Agriculture as a Propellant Towards a Viksit Bharat

India must shift from a consumption-led to an investment-led agriculture policy to ensure sustainable farmer income, boost productivity, and achieve the goal of Viksit Bharat (Developed India) by 2047.

Current Policy Issues Identified

Overdependence on Short-Term Support Measures

• Direct Benefit Transfers (DBT)
• Minimum Support Price (MSP)
• Fertiliser subsidies

Limited Capital Spending

• Infrastructure-related schemes under MoAFW and MoFPI: ~₹20,000 crore
• FPO promotion: < ₹600 crore

Missed Opportunity

• Budget allocations are tilted more towards increasing disposable income (e.g., personal income tax relief) than agricultural capital formation

Key Recommendations

1. Shift Towards Investment-Led Growth

• Move away from consumption-heavy schemes to:
  • Watershed management
  • Micro-irrigation systems
  • Post-harvest infrastructure
  • Mechanisation
  • Land aggregation and consolidation

2. Focus on Infrastructure and Value Chains

• Encourage PPPs in food processing clusters
• Strengthen supply chains to reduce post-harvest losses
• Enhance support for FPOs as a means of aggregation, extension, and quality input supply

3. Enable Systemic Reforms

• Revisit and implement reformed farm laws
• Phase out the dominance of APMCs
• Foster export-oriented FDI in agribusiness

Key Data Points

• Total Agriculture-Related Outlay (2024–25): ₹5.3 lakh crore (~11% of total Union Budget)
• Infrastructure Outlay (MoAFW + MoFPI): ~₹20,000 crore
• Credit and Insurance Schemes: ~₹35,000 crore
• FPO Promotion Allocation: < ₹600 crore

Identified Systemic Constraints

• Fragmented land holdings
• Inadequate access to quality seeds, inputs, and advisory
• Poor credit and insurance penetration
• Inefficient post-harvest handling and storage

Vision for Viksit Bharat 2047

• Aim: 8% annual growth in agriculture
• Need: Focus on efficiency, competitiveness, and sustainability
• Policy must prioritize investment in capacity building over revenue transfers

BL