India’s agricultural sector, vital to its economy and national life, has seen a significant acceleration of proactive measures from late 2023 through early 2025. These initiatives leverage technology, direct financial assistance, infrastructure development, and legislative reforms to elevate farmer welfare, revolutionize operations, and impact rural livelihoods, food security, and economic growth.
Empowering Farmers: Direct Support & Risk Resilience
The government’s agricultural strategy prioritizes farmer financial stability and protection from adversities through several key schemes.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
Continues to provide ₹6,000 annually in three installments to land-owning farmer families. Tenant farmers and sharecroppers remained ineligible as of December 2024, with no proposal for their inclusion under consideration.
Pradhan Mantri Fasal Bima Yojana (PMFBY)
Extended until 2025-26, this crop insurance scheme mitigates financial losses from natural calamities. For 2025-26, the Yield Estimation System using Technology (YES-TECH) mandates a minimum 30% weightage to technology-based yield estimates, phasing out traditional Crop Cutting Experiments. The Weather Information and Network Data Systems (WINDS) initiative (launched 2024-25) builds a network of Automatic Weather Stations (AWS) and Automatic Rain Gauges (ARGs) for hyper-local weather data, improving insurance precision and claim settlements. A Fund for Innovation and Technology (FIAT) with a ₹824.77 Crore corpus supports these advancements. Farmers can enroll for Rabi 2025-26 from December 1 to December 31, 2025.
Kisan Credit Card (KCC) Scheme
Launched in 1998, this scheme provides affordable institutional credit at an effective 4% annual interest rate (with subvention and prompt repayment incentives). It offers an ATM-enabled RuPay card and expanded scope to animal husbandry and fisheries in 2004. Farmers can avail collateral-free loans up to ₹1.60 lakh. Eligibility extends to small farmers, marginal farmers, sharecroppers, oral lessees, tenant farmers, Self-Help Groups (SHGs), and Joint Liability Groups (JLGs). Operative amount under KCC accounts more than doubled from ~₹4 lakh crores (2014) to ~₹10 lakh crores (2024).
Soil Health Card (SHC) Scheme
Integrated into RKVY’s ‘Soil Health & Fertility’ component since 2022-23, this scheme promotes balanced nutrient management. Studies show 8-10% reduction in chemical fertilizer use (e.g., 9% urea for paddy) and 5-6% crop yield increases (e.g., 30.8% wheat, 29.8% paddy). Over 90% of surveyed farmers had never tested their soil before its introduction. An expanded network of 11,531 new and 829 upgraded soil testing labs has generated over 25.25 crore Soil Health Cards by 2025. Paddy users reported an extra return of ₹8,323/ha.
Paramparagat Krishi Vikas Yojana (PKVY)
Promotes organic farming and chemical-free agriculture since 2015. Operating on a cluster-based model (20 hectares), it facilitates collective adoption of organic methods and uses the Participatory Guarantee System (PGS-India) for certification. Farmers receive ₹31,500 per hectare over three years for organic inputs, marketing, certification, and training. As of February 2025, approximately 15 lakh hectares were under organic farming, benefiting 25.30 lakh farmers through 52,289 clusters.
National Agriculture Market (e-NAM)
An electronic trading portal connecting APMCs across states for transparent price discovery and market access. By December 2024, 1,410 mandis across 22 states/UTs were integrated, registering 1.75 crore farmers, 2.43 lakh traders, and 4,250 Farmer Producer Organizations (FPOs). The pilot launch of e-NAM 2.0 in November 2024 in Tamil Nadu and Rajasthan aims to enhance data migration, automate bidding, and integrate logistics.
Cultivating a Green Future: Sustainable Growth & Enhanced Productivity
The government’s vision focuses on long-term agricultural sustainability and productivity through eco-friendly practices.
National Mission on Natural Farming (NMNF)
Approved as a Centrally Sponsored Scheme in November 2024 with a ₹2,481 crore outlay until 2025-26. It aims to cover 750,000 hectares and empower 1 crore farmers over two years, promoting chemical-free, ecologically sound methods. The Union Budget 2025-26 allocated ₹616.01 crore to this mission.
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
Launched in 2015 with the motto “Har Khet ko Pani” and “Per Drop More Crop.” Its micro-irrigation component (drip and sprinkler systems) saves 20-48% water, 10-17% energy and fertilizer, and increases crop production by 20-38%. Small and marginal farmers receive 55% assistance, and a ₹5000 crore Micro Irrigation Fund (MIF) with NABARD further incentivizes adoption.
Clean Plant Programme (CPP)
Approved in August 2024 with ₹1,765.67 crore allocation, this initiative aims to revitalize horticulture by providing access to high-quality, virus-free planting material. It involves establishing nine world-class Clean Plant Centres (CPCs) with advanced diagnostic and tissue culture laboratories.
National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds)
Approved in October 2024 with a ₹10,103 crore outlay for 2024-25 to 2030-31, targeting self-reliance in edible oils. It aims to increase oilseed production from 39 million tonnes to 69.7 million tonnes by 2030-31, focusing on rapeseed-mustard, groundnut, and soybean.
New Missions and Initiatives from Union Budget 2025-26
- Mission for Aatmanirbharta in Pulses: Launched in October 2025 with ₹11,440 crore outlay (2025-26 to 2030-31) to achieve self-sufficiency in pulses by December 2027 and a total production of 350 lakh tonnes by 2030-31. It prioritizes Tur, Urad, and Masoor, focusing on climate-resilient seeds, 100% MSP procurement by NAFED and NCCF, and 1,000 post-harvest processing and packaging units.
- Mission for Cotton Productivity: A five-year initiative commencing mid-2025 with a ₹2,500 crore budget to boost cotton yield and promote Extra Long Staple (ELS) cotton. It includes three mini-missions: Kapas Kranti, Modernization of Ginning Units, and Promotion of Sustainable Natural Fibers, aligning with the “5F vision.”
- National Mission on High-Yielding Seeds: Announced in February 2025 with ₹100 crore allocated for hybrid seeds in the 2025-26 budget. It aims to strengthen research, development, and propagation of high-yielding, pest-resistant, and climate-resilient seeds, targeting over 100 new seed varieties. Plans for a second Gene Bank to preserve traditional varieties are included.
- Pradhan Mantri Dhan Dhaanya Krishi Yojana (PMDDKY): Launched in October 2025, targeting 100 underperforming districts to modernize farming practices and uplift ~1.7 crore farmers. With an annual budget of ₹24,000 crore for six years, it offers financial assistance, modern tools, crop insurance, and improved market access.
- Pradhan Mantri Matsya Sampada Yojana (PMMSY): Extended until 2025-26 with significant funding (total outlay ₹17,210.46 crore as of July 2025) for fisheries infrastructure development (harbors, landing centers, markets, cold storage, processing units). A new sub-scheme, PM-MKSSY (₹6,000 crore, FY23-24 to FY26-27), supports fishermen and micro-enterprises.
From Farm to Market: Strengthening Infrastructure and Connectivity
Strategic investments in post-harvest infrastructure and farmer collectives are prioritized.
Agriculture Infrastructure Fund (AIF)
Expanded in August 2024 with ₹1 lakh crore to support community farming assets and integrated processing projects. It allows convergence with Component-A of the PM-KUSUM scheme for clean energy. By August 2024, ₹47,575 crore was sanctioned for 74,508 projects, mobilizing ₹78,596 crore investment and generating rural employment. Loan disbursements are scheduled until the end of FY 2025-26.
10,000 Farmer Producer Organizations (FPOs)
The Central Sector Scheme has met its target, connecting ~30 lakh farmers (40% women). FPOs enhance collective bargaining, improve access to inputs and credit, and strengthen market linkages. They foster rural employment and women’s empowerment, with a cumulative turnover of ₹5,035.5 crore by June 2025.
Subsidies for Agricultural Inputs
- Seeds: Through Sub-Mission on Seeds & Planting Materials (SMSP) and National Food Security Mission (NFSM), quality seeds are affordable (50-75% cost coverage).
- Fertilizers: Urea is highly subsidized. The Nutrient Based Subsidy (NBS) policy for P&K fertilizers ensures affordability, with subsidies transferred to companies based on Aadhaar-verified sales.
- Agricultural Machinery: The Sub-Mission on Agricultural Mechanization (SMAM) offers up to 50% subsidy on machinery.
- Irrigation Equipment: PMKSY’s “Per Drop More Crop” provides significant subsidies for micro-irrigation. PM-KUSUM supports solar pumps.
Market Access Support (MAS) Scheme
Launched for FY26–31 with ₹4,531 crore outlay, part of the Export Promotion Mission (approved November 2025). It supports first-time exporters, MSMEs, and agricultural sectors for international trade fairs, exhibitions, and buyer-seller meets.
Digital Transformation in Agriculture: Tech & Policy Driving Efficiency
A push towards digital transformation and regulatory simplification aims to enhance transparency, efficiency, and accessibility.
Agri-Tech and Data-Driven Decision Making
Digital Agriculture Mission
Sanctioned in September 2024 with ₹2,817 crore, creating a Digital Public Infrastructure (DPI) for agriculture. It aims to establish digital identities for 11 crore farmers by 2026-27, with over 7 crore unique farmer IDs linked to land records by mid-August 2025.
- AgriStack: A foundational component of DPI, including registries for farmers, village land maps, and crop-sown data, delivering efficient government services and enabling participation in digital marketplaces.
- Krishi Decision Support System (Krishi-DSS): Launched in August 2024, this digital geospatial platform integrates satellite imagery, weather forecasts, soil health reports, and historical crop patterns for optimized crop monitoring, yield estimation, early warnings, and insurance claim settlements. The Digital Crop Survey (DCS) was initiated in 436 districts (Kharif 2024) and 461 districts (Rabi 2024-25), aiming for nationwide coverage.
Streamlining Operations
Digital tools like the Direct Benefit Transfer (DBT) portal and the FARMS Mobile App provide transparent financial assistance for farm machinery.
Regulatory Reforms: Shaping Agricultural Governance for the Future
Draft Pesticides Management Bill, 2025
Aims to replace the Insecticides Act, 1968, minimizing risks, ensuring safe use, and combating spurious products. It envisions digital mechanisms for registration, licensing, and record-keeping, promoting biopesticides.
Draft Seeds Bill, 2025
Intended to replace the Seeds Act of 1966, it aims to reform the seed sector by enhancing quality, curbing spurious seeds, and promoting ease of doing business. It includes mandatory registration of seed varieties (with exceptions for traditional farmer varieties and export-only seeds) and QR codes for traceability. The Bill affirms a farmer’s right to save, use, exchange, and sell farm-saved seeds (not under a company brand name). Farmer groups express concerns about potential corporate favoritism, risks to biodiversity, and inadequate compensation for crop failure. Public consultation concluded in December 2025.
Broader National Reforms: Boosting Agri-Business & Investment
Broader national reforms foster growth for agri-startups and food processing units.
Facilitating Business Growth: The Impact of Indian Agricultural Policies 2025
- MSME Classification Criteria Revision: Effective April 1, 2025, revised investment and turnover limits for MSMEs enable more agri-food processing businesses to qualify for government benefits.
- Business Reform Action Plan (BRAP) 2026: The 8th edition launched in November 2025, along with the District Business Reform Action Plan (D-BRAP), extends reforms to the grassroots level. India’s assessment for the World Bank’s “B-READY” project (2025-2026, report expected September 2026) will influence future reform agendas.
- Reducing Compliance Burden (RCB) Framework: By November 2025, over 47,000 compliances were reduced, simplifying, digitizing, decriminalizing, and removing redundant compliances.
- Jan Vishwas Act 2023 and Jan Vishwas Bill 2025: Decriminalized 183 provisions (Act 2023) and propose to decriminalize an additional 288 provisions (Bill 2025), shifting minor offenses to monetary penalties.
- National Single Window System (NSWS): A one-stop digital solution for government approvals, having approved 829,750 applications by November 20, 2025.
- Companies Act, 2013 Reforms: By September 2025, amendments included decriminalization of technical and procedural violations, expansion of the fast-track merger framework, and introduction of “deemed approval” for time-bound clearances.
Access to Finance and Investment Promotion
- Enhanced Credit Guarantee: The Credit Guarantee Scheme for MSMEs (CGTMSE) increased its guarantee coverage limit to ₹10 crore from April 1, 2025. The Union Budget 2025 doubled the guarantee cover for startups to ₹20 crore. The Credit Guarantee Scheme for Exporters (CGSE) offers 100% coverage up to ₹50 crore.
- Fund of Funds for Startups (FFS): A new or second FFS with an additional ₹10,000 crore corpus was announced in the Union Budget 2025-26, expanding long-term funding for sectors including agricultural innovation.
- FDI Policy Reforms: 100% FDI is permitted under the automatic route in horticulture, seed development, animal husbandry, warehousing, and cold storage. The food processing sector attracted $12.58 billion in FDI between April 2000 and March 2024.
- Production Linked Incentive (PLI) Schemes: The PLI scheme for the Food Processing Industry (launched 2021, ₹10,900 crore budget until 2026-27) incentivizes incremental sales, promotes Indian brands, increases employment, and reduces food wastage.
- State-Level Initiatives: Schemes like the Rajasthan Investment Promotion Scheme 2024 (RIPS 2024) offer tailored incentives to attract investments in agri-processing and green technology.
Conclusion: Charting a Course for Sustained Agricultural Prosperity
The comprehensive government initiatives in financial support, risk mitigation, sustainable practices, infrastructure, and digital transformation demonstrate a concerted effort to modernize India’s agricultural sector. Legislative reforms and ease of doing business initiatives amplify this impact across the agribusiness value chain. India’s agricultural sector achieved a historic all-time high foodgrain production of 357.73 million tonnes in 2024-25, with a robust average annual growth rate of 4.18% over the preceding five years.
However, challenges persist. An OECD report (November 2024) highlighted India’s implicit taxation of farmers at an estimated USD 120 billion in 2023, primarily through policies keeping consumer food prices low. The Economic Survey 2024-25 recommended a shift from cereal overproduction to higher-value crops like pulses and oilseeds. Rural wages have stagnated, and substantial post-harvest losses due to inadequate infrastructure remain critical. Climate change poses a significant threat with erratic weather patterns.
Despite these challenges, the current trajectory shows a commitment to leveraging advanced technology, simplifying regulations, and channeling resources directly to farmers. These proactive measures, implemented from late 2023 through early 2025, are building a foundation for a more resilient, productive, and prosperous agricultural future, driving enhanced farmer welfare and national economic progress under the evolving framework of Indian agricultural policies 2025 and beyond.
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