Fiscal Priorities for Indian Agriculture: A Five-Year Review of Union Budget Trends (2021-2025)

Abstract

Abstract

DOI: https://doi.org/10.82471/p0wfx-6eb36

India's agriculture sector, contributing around 18% to gross value added while employing over 42% of the workforce, faces persistent issues like small landholdings, climate variability, and infrastructure gaps. This study examines Union Budget allocations from 2021-22 to 2025-26, revealing a nominal increase from Rs.1.23 lakh crore to Rs.1.52 lakh crore, yet stagnant as a percentage of GDP at under 0.6%. Key schemes such as PM-KISAN, PMFBY, and new missions for pulses, oilseeds, and natural farming dominate, with credit targets surging from Rs. 16.5 lakh crore to Rs.25 lakh crore. Findings highlight a welfare-heavy approach (over 90% of funds), sidelining research and infrastructure, which limit productivity gains amid rising input costs and weather risks. Recommendations include reallocating 20-30% to R&D, climate-resilient tech, and private partnerships for sustainable growth. This analysis draws on official budget documents and secondary sources to inform policy for food security and rural prosperity

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