MUMBAI, 1 February 2026: The Union Budget 2026–27 places agriculture and allied sectors at the centre of India’s growth strategy, combining higher public spending, digital innovation, infrastructure expansion and market reforms to strengthen farmer incomes, food security and rural livelihoods.
From an AI-powered advisory platform and record fisheries allocation to fertilizer subsidies, dairy value chain investments and veterinary infrastructure expansion, the Budget signals a decisive shift toward productivity-led and technology-enabled agricultural growth.
AI-driven agriculture advisory: Bharat Vistaar
A key highlight is the launch of ‘Bharat Vistaar’ (Virtually Integrated System to Access Agricultural Resources), a multilingual AI-powered platform integrating AgriStack’s digital farmer database with ICAR’s scientific practices.
The tool aims to provide customised advisories on crops, inputs, markets and risk management, enabling farmers to make better decisions while reducing climate and price risks.
Anand Chandra, Co-founder & Executive Director, Arya.ag said, “Bharat Vistaar brings the promise of making agri-advisory more intelligent, timely, and accessible at the farmgate. By integrating AI with AgriStack and ICAR advisories in multiple languages, it can support better decisions on crops, inputs, and markets, especially for smallholder and first-generation women farmers.”
Fertilizers: INR 1.71 lakh crore to protect farmers
To shield farmers from global price volatility, the government has allocated INR 1.71 lakh crore for fertilizer subsidies.
The Budget ensures continued support under:
- Urea subsidy for domestic production and imports
- Nutrient Based Subsidy (NBS) for P&K fertilizers
- Direct Benefit Transfer (DBT) for transparent delivery
- Promotion of organic fertilizers and sustainable nutrient use
- The measures aim to keep fertilizers affordable while improving soil health and balanced nutrient application.
- Fisheries: Highest-ever allocation and export push
- The fisheries sector received its highest-ever support of INR 2,761.8 crore, with INR 2,500 crore under PMMSY.
Major reforms include:
- Duty-free fish catch by Indian vessels in EEZ and high seas
- Foreign port landings treated as exports
- Duty-free import limit for seafood processing inputs raised from 1% to 3%
- Development of 500 reservoirs and Amrit Sarovars
- Support for Fish FPOs, women-led groups and 200 startups
- These steps aim to enhance exports, reduce post-harvest losses and improve incomes across coastal and inland communities.
- Dairy & livestock: Infrastructure and doorstep services
- Animal Husbandry and Dairying received a strong push through:
- Expansion of veterinary infrastructure and mobile vet units
- Credit-linked subsidies for private veterinary colleges and hospitals
- Financial support to Livestock Farmer Producer Organisations (LFPOs)
- Strengthened milk collection, processing and value-addition
- Increased vaccination and disease-control funding
- Dividend reliefs and tax deductions for cooperatives further strengthen dairy ecosystems.
Sasikumar Kallanai, Co-founder & CEO, TenderCuts said, “The Union Budget's emphasis on productivity-led growth across agriculture and allied sectors, especially fisheries and animal husbandry, is a constructive step towards strengthening India's domestic food and protein ecosystem. Initiatives around better utilisation of inland reservoirs, support for Fish FPOs and women-led groups, and veterinary infrastructure can improve supply consistency, traceability, and income stability at the source.”
Innovation and crop science focus
CropLife India welcomed the Budget’s emphasis on innovation but called for stronger extension and R&D support.
Ankur Aggarwal, Chairman, CropLife India said, "Digital advisory delivers results only when backed by effective on-ground extension. Sustained investment in crop science R&D and faster access to modern technologies is essential to help farmers manage climate stress and rising pest pressure.”
“The Union Budget 2026 reinforces the shift towards high-value, climate-resilient agriculture anchored in productivity, technology and value chains. This aligns strongly with Bayer’s focus on science-based innovation, sustainable farming practices and integrated solutions that help small and marginal farmers build resilient and profitable farm systems,” Simon Wiebusch, Country Divisional Head, Crop Science Division of Bayer in India, Bangladesh & Sri Lanka said.
The association urged:
- 200% weighted deduction on R&D
- GST reduction on agrochemicals
- Stable customs duties
Industry view: Tech meets soil
Nishant Kanodia, Chairman, Matix Fertilisers & Chemicals, noted: “The future of food security lies at the intersection of biology and technology. Bharat Vistaar bridges the gap between tech and the soil.”
Rajnish Kumar, MicroSave Consulting added, "The emphasis on integrated fisheries and livestock value chains and AI-enabled productivity aligns well with the need for higher farm incomes. The real test will be rapid execution.”
The road ahead
Taken together, the Union Budget 2026–27 reflects a clear strategy: technology + infrastructure + affordability + value chains = higher farmer incomes.
If effectively implemented, these initiatives could accelerate India’s transition toward a resilient, export-competitive and climate-smart agricultural economy — strengthening both rural livelihoods and national food security.
By Jagdish Kumar