Union Budget 2025 introduces a bold vision for agricultural transformation, addressing key challenges such as soil degradation, climate change and rural distress

Agriculture has been the backbone of India’s economy, sustaining growth and the livelihoods of millions, thus correctly referred to as the primary engine for India’s accelerated and inclusive growth in the annual budget presented on  February 1, 2025. However, the sector is facing numerous challenges, including deteriorating soil quality, stagnating crop yields, inadequate technologies, shrinking farmlands, poor infrastructure and heightened vulnerability to climate change, which poses a threat to food security and the wellbeing of our Anndatta. Further, these difficulties have led to a troubling trend: many marginal farmers and agricultural labourers from rural areas are being forced to migrate to cities in search of better opportunities.

Agricultural sustainability is also closely tied to climate change, which affects nearly all of the United Nations’ Sustainable Development Goals (SDGs). With a population still heavily reliant on farming, the need for sectoral reforms is undeniable. New policies and regulations are crucial for inclusive and accelerated growth. India’s 2025 budget addresses issues in the agriculture sector with a forward-thinking framework, by enabling improved credit access, and infrastructure development, and preparing farmers for future growth.

One standout initiative is the Pradhan Mantri Dhan Dhanya Krishi Yojana (PMDDKY). India’s agricultural sector is marked by significant regional disparities, with certain districts lagging in infrastructure, productivity, and economic opportunities. This ambitious program stands as a transformative initiative for rural India, focusing on the 100 most underdeveloped districts, and directly benefiting around 1.7 crore farmers. PMDDKY focuses on these underdeveloped areas, directing resources to regions that have been overlooked in the broader development process. This initiative seeks to ensure that farmers in these areas have access to the same opportunities as their counterparts in more prosperous regions.

The program aims to address long-standing agricultural challenges and empower farmers, particularly those affected by climate change and those from marginalised communities. With proper execution, PMDDKY can spark a ripple effect of development, improving infrastructure, technology access, and financial services in these districts thus enabling equitable growth across the country. By focusing on sustainability, inclusivity, and empowerment, PMDDKY strives to uplift farmers, women, and marginalised communities while ensuring resilience against future challenges.

The program also offers access to high-yielding varieties of seed and irrigation techniques and training to address the root causes of agricultural stagnation.

By supporting farmers in overcoming unpredictable weather patterns, outdated techniques, and limited market access, PMDDKY provides a pathway to more stable and productive farming. A distinctive feature of PMDDKY is its focus on empowering marginalised groups, particularly the poorest farmers.

These communities often face barriers such as limited access to credit, technology, and education. PMDDKY seeks to address these gaps by providing women farmers with greater control over land, improved training, and better market access. For marginalised communities, the program aims to ensure they are included in the benefits of agricultural development, promoting equality and empowerment. PMDDKY is not only about boosting agricultural output but also ensuring sustainable practices.

One of the unfortunate consequences of rural stagnation is the mass migration of farmers to urban areas in search of better opportunities. By strengthening agriculture in rural areas, PMDDKY aims to create conditions where farmers can thrive while cultivating their farmlands. If executed well, PMDDKY could be the catalyst for a brighter, more inclusive future in agriculture, where every farmer has the tools to thrive. The hope is that migration for farmers will become a choice, not a necessity—allowing agricultural communities to thrive where they are.

The budget also emphasises investment in innovation and technology, particularly in developing high-yield, climate-resilient crop varieties. The creation of germplasm banks to restore and introduce local crop varieties will strengthen domestic production. Additionally, the government is working to enhance the agricultural value chain, focusing on better storage, transportation, and export infrastructure, benefiting both farmers and consumers. Targeted schemes for crops like cotton, pulses, oilseeds, and vegetables will help mitigate the effects of climate change on farmers. These programs aim to boost food security and export potential, all while securing farmers’ livelihoods.

(The writer is Associate Director, The Energy and Resources Institute; views are personal)