With the FY27 Budget just around the corner, India's agriculture sector is raising its voice. Industry leaders are pressing the government to fundamentally rethink its support strategy. They want higher investments in technology, digital systems and climate-ready infrastructure. This push aims to unlock long-term growth potential for the sector.
A Call to Move Beyond Welfare
Agriculture employs nearly 45% of India's workforce. Yet, it contributes less than one-fifth to the nation's gross value added. Industry experts see the upcoming 2026-27 Budget as a critical turning point. They argue it's time to shift agriculture from a welfare-driven model to a sustained engine of economic expansion.
"Agriculture is increasingly being recognised not merely as a welfare sector, but as a credible engine of economic growth," said Amit Vatsyayan, Leader of GPS-Agriculture, Livelihood, Social and Skills at EY India. "It can drive productivity, employment, rural demand and resilience."
Dairy Industry Seeks Targeted Support
Within the broader agriculture landscape, the organised dairy segment is asking for specific policy interventions. Brahmani Nara, Executive Director of Heritage Foods Ltd, highlighted a shift in consumer demand. Following GST rationalisation in September 2025, consumers are moving toward high-protein and health-oriented products like paneer, cheese, ghee and butter.
She noted that existing schemes, including the Rashtriya Gokul Mission and the National Digital Livestock Mission, have already formalised over 300,000 farmers. To build on this momentum, Nara proposed several measures:
- Subsidised access to quality animal feed and chromosome-sorted semen to boost productivity.
- Expansion of veterinary education to bridge the gap between 68,000 registered veterinarians and the estimated need of 110,000–120,000.
- Higher capital subsidies for mini-dairy units, with special emphasis on those run by women entrepreneurs.
Investing in Climate-Resilient Infrastructure
Amit Vatsyayan stressed the urgent need to future-proof Indian farming. He identified green infrastructure as a top Budget priority. Key areas requiring scaled-up investment include micro-irrigation, watershed development, aquifer recharge and renewable energy-based agricultural assets.
"From a growth lens, these interventions also act as strong multipliers," Vatsyayan explained. "They stimulate rural demand, stabilise farm incomes and strengthen food security."
He also advocated for deeper public-private partnerships in storage, logistics and agricultural research. This collaboration is crucial to reduce post-harvest losses. Strengthening seed systems to support self-reliance in pulses and other nutrition-sensitive crops is another vital step.
Drawing inspiration from Japan's farmer school model, Vatsyayan suggested adapting cluster-based farmer schools. Linking these schools to farmer producer organisations and Krishi Vigyan Kendras could significantly speed up technology adoption across the country.
Leveraging Technology and Data for Growth
Digital agriculture emerged as another central theme in the pre-Budget discussions. Swapnil Jadhav, Founder and CEO of MapMyCrop, stated that scaling precision farming depends on two factors: robust digital infrastructure and easier access to credit for farmers.
"Agri-drones, IoT sensors, and AI-driven analytics hold transformative potential," Jadhav told PTI. "They can elevate yields, optimise water and fertilizer use, and fortify climate resilience for 140 million farm holdings."
Jadhav urged the government to offer targeted subsidies, expand public-private partnerships and provide R&D tax incentives. These measures would accelerate integration with platforms like AGMARK-NET and e-NAM. The goal is a decisive shift towards a technology-led agricultural framework.
Addressing Structural Reforms
Pointing to persistent challenges, Soumyak Biswas, Partner for Agriculture at BDO India, highlighted several key constraints. These include fragmented landholdings, underinvestment in allied sectors, high post-harvest losses and limited research funding.
Biswas called for a multi-pronged approach to address these issues:
- Scale up climate-smart agriculture through increased funding for the Department of Agricultural Research and Education (DARE).
- Strengthen the livestock and fisheries sectors.
- Support farmer producer organisations with credit guarantees and market-linked strategies.
- Encourage crop diversification into horticulture, pulses and oilseeds to reduce reliance on water-intensive crops.
Amit Vatsyayan added that the rollout of AGRISTACK could provide the digital backbone for many of these reforms. "By integrating farmer data, land records, credit, insurance, extension and market platforms, AGRISTACK can enable precision targeting, reduce transaction costs and crowd in private investment," he concluded.
