As the Union Budget 2026 approaches, the Indian agriculture sector is poised for a significant push towards technology adoption, rural credit reforms, and climate-smart practices. With the agriculture sector contributing approximately 18% to India's Gross Value Added (GVA) and employing nearly half of the country's workforce, the budget presents a crucial opportunity to reposition the sector as a driver of economic growth.
Focus on Technology and Innovation
Industry leaders and experts are advocating for a shift from a production-led approach to one driven by innovation, competitiveness, and technology. Key expectations include investments in digital infrastructure, such as AGRISTACK, and the adoption of AI, drones, IoT, and data analytics. Greater integration of digital infrastructure into the agri-tech ecosystem is seen as vital for transforming agriculture. This includes emphasis on agri-drones, IoT sensors and AI-based analytics. Besides this, focus is also expected on expansion of allied sectors like dairy, livestock and fisheries. Public-private partnerships in storage, logistics and R&D are also anticipated.
Rural Credit and Financial Inclusion
Access to credit and finance for farmers, especially small and marginal farmers and women, is another key area of focus. The budget is expected to strengthen Kisan Credit Cards (KCC) and improve credit access for women farmers. Measures to enhance credit depth and quality, strengthen KCC adoption, and set clearer targets for agricultural and allied credit are also anticipated. Nomura economists predict a potential increase in the agricultural credit target by 15-20%.
Climate-Resilient Agriculture
With climate disruptions posing a major threat to food security, the budget is expected to scale climate-smart practices, including micro-irrigation, soil health restoration, and drought-tolerant seeds. Integrating advisory services, satellite-based crop monitoring, and risk mitigation tools into flagship schemes can significantly boost productivity and resilience. Incentivizing agroforestry, soil and water conservation, and sustainable farming practices is also an urgent priority.
Infrastructure and Supply Chain Enhancements
The agriculture sector is urging for increased investment in infrastructure, research and development, and climate-smart farming, advocating a shift from direct subsidies towards capital expenditure and farm mechanization. Key focus areas include investments in production and storage infrastructure, promotion of digital agriculture solutions, and support for farmer aggregation models like producer organizations and cooperatives. Investment in post-harvest management infrastructure, such as cold chains, modern warehouses, processing units, and digital supply-chain management, is also crucial. Creating export-centric agri clusters, modern pack houses, port-linked cold chains, and a stable export policy framework would encourage long-term investments and reduce uncertainty for farmers and exporters.
Self-Sufficiency and Diversification
The budget is expected to strengthen efforts towards self-sufficiency in edible oilseeds and pulses. This includes strengthening ongoing missions like the National Mission on Edible Oils–Oilseeds (NMEO-Oilseeds) and the Aatmanirbharta in Pulses Mission. Incentivizing diversification into horticulture, pulses, and oilseeds to reduce overdependence on water-intensive crops is also a priority.
Overall, the agriculture sector anticipates that the Union Budget 2026 will prioritize technology-driven growth, climate-resilient practices, and improved access to credit, paving the way for a more sustainable and prosperous future for Indian agriculture.
