Budget 2026: According to industry experts, the Union Budget 2026-2027 presents a significant opportunity to transform agriculture into a robust engine of economic growth from being merely considered a welfare sector.
Prior to the introduction of the Union Budget 2026 by Finance Minister Nirmala Sitharaman on February 1 on the floor of the parliament, industry leaders and experts from the agriculture sector have appealed to the government to increase investment in digital infrastructure and climate-smart farming, while also prioritising the adoption of modern technologies. Agriculture experts believe these steps will be instrumental in bringing about a significant transformation in a sector that employs nearly half of the country’s population but contributes a relatively small share to national output.
Agriculture emerges as a strong and reliable driver of economic growth
According to industry experts, the Union Budget 2026-2027 presents a significant opportunity to transform agriculture into a robust engine of economic growth from being merely considered a welfare sector. Amit Vatsyayan, GPS–Agriculture, Livelihood, Social and Skills Leader at Ernst & Young India, has stressed that agriculture is no longer viewed solely through a welfare lens but is recognised as a reliable means of economic development that can contribute significantly to productivity, employment, rural demand, and resilience.
Dairy sector puts forward key demands
Their key expectations from the budget include subsidies on quality fodder and chromosome-sorted semen to enhance animal productivity and expansion in the capacity of veterinary colleges, which will ultimately address the shortage of veterinarians in the country, aiming to increase the number from 68,000 to 110,000–120,000.
The government should prioritise higher investment in agricultural assets
Amit Vatsyayan stated that there is a need for enhanced investment in micro-irrigation, watershed management, aquifer recharge, and renewable energy-based agricultural assets. According to Vatsyayan, these steps will have a holistic impact, as they will not only promote climate-resilient farming but also strengthen the rural economy.
A major push for digital infrastructure
According to Swapnil Jadhav, founder and CEO of Mapmycrop, investment in building robust digital infrastructure and easy credit access will have a transformational impact, as these are crucial for the widespread adoption of precision agriculture. The boost to digital infrastructure includes special emphasis on agri-drones, IoT sensors, and AI-based analytics.
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