Initiatives Driving the Agricultural Growth in India

• 12 Jul 2025

Source: PIB 

Why in News?  

At the 16th Agriculture Leadership Conclave, the Union Minister of Commerce and Industry, highlighted major initiatives driving agricultural growth in India, focusing on soil health, credit access, digital innovation, and global trade. 

What are the Initiatives Driving the Agricultural Growth in India? 

• Minimum Support Price (MSP) Enhancements: MSP for several crops has seen significant increases, with pulses and oilseeds witnessing up to 98% higher MSP, directly benefiting farmers by ensuring remunerative prices for their produce. 
  • This policy aims to reduce farmers' vulnerabilities to market fluctuations and provide a financial cushion for their efforts. 
• Soil Health Cards: Over 25 crore Soil Health Cards have been distributed. SHCs provide farmers with vital information on the health of their soil, guiding them on the type and amount of fertilisers to use, thereby improving crop yield and reducing over-reliance on harmful chemicals. 
• Kisan Credit Card (KCC): Ensures wider access to crop loans and agricultural credit, supporting timely inputs and farm activities. 
  • As of 2024, there are 7.75 crore active KCC accounts with Rs 9.81 lakh crore in outstanding loans. Additionally, 1.24 lakh KCCs have been issued for fisheries and 44.4 lakh for animal husbandry activities. 
• PM-KISAN Samman Nidhi: It is a Central Sector scheme with 100% funding from Government of India. Under the scheme an income support of 6,000/- per year in three equal installments will be provided to all land holding farmer families. 
  • The fund will be directly transferred to the bank accounts of the beneficiaries. 
  • As of 2024, 11.8 crore farmers have received financial assistance, making it one of the world’s largest  Direct Benefit Transfer (DBT) schemes. 
• e-NAM Integration: 1,400 mandis have been linked with the electronic National Agriculture Market (e-NAM) to improve transparency and price realisation. 
• Fertiliser Subsidies: The Indian government budgeted over Rs 1.67 lakh crore– nearly 70% of India's agriculture budget–for fertiliser subsidy for the financial year 2025-26. Fertiliser subsidies are nearly 40% of India's total subsidy spending. 
• Free Trade Agreements (FTAs): India’s FTAs with Australia, UAE, EFTA nations, and the UK have opened up new international markets for Indian agri-products. 
• Digital Agriculture: Emphasis on AI, geospatial tech, weather forecasting, and vertical farming to modernize the farm sector. 
  • The Digital Agriculture Mission, approved in 2024, aims to build a farmer-centric digital ecosystem. It includes key components like AgriStack, which digitizes farmers' data, land, and crop details to ensure access to services like credit and insurance. 
• Support to Farmer Producer Organisations (FPOs): The “Formation and Promotion of 10,000 FPOs” scheme, launched in 2020, aims to empower small and marginal farmers by collectivising them for better market access, reduced input costs, and improved incomes.  
  • As of February 2025, around 30 lakh farmers (40% women) have joined FPOs.  
  • FPOs are supported by multiple ministries including Agriculture, and Food Processing. A dedicated Credit Guarantee Fund ensures improved credit access, enhancing the viability of FPOs and boosting rural entrepreneurship. 
• Agri-Exports and Value Addition: India’s agriculture and fisheries exports have reached Rs 4.5 lakh crore and hold the potential to scale up to Rs 20 lakh crore. 
• Infrastructure and Irrigation: Investments in warehousing, cold chains, drip irrigation, and organic/natural farming practices are being scaled up. 
  • The Agricultural Infrastructure Fund (AIF) scheme,  has been expanded to strengthen agrarian infrastructure through broader project eligibility, including viable community farming assets, integrated processing projects, and convergence with PM-KUSUM to promote clean energy. 
  • From 2015-2025, 96.97 lakh ha has been covered under micro irrigation through Per Drop More Crop (PDMC) Scheme, which includes 46.37 lakh ha under drip irrigation and 50.60 lakh ha under sprinkler irrigation. 

India’s Agricultural Growth  

• The agriculture & allied sector grew at 5% annually (FY17–FY23), with gross value added (GVA) share rising from 24.38% (2014-15) to 30.23% (2022-23). Agriculture income rose by 5.23% annually over the last decade. 
• In FY24, India’s agri-food exports reached USD 46.44 billion (11.7% of total exports). The share of processed food rose from 14.9% in FY18 to 23.4% in FY24, highlighting growing value addition. 

Drishti Mains Question:

Critically assess India's integrated approach towards agricultural growth and increasing the farmers’ income.

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Mains

Q. Explain various types of revolutions, took place in Agriculture after Independence in India. How have these revolutions helped in poverty alleviation and food security in India? (2017)

Q. Given the vulnerability of Indian agriculture to vagaries of nature, discuss the need for crop insurance and bring out the salient features of the Pradhan Mantri Fasal Bima Yojana (PMFBY). (2016)