Digital Agriculture, Climate-Resilient Farming Likely To Be Among Focus Areas Of Budget 2026

(MENAFN- KNN India) New Delhi, Jan 23 (KNN) Agriculture is likely to stay among the primary areas of focus of the Union Budget 2026 with sector experts expecting the key economic document to contain actions steps for raising productivity, climate-resilient farming and deepening of digitisation.

Experts say agriculture is now seen not just as a welfare sector but as a key growth driver for productivity, jobs, and rural demand. Industry estimates project the market to grow from Rs 31 lakh crore in FY25 to Rs 38 lakh crore by FY30, at about 4 percent annually.

Agriculture at the Core of Medium-Term Growth Strategy

With agriculture employing a large workforce and driving consumption, the Budget offers a chance to place the sector at the core of India's medium-term growth strategy, reported Money Control.

Amit Vatsyayan, EY India said agriculture must move beyond income support to focus on productivity and resilience. He stressed scaling green infrastructure and climate-resilient irrigation, alongside value-chain modernisation, to drive sustainable growth.

Digital Agriculture Moves from Pilot to Scale

Digital agriculture is gaining policy focus, with agritech moving from pilots to scale. Experts say faster rollout of AGRISTACK could link farmer data with credit, insurance and markets, lowering costs and attracting private investment.

Amith Agarwal of StarAgri said the sector requires“deeper digitisation, stronger technology adoption, and greater farmer participation online” to improve market access, transparency, and efficiency.

Shift from Yield Maximisation to Nutrition Outcomes

Policy focus is gradually moving from yield maximisation to nutrition-led outcomes, with growing emphasis on biofortified seeds and nutrition-centric farming. Despite employing nearly half of the workforce, agriculture contributes only about 18 percent to India's GVA.

Soumyak Biswas of BDO India said this gap stems from low productivity, limited value addition, and structural challenges, and addressing these issues is essential to boost farmer incomes and sector efficiency.

Infrastructure, Credit, and Value Chain Gaps Persist

Experts highlight high post-harvest losses from limited storage, cold-chain, and processing facilities, along with uneven access to credit and insurance for small farmers. Boosting public and private investment in irrigation, green infrastructure, and value-chain modernisation, especially via Public Private Partnerships, is seen as key to raising productivity and stabilising farm incomes.

Budget Expectations

Ahead of Budget 2026, experts expect focus on productivity, seed innovation, sustainable farming, allied sectors, and digital agriculture, seeing it as a key chance to position agriculture at the heart of India's growth story rather than just as a welfare measure.

(KNN Bureau)

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