NEW DELHI: Stressing that agriculture and the rural economy remain the backbone of India’s development, Prime Minister Narendra Modi on Friday said adoption of technology, diversification of crops and focus on export-oriented production will be key to sustain growth in the agriculture sector and boost rural incomes.
In the third webinar of the Budget Webinar Series on Agriculture and Rural Economy, Modi said digital platforms such as e-NAM and the government’s digital agriculture infrastructure initiative AgriStack are changing the way farmers access markets and services. He also highlighted diversification programs such as the National Mission on Edible Oils and Pulses and the National Mission on Organic Farming, saying that these initiatives are strengthening the sector.
Read also | Why the crisis in West Asia may make your biryani more expensive this year
The focus comes at a time when agriculture and allied activities are projected to account for 15.6% of India’s national income at current prices in FY26, while employing 46.1% of the workforce, making the sector central to the country’s growth trajectory, food security and inclusive development.
According to the Economic Survey 2025-26, the agriculture and allied sector has grown at an average annual rate of about 4.4% at constant prices over the past five years. The decadal growth of 4.45% during FY16-FY25, the highest compared to previous decades, was driven mainly by livestock (7.1%) and fisheries and aquaculture (8.8%), followed by crops at 3.5%.
Modi also drew attention to the potential of regional crops and emphasized the need to expand export-oriented agriculture. The budget emphasized high-value products such as coconut in Kerala and Tamil Nadu, as well as cashew, cocoa and sandalwood, to improve productivity and quality to meet global demand.
The fishing and livestock industries were also identified as key drivers of rural growth. With India already among the world’s largest producers of milk and fish, the government plans to bridge the gap between current production and the full potential of the sector.
In fisheries, the government is planning scientific mapping of reservoirs and water bodies and cluster-based planning models that could significantly increase production, potentially adding about 2 million tonnes to the current production of around 400,000 tonnes.
In animal breeding, emphasis will be placed on improving the quality of breeding, strengthening disease prevention systems and supporting scientific livestock breeding. The government is also supporting the GOBAR-Dhan program to convert organic waste from villages into biogas and other energy sources, improving sanitation while promoting rural energy security.
Read also | US positive trade in seafood, coffee; neutral for most agricultural sectors
The government is also expanding the digital infrastructure for agriculture through AgriStack, recognizing that the success of the policy depends on the adoption of technology at the local level. About 90 million farmers have been issued so far and digital surveys of nearly 300 million plots have been completed.
Read also | The World Bank warns that global agricultural subsidies directly linked to deforestation
Modi also emphasized on women-led development in rural areas. Building on the success of the ‘Lakhpati Didi’ initiative, which enabled three million rural women to earn an annual income ₹1 lakh or more, the government wants to add another three million women entrepreneurs by 2029.
The prime minister reiterated that agriculture remains a state subject and stressed that central initiatives must be complemented by effective implementation at the state level. “The aim is to ensure that every penny of the budget serves its intended purpose as quickly as possible,” the Prime Minister said, stressing that collaboration between agro-experts, industry players and farmers is essential to scale up the effort.
