Syllabus: GS–III & V: Inclusive Growth

Why in the news? 

 The Union Budget 2026-27 has significantly increased allocation for the agriculture and farmers’ welfare sector, signalling renewed policy focus on rural growth and income security.

More About the news

•  The government has allocated Rs 1,32,561 crore for agriculture and farmers’ welfare, which is 2.48% of the total budget (Rs 53.50 lakh crore). 
• This marks a 4.14% increase over the previous fiscal year. Separately, Rs 1,70,944 crore has been earmarked for fertiliser subsidy, aimed at reducing input costs and ensuring affordable fertilisers.

Key Allocations and Schemes

• Rs 63,500 crore allocated for Pradhan Mantri Kisan Samman Nidhi, which provides direct income support to farmers.
• Rs 9,967 crore for agricultural education and research, mainly through the Indian Council of Agricultural Research, although slightly reduced from last year.
• Rs 150 crore for Bharat-VISTAAR, an Artificial Intelligence-based multilingual platform integrating AgriStack and scientific advisory systems for better farm decisions.
• Rs 350 crore for promoting high-value crops such as coconut, sandalwood, cocoa, cashew, agarwood, walnuts and almonds.
• Rs 104.17 crore allocated in the budget to Assam under the ‘Mission for Atmanirbhar in Pulses’ to enhance production.
• The budget’s strong support for the textile sector, including the National Fibre Scheme, modernised clusters, and Mega Textile Parks, will directly benefit farmers cultivating natural fibres like cotton, jute, silk, and wool.

What is New?

• Focus on diversification towards horticulture, nuts, medicinal plants and natural fibres.
• Support to coconut farmers through a Coconut Promotion Scheme.
• Dedicated programme for cashew and cocoa to make India self-reliant.
• Integration of agriculture with textile, food processing and Ayurveda value chains.
• Development of 500 reservoirs and Amrit Sarovars for integrated farming and fisheries.

Important Terms Explained

• Fertiliser Subsidy: Government support to reduce fertiliser prices for farmers.
• AgriStack: Digital database integrating land records and farmer information.
• Value Addition: Processing raw produce into higher-value products.
• High-Density Cultivation: Scientific method to increase yield per hectare.
• Allied Activities: Fisheries, horticulture, dairy and livestock farming.

Concerns and Challenges

• No statutory guarantee for Minimum Support Price.
• Farm debt and climate vulnerability remain major issues.
• Irrigation gaps and fragmented landholdings persist.

Overall, the budget reflects a shift from mere production support to technology, diversification and rural entrepreneurship, aligning with the vision of Viksit Bharat 2047.

Exam Hook

Key Takeaways:

• Agriculture allocation increased to Rs 1,32,561 crore.
• Separate fertiliser subsidy of Rs 1,70,944 crore.
• Emphasis on Artificial Intelligence, high-value crops and value chains.
• Focus on allied sectors like fisheries and textiles.

Mains Question:

Discuss how the Union Budget 2026-27 seeks to transform Indian agriculture through diversification, digitalisation and value chain integration. Highlight the remaining structural challenges.

One-line wrap: Budget 2026-27 signals a shift toward resilient, technology-driven and diversified agriculture for sustainable farmer welfare.

Source