upfront costs.
These clusters could also serve as hubs for agricultural graduates to conduct research, train farmers, and implement best practices. This approach would not only enhance farm productivity but also create employment opportunities and encourage knowledge sharing between experts and farmers.
Creating an Enabling Seed Ecosystem
Anand Ramanathan emphasized the streamlining of the distribution and adoption of high-yield seed varieties through ICAR and private-sector collaboration can significantly enhance agricultural productivity. Improved Seed Replacement Rate (SRR) and Varietal Replacement Rate (VRR) will play a crucial role in boosting yields. Currently, many research-backed seed varieties remain confined to institutions, limiting their impact on broader agricultural productivity. A dedicated framework for large-scale seed multiplication and distribution is essential to address this gap.
Empowering Farmers Through Education and Training

The government’s role in fostering sustainable agricultural practices includes equipping Agricultural and Horticultural departments with training in global best practices. These trained departments could then educate and guide farmers, enabling them to adopt innovative and efficient farming techniques.
Ashok Jayanthi, Chairman and Co-founder of Hosachiguru, highlighted the importance of supporting organic farming initiatives. “Organic farming not only restores soil health but also mitigates climate change through carbon sequestration. To accelerate this transition, the government must set up more organic certification centers and provide extensive training to farmers,” he said. He also emphasized the need for digital platforms to market and sell organic produce globally, improving farmer livelihoods and expanding market access.
Digital Connectivity and E-Commerce
Expanding rural internet connectivity is seen as a critical enabler for farmers. Digital tools and platforms can provide real-time information on weather patterns, soil health, and market trends, empowering farmers to make informed decisions. FAIFA has also called for the creation of e-commerce platforms that directly connect farmers with buyers, eliminating intermediaries and increasing profitability. This integration of technology into farming practices could revolutionize the way small and marginal farmers operate, ensuring higher returns and reducing inefficiencies in the supply chain.
“To bridge the gap between technology and ground-level implementation, we need to invest in digital infrastructure and farmer literacy,” said Anand Ramanathan. “Educating farmers through Krishi Vigyan Kendras and extension officers can significantly increase trust and adoption of digital agriculture tools. Establishing robust agridata exchanges, integrating digital tools into extension services, and enhancing farmer literacy in agrotech will drive higher adoption rates. These measures will lead to reduced costs, improved farm yields, and better market access.”
Also read: 10 Game-Changing Applications of Drones That Are Transforming Agriculture in India
Strengthening Farmer Producer Organizations (FPOs)
FPOs play a crucial role in aggregating produce, accessing better markets, and reducing farmer vulnerability. However, their effectiveness depends on financial support, operational guidance, and institutional linkages. Capacity building, incentivizing aggregation, improving storage and market linkages and facilitating access to institutional credit are key areas requiring attention. “With better support structures, FPOs can drive higher profits for farmers and ensure long-term sustainability,” suggested Anand Ramanathan.

Specialized Support for Aquaculture
The agrotech sector’s potential extends beyond traditional farming. Minushri Madhumita, Founder of ThinkRaw, a firm specializing in agriculture and aquaculture solutions, highlighted the need for focused government support in aquaculture. According to Minuishri, fish and prawn farming clusters should be established in key producing states, with efficient distribution networks to supply fresh harvests across India. Simplified credit systems and subsidies would be essential to help small farmers adopt advanced aquaculture tools and techniques.
Promoting Sustainability Through Technology
Sustainability is a cornerstone of modern agricultural policy. Ashok Jayanthi stressed the importance of establishing region-specific demonstration units that showcase best practices in sustainable farming. These units could help farmers understand the value of cultivating native crops, which are naturally resilient and require fewer inputs while providing higher nutritional value.
Encouraging mixed farming systems—combining crops with livestock or aquaculture—is another proposed initiative. Such practices could ensure year-round income for farmers, enhance biodiversity, and contribute to food security. Localized weather stations are also essential investments, as they provide accurate, region-specific forecasts that can reduce crop losses and optimize productivity.
Simplified Subsidies and Credit Finance
Both P S Murali Babu and Minushri Madhumita have highlighted the importance of streamlining subsidies and credit access for small and marginal farmers. Simplified processes would allow farmers to secure the necessary funding to integrate modern tools and techniques into their cultivation practices. Minushri Madhumita particularly emphasized the need for easier access to financial assistance in both agriculture and aquaculture to boost productivity and income.
Expanding Agricultural Exports
The government’s vision for agriculture includes achieving US$ 80 billion in exports by 2030. To meet this target, P S Murali Babu has recommended investments in high-yield seed varieties, efficient storage facilities, and improved supply chains. Expanding the production of pulses, oilseeds, and vegetables would ensure a surplus for both domestic consumption and exports, strengthening India’s position in the global agricultural market.
A Roadmap for Agrotech Transformation
The 2025 Union Budget holds the potential to address long-standing gaps in the agricultural sector. By focusing on sustainability, technological integration and farmer empowerment, the government can lay the foundation for a more productive and resilient agrotech ecosystem.
As Ashok Jayanthi summed up, “A healthier population and sustainable environment are within reach if the government prioritizes organic farming, biodiversity, and localized solutions. These steps will not only improve farmers’ livelihoods but also ensure a robust future for Indian agriculture.”
With a clear focus on collaboration, innovation, and inclusivity, stakeholders believe the budget could be a turning point for India’s agricultural landscape, balancing tradition and innovation to achieve long-term prosperity.
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