UNION BUDGET 2025 - LIVE: In her Budget 2025, Union Finance Minister Nirmala Sitharaman shared plans that will benefit 1.7 crore farmers across India. The FM highlighted that the Prime Minister Krishi Yojana will introduce an Agri Districts Programme to boost agricultural development.
Finance Minister Nirmala Sitharaman announced the credit guarantee cover for Micro, Small and Medium Enterprises(MSME) will be significantly improved, while presenting the Budget 2025. For MSMEs, the guarantee limit will HIKE from Rs. 5.00-cR to Rs.10-Cr, unlocking an additional Rs. 1.5-La-Cr in credit over the next 5 years.
The scheme will focus on 100 districts that currently have low agricultural productivity. The government's goal is to improve crop production by encouraging crop diversification and sustainable farming practices. Further, there will be efforts to enhance post-harvest storage and improve irrigation facilities at both the Panchayat and block levels.
The scheme also aims to provide better access to both long-term and short-term credit for farmers. With a multi-sector approach, the government hopes to increase rural prosperity and resilience.
In last year’s Budget Rs.1.52 lakh crore was allocated to agriculture. FM Sitharaman had also announced the release of 109 high-yielding, climate-resilient varieties of crops, which are expected to help address India’s food production issues, particularly with pulses, wheat, rice, and oilseeds.
Despite efforts, India's agricultural sector still faces challenges, including stagnant yields and a lack of new seeds. While a large portion of the population relies on farming, it remains an inefficient and low-income sector. Experts stress the importance of creating more job opportunities in farming and promoting commercialization.
Currently, agriculture’s contribution to India's economy is less than 15 percent, while the industrial and service sectors continue to grow. However, agriculture’s role is still vital as more than 70 percent of the population depends on rural incomes, with a large percentage of poor people living in rural areas.