The Indian agricultural sector is receiving substantial support from the government as outlined by the recent Economic Survey presented by Union Finance Minister Nirmala Sitharaman for the years 2024-25 and 2025-26. The survey reveals extensive measures taken to boost farmers' incomes and agricultural productivity, laying down the essence of the Indian Agricultural Policy and Economic Outlook.
According to the Economic Survey 2024-25, there are now 7.75 crore Kisan Credit Card (KCC) accounts operational, with total outstanding loans amounting to ₹9.81 lakh crore. Remarkably, among these, 1.24 lakh KCCs are designated for fisheries and 44.40 lakh for animal husbandry. A salient feature of this year’s agricultural policy is the digitization of the claims process under the Modified Interest Subvention Scheme (MISS) using the Kisan Rin Portal (KRP), which has processed claims exceeding ₹1 lakh crore as of December 2024.
Efforts to stabilize agriculture financing are commendable. Banks are mandated to allocate 40 percent of their Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure to priority sectors like agriculture. This strategic move has slashed the reliance on non-institutional credit sources to approximately 25 percent, down from 90 percent back in 1950.
Ground-level credit (GLC) for agriculture, having surged at a compound annual growth rate (CAGR) of 12.98 percent, increased from ₹8.45 lakh crore during 2014-15 to ₹25.48 lakh crore by 2023-24. Notably, the contribution of small and marginal farmers to this credit growth also flourished, growing from ₹3.46 lakh crore (41 percent) to ₹14.39 lakh crore (57 percent) over the same period.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) has seen impressive participation—reportedly backed by 24 state governments and 15 insurers, ensuring adequate insurance coverage for farmers. The number of enrolled farmers increased significantly, rising to four crore by FY24, which amounts to a 26 percent increase from the previous year. Premium rates have decreased by 32 percent, offering greater accessibility to low-income farmers.
Key initiatives, including the PM-KISAN scheme, have lifted direct income support provisions for more than 11 crore farmers, highlighting the government's commitment to financial assistance for the agricultural community. By the end of October 2024, the Pradhan Mantri Kisan Maandhan Yojana (PMKMY) had enrolled 23.61 lakh farmers, reflecting growing interest in the pension scheme aimed at providing security for those aged over 60.
While these measures bolster income security, the government is also focusing on enhancing food security through the Public Distribution System (PDS). The National Food Security Act (NFSA) encompasses up to 75 percent of the rural population and 50 percent of urban households, aiding 81.35 crore people. The extended Pradhan Mantri Garib Kalyan Anna Yojana has augmented free food grain allocations, targeting about 80 crore beneficiaries until 2029.
A sharp increase in agricultural mechanization has been recorded—26,662 Custom Hiring Centres have been established, along with innovative plans such as providing drones to Women Self-Help Groups for agricultural services. These initiatives, covering significant components of modern agriculture, provide much-needed technological assistance to the farming sector.
Infrastructure is key to agricultural productivity as well. The government has sanctioned 48,611 storage infrastructure projects, investing ₹4,795.47 crore. Strategies like the electronic National Agriculture Market (e-NAM) and the registration of over 9,204 Farmer Producer Organizations (FPOs) aim to streamline market access, encouraging fair prices for farmers.
"The finance minister has maintained the government's commitment to fiscal discipline..." noted Abneesh Roy of Nuvama Institutional Equities, highlighting the balancing act of supporting consumption through agricultural advancements. Efforts are underway for ensuring Credit Guarantee Schemes are implemented effectively, thereby enhancing investment flow.
Speaking on enhanced market orientation, the electronic National Agriculture Market has integrated numerous wholesalers and farmers, promoting transparency. Registered traders on the platform have increased to 2.63 lakh, and the aggregated trade has amounted to approximately ₹4.01 lakh crore since its establishment.
The rise of millets as the 'superfood of India' also reflects the government's strategic vision; production and productivity have significantly increased partially due to specific initiatives, including the establishment of seed hubs. These developments could position India as a leading player in global agricultural production.
Overall, the expected outcomes from these policies highlight not only improvements for income security and food safety but also reaffirm India’s agricultural sector's backbone role within its economy. The seasonal adjustments and reforms reflect the government's proactive stance to reshape the economic narrative surrounding agriculture, showcasing resilience through numbers and impactful initiatives.