A major focus of Budget aspirations lies in the bio-economy and circular materials sector, which proponents argue remains under-leveraged despite its potential to address both environmental and economic challenges. India generates over 500 million tonnes of crop residue annually, much of it burned, exacerbating air pollution and greenhouse gas emissions. Converting agricultural waste into value-added biomaterials could simultaneously reduce pollution, enhance rural incomes and reduce dependence on fossil-based materials.

Experts like Mahadev Chikkanna, CEO of MYNUSCo, are calling for targeted fiscal incentives such as R&D tax credits, export incentives for bio-based products, and policy support to scale bio-manufacturing infrastructure. They argue that these measures would help shift India’s economy from a traditional linear model to a circular, bio-based growth trajectory, positioning the country competitively in climate-friendly manufacturing.

For smallholder farmers, who make up a large portion of India’s agricultural workforce, the Budget is seen as a chance to build enduring resilience. Stakeholders emphasise investments in climate-adaptive agriculture, water security, precision farming, crop insurance, institutional credit, and post-harvest infrastructure. These supports are considered essential for mitigating climate risk, stabilising farm incomes and strengthening local value chains.