Budget 2026 is emerging as a defining moment for India’s agriculture sector, with industry leaders urging the government to shift decisively toward technology adoption and climate-resilient infrastructure in the upcoming FY27 fiscal plan.
Executives and policy experts across the agri value chain argue that Indian farming must no longer be framed as a welfare obligation alone but repositioned as a central engine of economic growth. Amit Vatsyayan, leader for GPS–Agriculture at EY India, said the sector is increasingly being recognized as a driver of productivity, employment and rural demand, even though it employs nearly 45 percent of the workforce while contributing less than one-fifth of the country’s gross value added.
According to Vatsyayan, Budget 2026 should prioritize investments that can close this productivity gap, starting with green infrastructure. He pointed to the urgent need to scale micro-irrigation networks, watershed development, aquifer recharge projects and renewable energy deployment in rural areas. He also stressed that deeper public-private collaboration is essential to modernize storage and logistics, where post-harvest losses continue to erode farm incomes.
The organized dairy sector, a critical pillar of India’s rural economy, is also pressing for targeted interventions. Brahmani Nara, executive director at Heritage Foods, observed that consumer preferences have shifted toward high-protein products following GST rationalization in September 2025. She said the momentum from existing schemes such as the Rashtriya Gokul Mission must now be reinforced through subsidized high-quality animal feed, expansion of veterinary education capacity and higher capital subsidies for mini-dairy units.
Industry sources said such measures could accelerate modernization in small and medium dairy enterprises, which form the backbone of milk production but often lack access to affordable finance and technical expertise.
Climate adaptation is another theme running through pre-budget expectations. Vatsyayan emphasized that future-proofing agriculture requires more than incremental spending. In his view, programs for micro-irrigation, soil and water conservation and renewable energy should be scaled to national missions, rather than remaining fragmented across departments.
He also advocated for adapting Japan’s farmer school model to Indian conditions, arguing that rapid technology diffusion will depend on strengthening knowledge transfer systems at the village level.
Technology providers see digital agriculture as the most powerful growth lever. Swapnil Jadhav, chief executive of MapMyCrop, said precision farming tools such as agri-drones, IoT sensors and AI-driven analytics can significantly improve yields and climate resilience, but only if supported by robust digital infrastructure and easier access to credit.
Jadhav urged policymakers to use Budget 2026 to introduce targeted subsidies for technology adoption and R&D tax incentives for startups building solutions around platforms like AGMARK-NET and e-NAM. Without these enablers, he cautioned, advanced tools risk remaining confined to pilot projects rather than scaling across millions of small holdings.
Beyond technology, structural reforms are also in focus. Soumyak Biswas of BDO India said fragmented landholdings, chronic underinvestment in allied sectors and limited public funding for research continue to hold the sector back. He called for higher allocations to agricultural R&D, stronger institutional backing for farmer producer organizations and greater policy support for diversification into horticulture and oilseeds.
Biswas highlighted the rollout of AGRISTACK as a foundational reform that could integrate farmer databases, land records, credit access and insurance systems. If implemented effectively, he said, the platform could crowd in private investment by reducing information asymmetries and transaction costs across the value chain.
Collectively, these voices point to a growing consensus: Budget 2026 must move beyond short-term relief and embrace a long-term productivity agenda. For a sector that still supports nearly half of India’s population, the stakes are high. As industry leaders frame it, the next fiscal blueprint has the potential to reset agriculture as a modern, technology-enabled and climate-ready growth sector rather than a perennial recipient of welfare spending.
Written for eDairyNews, with information from: Whalesbook
