As India gears up for the FY27 Budget, leaders and experts from the agriculture sector are rallying for increased investments in digital infrastructure, climate-resilient farming practices, and technology adoption. The sector, which employs nearly 45 percent of the workforce, contributes only around 18 percent to the gross value added, making this Budget a crucial opportunity to position agriculture as a driver of economic growth.
Amit Vatsyayan, Leader for GPS-Agriculture, Livelihood, Social and Skills at EY India, emphasised that agriculture is increasingly seen as an engine of economic growth, capable of boosting productivity, employment, rural demand, and resilience. He highlighted the need for investments in micro-irrigation, watershed management, aquifer recharge, and renewable-powered agricultural assets. These measures, he argued, would not only support sustainability but also stimulate rural demand, stabilise farm incomes, and strengthen food security.
The dairy sector has also outlined specific needs. Brahmani Nara, Executive Director at Heritage Foods Ltd, pointed to the positive impact of the GST rationalisation in September 2025, which has accelerated consumer demand for high-protein and health-focused products. Nara outlined three Budget priorities for the sector: subsidised access to quality feed and chromosome-sorted semen to improve animal productivity; expanding veterinary college capacity to address the shortfall between India’s 68,000 registered veterinarians and the requirement of 110,000-120,000; and providing increased capital subsidies for mini-dairy units, with a focus on supporting women entrepreneurs.
Experts also emphasised the need for green infrastructure and climate-resilient technologies. Vatsyayan called for expanding public-private partnerships in storage, logistics, and agricultural research and development to reduce post-harvest losses. He also suggested adopting cluster-based farmer schools anchored in Farmer Producer Organisations (FPOs) and Krishi Vigyan Kendras to accelerate technology adoption, drawing on international examples like Japan’s farmer school model.
Digital infrastructure is another focus area. Swapnil Jadhav, Founder and CEO of MapMyCrop, urged the government to enhance digital tools and credit linkages to scale precision agriculture. He explained that technologies such as agri-drones, IoT sensors, and AI-driven analytics have the potential to improve yields, optimise water and fertiliser use, and strengthen climate resilience across India’s 140 million farm holdings. Jadhav recommended targeted subsidies, robust public-private partnerships, and R&D tax incentives to facilitate integration with national platforms like AGMARK-NET and e-NAM.
Structural reforms remain critical, according to Soumyak Biswas, Partner for Agriculture at BDO India. He pointed out ongoing challenges, including small and fragmented landholdings, low investment in allied sectors, high post-harvest losses, and underfunded research. He suggested prioritising climate-smart agriculture through increased funding for DARE, strengthening allied sectors such as livestock and fisheries, empowering FPOs via market-linked strategies and credit guarantees, and incentivising diversification into horticulture, pulses, and oilseeds to reduce reliance on water-intensive crops.
Vatsyayan highlighted the role of AGRISTACK as a digital public good, explaining that integrating farmer data, land records, credit, insurance, extension services, and market platforms could enable precision targeting, reduce transaction costs, and attract private investment, serving as the backbone for the sector’s transformation.