Administrator
06 June 2026
The agriculture and allied sector accounts for about 18 percent of total Gross Value Added (GVA). The GVA of this sector increased significantly from Rs.20.9 lakh crore in 2014-15 to Rs.48.7 lakh crore in 2023-2024. During this period, the sector registered a compound annual growth rate (CAGR) of 8.83 percent at current prices.
Growth has also been supported by improvements within the crop segment. The GVA of crops rose from Rs. 12,92,874 crore in 2014-15 to Rs. 26,52,891 crore in 2023-24.
Enhanced Financial Support for Agriculture
Public investment in the agricultural sector has increased substantially over this period. Budgetary allocation for the Department of Agriculture and Farmers Welfare increased from Rs.27,663 crore in 2013-14 to Rs.1,40,528.78 crore for 2026-27. This significant rise reflects the sustained policy support and continued investment in agricultural infrastructure, strengthening overall agricultural expansion.
Growth Momentum in Foodgrain Production
Total foodgrain production has increased from 265.05 million tonnes in 2013-14 to 357.73 million tonnes in 2024-25. The growth has been driven by higher production of rice, wheat, maize, and coarse cereals. This also included millets, now promoted as Shree Anna. This growth has been supported by the National Food Security and Nutrition Mission (NFSNM). The mission promotes higher production of rice, wheat, pulses, and coarse cereals. It supports improved seeds, better agronomic practices, and technology adoption.
Efforts towards self-reliance are also visible in the oilseeds sector. Oilseeds registered the highest production of 42.99 Mt (2024-25), which is 56 percent higher than 2014-15 (27.51 Mt).
Edible oil import dependence declined from 63.2 percent in 2015-16 to 56.25 percent in 2023-24, indicating gradual progress. During this period, the area under oilseeds increased by over 18 percent. Production rose nearly 55 percent, while productivity increased about 31 percent.
The horticulture sector has also emerged as a key contributor to agricultural growth. It accounts for nearly 37 percent of the Gross Value Output within the crop sector. Production has increased from 280.70 million tonnes in 2013-14 to 369.05 million tonnes in 2024-25. This expansion indicates diversification towards high-value crops, supported by improved practices and market demand.
Alongside these sectoral improvements, agricultural policy has steadily expanded to strengthen production systems, support farmers, and build long-term resilience.
A Roadmap for Reforms: Strengthening India’s Agricultural Policy (2014-2026)
Over the past twelve years, agricultural policy has expanded across irrigation, soil health, markets, risk mitigation, and infrastructure. A series of focused initiatives has shaped this transition towards a more integrated and farmer-centric agricultural framework.
Initial reforms concentrated on improving productivity and resource efficiency. Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) expanded irrigation coverage and promoted water-use efficiency. The Soil Health Card Scheme enabled scientific nutrient management. Rashtriya Gokul Mission supported indigenous breeds and dairy productivity.
The focus then widened to reducing production risks and improving market access. Pradhan Mantri Fasal Bima Yojana (PMFBY) expanded crop insurance coverage, while e-NAM enabled digital agricultural trading and wider market integration. The MSP reform of 2018 strengthened price assurance by fixing MSP at 1.5 times the cost of production.
Farmer income support and social security gained greater emphasis in subsequent years. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) introduced direct income support. Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) created a pension framework for small and marginal farmers. Agriculture Infrastructure Fund (AIF) and PM Kisan Sampada Yojana (PMKSY) increased Investment in post-harvest infrastructure and value addition.
Institutional reforms and cooperative-led development also gained momentum. The Ministry of Cooperation strengthened cooperative governance and expanded cooperative-based economic activities.
Further, recent initiatives have focused on diversification and self-reliance. National Mission on Edible Oils- Oil Palm (NMEO-OP) and National Mission on Edible Oils-Oilseeds (NMEO-OS) promoted domestic edible oil production. Pradhan Mantri Kisan Samriddhi Kendras (PMKSK) improved access to inputs and advisory services. Newer interventions, such as the Pradhan Mantri-Dhan Dhaanya Krishi Yojana (PM-DDKY), aim to strengthen productivity in key crops. The Mission for Aatmanirbharta in Pulses focuses on reducing import dependence and improving domestic production.
Empowering the Indian Farmer: Financial Stability and Social Security
Over the past twelve years, government initiatives expanded across the agricultural cycle, from cultivation and insurance coverage to procurement. These interventions also strengthened direct income assistance for farmers.
Institutionalizing Farmer Income Support through Direct Benefit Transfers
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) provides assured income support to small and marginal farmers. It ensures meeting agricultural and household expenses while reducing dependence on informal credit sources.
Under the scheme, each eligible farmer family receives an annual financial assistance of Rs. 6,000. The amount is transferred in three equal instalments of Rs. 2,000through the Direct Benefit Transfer (DBT) mechanism.
Since its inception in March 2026, PM-KISAN has disbursed over Rs. 4.28 lakh crore through 22 instalments. This has benefitted more than 9.44 crore farmer families nationwide. Over 25 percent of benefits have accrued to women beneficiaries, reflecting the scheme’s inclusive outreach across rural households.
The scheme has emerged as one of the world’s largest DBT initiatives for farmers. It reflects a large-scale institutional mechanism for delivering income assistance directly to beneficiaries.
Securing the Harvest through Crop Insurance and Risk Mitigation
Agriculture remains highly vulnerable to droughts, floods, cyclones, pest attacks, and other natural uncertainties. Such risks can cause significant income losses and disrupt agricultural continuity.
Pradhan Mantri Fasal Bima Yojana (PMFBY) provides farmers with a simple, affordable, and comprehensive crop insurance system. PMFBY covers the entire crop cycle, including pre-sowing and post-harvest losses. The scheme follows the principle of “One Nation, One Crop, One Premium”, ensuring uniform premium rates across the country.
