Agriculture has always occupied a unique place in India’s economy. While sectors such as manufacturing, services and technology have driven much of the country’s modern economic expansion, agriculture continues to remain the backbone of rural India, supporting millions of livelihoods and ensuring food security for more than 1.4 billion people.
Over the past decade, the sector has witnessed significant changes driven by increased public investment, expanded farmer welfare programmes, technological interventions, higher institutional credit, irrigation expansion and diversification into allied sectors such as dairy, fisheries and livestock.
These developments have unfolded at a time when agriculture globally faces mounting pressures from climate change, rising input costs, water scarcity and market volatility. In India, policymakers have increasingly focused on strengthening resilience while simultaneously improving productivity and farmer incomes.
The result is an agricultural landscape that looks markedly different from what existed a decade ago.
Agriculture continues to anchor economy
Despite the rapid expansion of other sectors, agriculture and allied activities continue to play a critical role in India’s economic structure.
The sector contributes nearly 18 per cent of India’s Gross Value Added (GVA), underscoring its importance not only as a source of employment but also as a key driver of rural demand and economic stability.
The numbers highlight the scale of growth achieved over the past decade. Agriculture’s GVA has more than doubled from Rs 20.9 lakh crore in 2014-15 to Rs 48.7 lakh crore in 2023-24.
This growth reflects a combination of rising productivity, improved market access, higher government investment and the growing contribution of allied sectors such as dairy, fisheries and livestock.
Public expenditure on agriculture has also increased significantly.
The budget allocation for the Department of Agriculture and Farmers Welfare has risen from Rs 27,663 crore in 2013-14 to approximately Rs 1.40 lakh crore in 2026-27, reflecting the government’s increasing emphasis on rural development and agricultural growth.
Record foodgrain production signals rising productivity
One of the most visible indicators of agricultural transformation has been the steady increase in foodgrain production.
India’s foodgrain output has reached historic highs, rising from 265.05 million tonnes in 2013-14 to 357.73 million tonnes in 2024-25.
The increase has been recorded across major crops including rice, wheat, maize and oilseeds.
Several factors have contributed to this growth.
Expansion of irrigation infrastructure has reduced dependence on erratic monsoons in many regions. Improved access to quality seeds, fertilisers and extension services has enhanced productivity. Government support programmes and improved credit availability have enabled farmers to invest in better farming practices.
At the same time, technological interventions and scientific farming methods have helped improve yields and resource efficiency.
The achievement is particularly significant considering the increasing challenges posed by climate variability and shrinking landholdings.
PM-KISAN: Direct income support for farmers
Among the most significant policy interventions of the past decade has been the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN).
The programme was introduced to provide direct income support to farmers by transferring ₹6,000 annually into their bank accounts in three equal instalments.
Unlike traditional subsidy-based programmes, PM-KISAN directly places money in the hands of farmers, allowing them greater flexibility in managing agricultural expenses.
Since its launch, the scheme has emerged as one of the world’s largest direct benefit transfer programmes in agriculture.
More than Rs 4.28 lakh crore has been transferred to over 9.44 crore farmer families across the country.
For many small and marginal farmers, the assistance has helped meet expenses related to seeds, fertilisers, labour and other farm inputs.
The programme has also strengthened financial inclusion by encouraging the use of banking channels and digital transfers.
Crop insurance and risk management
Agriculture remains inherently vulnerable to weather-related risks.
Floods, droughts, pest attacks and unseasonal rainfall can severely impact farm incomes.
To address these uncertainties, the Pradhan Mantri Fasal Bima Yojana (PMFBY) was launched as a comprehensive crop insurance programme.
The scheme provides financial protection against crop losses while maintaining relatively low premium rates for farmers.
Over the years, insurance coverage has expanded significantly.
Claims worth approximately Rs 1.96 lakh crore had been paid to farmers under the scheme by December 2025.
The programme has become an important component of India’s agricultural risk management framework, helping reduce financial distress caused by natural calamities and adverse weather events.
Expanding irrigation and infrastructure
Water remains one of the most critical determinants of agricultural productivity.
Recognising this, the government launched the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) with the objective of expanding irrigation coverage and improving water-use efficiency.
The programme seeks to ensure that more farmland has access to reliable irrigation while promoting efficient water management practices.
Parallel investments have also been made in agricultural infrastructure.
The Agriculture Infrastructure Fund has emerged as a major initiative aimed at improving post-harvest management and strengthening rural supply chains.
Warehouses, cold storage facilities, processing units and logistics infrastructure are increasingly being viewed as essential components of agricultural development.
Improved infrastructure helps reduce post-harvest losses, enhances market access and supports value addition.
Institutional credit reaches new highs
Access to affordable credit is essential for modern agriculture.
Over the past decade, institutional lending to agriculture has increased dramatically.
Ground-level credit flow to agriculture has risen from Rs 7.3 lakh crore in 2013-14 to Rs 28.67 lakh crore in 2024-25.
The expansion reflects efforts to integrate farmers into formal financial systems and reduce dependence on informal lenders.
The Kisan Credit Card programme has played a significant role in this process by providing timely access to working capital for agricultural activities.
Greater access to credit has enabled farmers to invest in machinery, irrigation systems, quality inputs and diversification opportunities.
MSP procurement sees major expansion
Minimum Support Price procurement remains one of the most significant mechanisms through which the government supports farmers.
Over the years, procurement operations have expanded substantially across wheat, paddy, pulses, oilseeds and cotton.
Data indicate that total procurement increased from 698.7 million tonnes during 2004-14 to approximately 1,229.2 million tonnes during the 2014-26 period.
The financial scale of procurement has also grown dramatically.
The value of crops procured at MSP reached Rs 26.32 lakh crore during 2014-26, nearly three and a half times higher than during the previous decade.
The expansion has strengthened income support for farmers while contributing to national food security.
For millions of farmers, MSP procurement provides a stable market and predictable returns for their produce.
Digital agriculture takes centre stage
Perhaps the most transformative shift underway in Indian agriculture is the rapid adoption of digital technologies.
Under the Digital Agriculture Mission, authorities have created more than 7.63 crore farmer IDs and digitised approximately 23.5 crore crop plots.
The initiative seeks to create an integrated digital ecosystem that improves service delivery, enhances transparency and supports evidence-based policymaking.
Technology is increasingly being used across multiple stages of the agricultural value chain.
The e-NAM platform has connected agricultural markets electronically, helping improve price discovery and market access.
The Soil Health Card programme provides farmers with scientific information about soil nutrient status, enabling more efficient fertiliser use.
Meanwhile, Kisan e-Mitra and the National Pest Surveillance System are improving access to advisory services and early warning mechanisms.
One of the most innovative initiatives is Namo Drone Didi, which promotes the use of drones in agriculture for crop monitoring, pesticide spraying and precision farming.
These technologies are expected to reduce costs, improve productivity and make agriculture more sustainable.
Dairy, fisheries and livestock drive rural growth
Indian agriculture is increasingly moving beyond crop cultivation alone.
Allied sectors such as dairy, fisheries, poultry and livestock are emerging as major contributors to rural incomes.
India continues to maintain its position as the world’s largest milk producer.
Milk production increased from 146.31 million tonnes in 2014-15 to 247.87 million tonnes in 2024-25.
The dairy sector has become a critical source of regular income for millions of rural households, particularly small and marginal farmers.
Similarly, fisheries have recorded impressive growth.
Fish production has nearly doubled over the past decade, contributing significantly to exports, nutrition and employment.
Poultry production, honey production and ethanol manufacturing have also expanded considerably, creating additional opportunities for income diversification.
This diversification is increasingly important because it reduces dependence on a single crop cycle and strengthens resilience against market fluctuations and climatic uncertainties.
The transformation of Indian agriculture over the past decade reflects a broader shift from a production-centric model toward a more comprehensive ecosystem approach.
Today, agricultural policy encompasses income support, insurance, irrigation, infrastructure, technology, market access, value addition and allied sectors.
However, significant challenges remain.
Climate change continues to pose risks through extreme weather events and changing rainfall patterns. Fragmented landholdings limit economies of scale. Water stress affects several agricultural regions, while price volatility remains a concern for many farmers.
Addressing these challenges will require continued investment, innovation and policy support.
Nevertheless, the progress achieved over the last decade demonstrates how a combination of public investment, technology adoption, institutional support and farmer-centric programmes can reshape the agricultural landscape.
As India moves toward becoming a developed economy, agriculture will remain central to its growth story, not only as a provider of food security but also as a source of livelihoods, rural prosperity and economic resilience.
The sector’s evolution from traditional farming toward a diversified, technology-enabled and market-oriented ecosystem may well define the future of rural India in the decades to come.
