A major portion of India's population depends on the agriculture sector for their livelihood making it one of the most significant sectors. Experts believe that the upcoming Union Budget should maintain its focus on enhancing productivity and developing the necessary infrastructure to ensure sustained growth in the agriculture sector, while also working towards increasing rural incomes.
Boost To Agricultural Infrastructure
Akshat Gupta, Practice Leader, Food and Agriculture at Praxis Global Alliance said that the industry expects a higher allocation than the previous Rs 1.52 lakh crore to enhance agricultural infrastructure, particularly in cold storage, warehousing, and supply chain management. These investments are critical to reducing post-harvest losses and improving market access for farmers.
“We urge the government to reduce and standardize agricultural loan interest rates to 3-5 per cent, easing financial burdens and improving access to credit. Additional capital support for micro-irrigation systems, solar pumps, and watershed projects is also essential to empower small and marginal farmers,” he added.
Financial Support For Agritech Startups
Rohit Bajaj, Co-Founder of Balwaan Krishi, noted, “As we approach Budget 2025, it’s clear this is a pivotal moment to address key challenges and unlock the full potential of India’s agritech sector and MSME manufacturers. Agriculture, contributing nearly 18 per cent to the GDP and employing over 40 per cent of our workforce, remains under-optimised in innovation and technology adoption, while MSMEs drive more than 30 per cent of manufacturing output, often under financial and operational strain.”
“Policy and financial support for agritech startups and MSMEs will be crucial. A 10-year tax holiday for agritech startups can spark innovation and encourage entrepreneurs to develop scalable solutions. Subsidies of up to 50 per cent on capital expenditure and low-interest loans with extended repayment periods can ease financial pressures on startups and manufacturers alike, enabling investment in advanced technologies and tools,” he opined.
PLI Schemes Specific To Agri-tools And Machinery
Bajaj further said that for MSME manufacturers, introducing Production Linked Incentive (PLI) schemes specific to agri-tools and machinery could significantly enhance production capabilities. Enhanced allocation for the Agriculture Infrastructure Fund (AIF) could support the creation of robust supply chains, while rural broadband connectivity and digital marketplaces would further ensure equitable access to markets and better pricing for both producers and manufacturers.
“I strongly advocate for the establishment of a dedicated R&D fund of Rs 1,000–2,000 crore, focusing on advancements in precision farming, climate-resilient crops, and affordable tools for small-scale farmers. Simplifying regulatory processes through single-window clearance systems is essential for startups and manufacturers to overcome delays and foster innovation,” he said.
Harsh Vardhan Bhagchandka, President, IPL BIOLOGICALS anticipates a transformative budget that aligns with the pivotal role of biofertilizers and biopesticides in sustainable agriculture.
“Our foremost expectation is the exemption of GST on biofertilizers and biopesticides, fostering affordability and accessibility for farmers. This step would catalyze the adoption of eco-friendly agricultural practices, promoting a harmonious balance between productivity and environmental stewardship,” Bhagchandka noted.
“Moreover, we look forward to the implementation of a Production Linked Incentive (PLI) scheme specifically tailored for biologicals. This strategic measure would not only encourage indigenous production but also stimulate research and development, fortifying India's position as a global hub for bio-based agricultural solutions. Recognizing the significance of transitioning from chemical-based to biological farming, IPL BIOLOGICALs urges the government to introduce incentives for farmers making this shift. Financial rewards or subsidies would serve as a catalyst, motivating farmers to embrace sustainable practices that benefit both the environment and crop yields,” he concluded.
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