Budget FY27: Agriculture Industry Pushes for Digital Infrastructure, Climate-Resilient Farming

Sector Seen as Growth Engine Ahead of Union Budget​

As preparations gather pace for the Union Budget for FY27, agriculture industry leaders are calling for higher investments in digital infrastructure, climate-resilient farming practices, and technology adoption to transform a sector that supports nearly half of India’s workforce but contributes less than one-fifth to national output.

Agriculture and allied activities account for about 45 percent of India’s workforce while contributing roughly 18 percent to gross value added. Industry voices say Budget 2026-27 offers a key opportunity to reposition agriculture as a driver of productivity, employment, and rural demand rather than being viewed only through a welfare lens.

EY India’s Leader for GPS Agriculture, Livelihood, Social and Skills, Amit Vatsyayan, said agriculture is increasingly being recognised as a credible engine of economic growth capable of strengthening resilience and food security while supporting long-term economic expansion.

Dairy Sector Flags Priority Areas​

Heritage Foods Ltd Executive Director Brahmani Nara highlighted that the GST rationalisation undertaken in September 2025 has accelerated consumer preference for high-protein and health-focused dairy products such as paneer, cheese, ghee, and butter in the organised segment.

She noted that government programmes including the Rashtriya Gokul Mission and the National Digital Livestock Mission have already brought more than 300,000 farmers into the organised dairy ecosystem. Against this backdrop, the dairy industry has outlined three key expectations from the upcoming Budget. These include subsidised access to quality cattle feed and chromosome-sorted semen to improve animal productivity, expansion of veterinary education capacity to address the gap between the existing pool of registered veterinarians and actual requirements, and higher capital subsidies for mini-dairy units with a focus on women entrepreneurs.

Green Infrastructure and Technology Adoption​

Vatsyayan stressed the importance of scaling green infrastructure and climate-resilient irrigation by investing in micro-irrigation, watershed development, aquifer recharge, and renewable-powered agricultural assets. He said such interventions not only support sustainability goals but also stimulate rural demand and help stabilise farm incomes.

He further called for stronger public-private partnerships in storage, logistics, and agricultural research and development to reduce post-harvest losses. Focused investments in seed systems were also flagged as essential to achieve self-reliance in pulses and other nutrition-sensitive crops.

Drawing on international practices such as Japan’s farmer school model, he suggested adapting cluster-based farmer schools anchored in Farmer Producer Organisations and Krishi Vigyan Kendras to speed up technology adoption at the grassroots level.

Digital Infrastructure Takes Centre Stage​

MapMyCrop Founder and Chief Executive Officer Swapnil Jadhav emphasised the need for strong digital infrastructure and seamless credit linkages to scale precision agriculture across the country.

He said agri-drones, IoT sensors, and AI-driven analytics can significantly improve yields, optimise water and fertiliser usage, and strengthen climate resilience across nearly 140 million farm holdings. Jadhav called for targeted subsidies, robust public-private partnerships, and research and development tax incentives to accelerate integration with national platforms such as AGMARK-NET and e-NAM, helping shift the sector towards a technology-driven agriculture ecosystem.

Structural Reforms Highlighted​

BDO India Partner for Agriculture Soumyak Biswas pointed to persistent structural challenges facing the sector. These include small and fragmented landholdings, limited investment in allied activities, high post-harvest losses, and underfunded agricultural research.

He outlined key priorities such as scaling climate-smart agriculture through higher funding for agricultural research and education, strengthening allied sectors like livestock and fisheries, empowering Farmer Producer Organisations with market-linked strategies and credit guarantees, and promoting diversification into horticulture, pulses, and oilseeds to reduce dependence on water-intensive crops.

Vatsyayan added that effective implementation of AGRISTACK as a digital public good could form the backbone of this transformation. By integrating farmer data, land records, credit, insurance, extension services, and market platforms, AGRISTACK could enable precision targeting, lower transaction costs, and attract greater private investment into the agriculture sector.