Makhana board, Investment in Western Koshi command area Prime Minister Dhan-Dhaanya Krishi Yojana’ for 100 districts with low productivity, moderate crop intensity and below-average credit parameters , customised Credit Cards with a ` 5 lakh limit for micro enterprises registered on Udyam portal are the few revolutionary steps which will not only Check unmindful and forced migration but will create a farmer centric , robust Agriculture Value chain. India’s agricultural sector has long been the backbone of its economy, but its true potential remains untapped due to a lack of value addition and processing infrastructure. Traditionally, farmers have been confined to primary production, leaving them vulnerable to price fluctuations, middlemen, and post-harvest losses. However, Budget 2025 lays a strong foundation for an agri-led manufacturing economy, recognising that the future of rural prosperity lies in food processing, agro-industrial clusters, and cooperative-based manufacturing. This shift from a raw-produce-based economy to a value-added agricultural powerhouse will not only boost farmers’ incomes but also generate large-scale rural employment, reduce distress migration, and foster self-reliant rural communities. With a focus on pulses, oilseeds, Natural farming, and farm-to-factory linkages, India is poised to become a global leader in high-value agri-products and rural industrialisation.
The government’s renewed Pulses Mission is a key step towards achieving nutritional security and self-sufficiency in pulse production. India is the world’s largest producer and consumer of pulses, yet it relies on imports to bridge domestic demand. To address this, Budget 2025 prioritises assured procurement on MSPs (Minimum Support Prices), enhanced procurement through cooperatives, and incentives for startup led processing industries which will create insitu employment . By promoting FPO-led (Farmer Producer Organisation) supply chains, decentralised pulse-processing units, and research-driven yield improvements, the government is ensuring that pulses become a profitable crop for farmers rather than just a subsistence crop. This mission will not only reduce India’s dependence on imports but also create employment in rural processing units, packaging industries, and export logistics, reinforcing the role of pulses as an economic driver.
The budget’s emphasis on food processing and rural industrialisation marks a paradigm shift in how agriculture contributes to economic growth. India’s agri-rich states-Bihar, Jharkhand, Chhattisgarh, and the Northeast-are blessed with unique agricultural produce but suffer from inadequate processing and market linkages. To address this, the government is investing in farm-to-factory models that integrate small farmers into formalised supply chains, cold storage and logistics hubs to reduce post-harvest losses, and cooperative-led food processing units that ensure farmers retain value in their produce. Additionally, branding and global marketing of region-specific products, such as Bihar’s makhana Board, maize, and litchi, Himachal’s apples and walnuts, and the Northeast’s organic spices and medicinal plants, will boost exports and enhance rural incomes.
By shifting from raw exports to high-value agri-based manufacturing, India can significantly enhance its agricultural GDP, boost rural wages, and create new employment avenues in food processing, packaging, and distribution.
One of the most promising aspects of Budget 2025 is its strengthening of the cooperative movement through the PACS-to-APEX model. Primary Agricultural Credit Societies (PACS) will now function as multi-service agribusiness hubs, connected to state and national cooperative federations. This model will enable direct market access for farmers, reducing dependency on middlemen; technology-driven processing units at the village level, enhancing value retention; financial and credit linkages, ensuring timely support for small farmers; and e-market platforms for transparent pricing and better market intelligence. By embedding AI and blockchain into cooperative transactions, the budget ensures fair pricing, traceability, and financial inclusion, making rural entrepreneurship more viable than ever.
Beyond manufacturing, the future of Indian agriculture lies in integrating primary production with high-value services. Agri-tourism, AI-driven farm advisory, blockchain-backed supply chains, and rural fintech hubs are poised to revolutionise the employment landscape in villages. Key initiatives under the budget include rural startups and ease of getting credit, 5 Lakh Rs Credit card to those registered with UDYAM portal for those and fintech hubs, enabling digital banking, crop insurance, and agri-finance services; AI-powered soil testing and precision farming, reducing input costs and enhancing productivity; drone-assisted irrigation and weather forecasting, mitigating climate risks for farmers; and e-commerce platforms for farmers, allowing direct-to-consumer sales of organic and specialty crops. This multi-sectoral approach ensures that rural youth no longer must migrate to cities for employment. Instead, they can become Agri-entrepreneurs within their own villages, engaged in logistics management, organic certification, digital marketing, and farm consulting services.
The integration of AI, IoT, and blockchain in Indian agriculture is set to revolutionise productivity, transparency, and financial security for farmers. Some key developments include AI-driven commodity trading, where a National AI-Powered Agri Commodity Exchange will eliminate middlemen and ensure transparent pricing, benefiting small farmers in Jharkhand, Chhattisgarh, and Bihar and other producer states. Blockchain-backed cooperative networks will use smart contracts to ensure timely payments, prevent fraud, and build trust in rural financial transactions. AI-powered logistics planning will optimise transportation networks to ensure that perishable goods reach markets efficiently, reducing waste and increasing farmer incomes. Additionally, data-driven lending and insurance models will allow small farmers to access credit and insurance without bureaucratic hurdles. By embedding AI into PACS-led financial models, warehouse management, and e-trading platforms, Budget 2025 is democratising access to technology for rural India.
The comprehensive focus on agri-led industrialisation, technology-driven services, and cooperative empowerment ensures that India’s villages become self-reliant economic hubs, rather than sites of agrarian distress. This transformation also has socio-political ramifications-economic security and cooperative-led development will diminish rural unrest, insurgency, and distress migration. Furthermore, this budget aligns with the Ek Bharat, Shreshtha Bharat vision by ensuring regional economic parity and integrating rural economies into national and global markets. By fostering rural entrepreneurship, cooperative wealth creation, and AI-driven agricultural solutions, India is positioning itself as a global leader in sustainable agri-business. Towards 21st century with geopolitical headwinds suggesting lower global economic growth over the medium term, certainly our aspiration for a Viksit Bharat inspires us, and the required transformative action point will fuel the Bio-Energy led growth. Budgetary provision is helpful in turning our fastest growing towards a Net Zero Emitter. Our development track record of the past 10 years and structural reforms have drawn global confidence in India’s capability and the potential will exponentially grow as an effect of this budget. We see in the next five years a unique opportunity to realise ‘Sabka Vikas’, stimulating balanced growth of all regions.
The finance minister quote on ‘A country is not just its soil, a country is its people is certainly in line with this, for us, Viksit Bharat, with India moves toward a sustainable, self-reliant, and technology-powered rural economy, the wisdom of the Vedas guides us:
“Krinvanto Vishwam Aryam” - “Let us make the world noble.”
With the right policies, technological advancements, and a commitment to inclusivity and sustainability, India stands on the brink of a rural revolution that will define its economic trajectory for the next century. The agri-led manufacturing economy is not just an economic strategy-it is a vision for a prosperous, empowered, and self-sufficient India.
— Writer is Executive President World Cooperation Economy Forum
