Economic Survey 2025-26 Unveils Strategic Blueprint for Agricultural Revitalization
The recently tabled Economic Survey 2025-26 has laid out a detailed and forward-looking roadmap aimed at fundamentally strengthening India's vast agriculture sector. This comprehensive strategy pivots on deepening structural reforms, aggressively promoting climate-resilient technologies, and significantly improving risk management frameworks to safeguard farmer livelihoods.
Core Pillars of the Agricultural Strategy
The survey's core strategy emphasizes a multi-pronged approach to enhance sectoral efficiency and farmer returns. A central focus is placed on empowering Farmer Producer Organizations (FPOs) and revitalizing the cooperative ecosystem to improve collective bargaining power. Concurrently, the plan calls for a major overhaul of agricultural markets and logistics infrastructure to reduce waste and improve price realization for producers.
A key thrust area identified is attracting substantially greater private sector investment into critical segments like food processing, cold-chain infrastructure, and the production of high-value agricultural products. This infusion is deemed vital for boosting the competitiveness of Indian agri-products in both domestic and international export markets.
Expanding High-Growth Segments and Employment
The survey highlights the immense potential in expanding high-growth agricultural segments to support inclusive economic development. Specific focus is directed towards horticulture, agroforestry, dairy, poultry, and fisheries. The growth in these allied activities is expected to be a significant engine for job creation, particularly in rural areas, thereby contributing to broader socio-economic stability.
The document underscores the sector's critical macroeconomic importance. Agriculture and allied activities are projected to contribute 15.6% of India's national income at current prices in FY26. More crucially, it employs a staggering 46.1% of the country's workforce. Given this outsized role in employment, the survey asserts that a robust agricultural performance remains central to India's overall inclusive growth trajectory and long-term food security.
Addressing Infrastructure and Sustainability Priorities
The outlined priorities are both practical and transformative. They include:
- Improving access to assured irrigation through the rejuvenation of traditional water bodies and widespread adoption of micro-irrigation systems like drip and sprinkler irrigation.
- Strengthening agricultural research and development through enhanced public-private collaboration.
- Implementing reforms in the fertilizer sector to correct imbalances and restore long-term soil health.
- Promoting strategic crop diversification aligned with regional water availability and overarching sustainability goals.
Sectoral Performance and Production Trends
The survey notes a resilient performance from the agriculture sector over the past decade. Over the last five years, the sector expanded at an average annual rate of about 4.4% at constant prices, with a decadal growth (FY16-FY25) of 4.45%—the highest compared to previous decades. This growth has been primarily driven by the stellar performance in livestock (7.1%) and fishing & aquaculture (8.8%), followed by the crop sector at 3.5%. In Q2 of FY26, the agriculture sector grew by 3.5%.
On the production front, India's foodgrain output has shown steady growth. Production is estimated to have reached 357.7 million tonnes (LMT) in the agriculture year (AY) 2024-25, marking an increase of 25.4 million tonnes over the previous year. This growth was propelled by higher output of key staples like rice, wheat, maize, and coarse cereals.
Navigating Critical Challenges for Sustainable Growth
While acknowledging new opportunities from advances in irrigation, digital tools, and strengthened value chains, the survey candidly addresses persistent structural challenges. These include:
- The prevalence of small and fragmented landholdings which limit economies of scale.
- Significant climate risks, including erratic weather patterns, rising temperatures, and extreme events that directly threaten crop yields.
- Acute water scarcity, especially in regions heavily dependent on monsoon rainfall.
- Productivity gaps and weak market integration that continue to depress farm incomes.
The survey argues that price and income-support policies remain essential because farm incomes are highly vulnerable to weather shocks and market volatility. For small and marginal farmers with limited resilience, assured income and fair prices provide the basic stability needed to encourage productive investment and sustain viable livelihoods.
The Way Forward: Innovation and Digital Transformation
Looking ahead, the Economic Survey posits that agriculture will be central to achieving the vision of a Viksit Bharat (Developed India). It calls for continuity and focus on innovation, including:
- Developing improved seed varieties resistant to pests, diseases, and climate stress.
- Adopting modern farming techniques that maximize resource efficiency.
- The widespread adoption of digital technologies, such as precision agriculture tools and data analytics, to optimize farming operations and yield predictions.
Ultimately, the survey concludes that addressing these multifaceted challenges will require region-specific interventions tailored to local agro-climatic conditions. Promoting a tailored mix of climate-resilient practices and drought-resistant crops is deemed critical for ensuring the long-term sustainability and productivity of Indian agriculture.
