The Union Budget 2025-26 has placed a well-deserved spotlight on India's Annadata, reaffirming the government's commitment to spurring agricultural growth and productivity. Identified as one of the ten key focus areas for developmental intervention, agriculture remains a powerful engine driving India's economic progress.
A ‘Post-Budget Webinar on Agriculture & Rural Prosperity’ was held on March 01, 2025 to discuss the implementation of the Union Budget 2025-26 Announcements. The opening remarks were delivered by the Prime Minister and chaired by the secretaries of various departments from the Department of Agriculture & Farmers' Welfare (DoA&FW). The participants included various representatives from the DoA&FW along with other stakeholders namely RBI, NABARD, Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), State Cooperatives and District Central Cooperative Banks (StCBs and DCCBs), State Level Bankers' Committees (SLBCs), Krishi Vikas Kendras (KVKs), and farmers from across the nook and corner of the country.
As also mentioned in the Economic Survey 2024, as on 31.3.2024, there are 7.75 crore operational Kisan Credit Card (KCC) accounts. By meeting short-term credit needs, the KCC scheme has played a crucial role in enhancing agricultural productivity and boosting farmers' incomes. The KCC-Modified Interest Subvention Scheme (KCC-MISS) has been offering loans to farmers at an effective subsidized rate of interest at 4 percent.
To further ensure easy access to affordable credit, the Reserve Bank of India (RBI) has increased the collateral-free KCC loans from Rs 1.6 lakh to Rs 2 lakh. In a major step forward, the Union Budget 2025-26 has enhanced the credit limit under the Modified Interest Subvention Scheme (MISS) from ?3 lakh to Rs 5 lakh. This move is expected to reduce financial stress on small and marginal farmers while promoting greater investment in agriculture. This will significantly help in meeting the increased working capital requirements of the farmers for crop production, horticulture, animal husbandry and fisheries.