Economic Survey 2025-2026: Agriculture sector needs sustained investment, innovation

New Delhi: Pointing out that the agriculture sector faces substantial challenges, the Economic Survey suggested that sustained investment and innovation can make the farm sector more resilient and competitive.

Noting that water scarcity remains a pressing and critical challenge in regions predominantly dependent on monsoon rainfall, the survey stated: “Climate change poses a significant challenge, with erratic weather patterns, rising temperatures, and extreme events affecting crop yields.”

“Promoting climate-resilient agricultural practices—such as drip irrigation and sprinkler systems—as well as diversifying into high-yield varieties and an appropriate crop mix of climate-resilient/drought-resistant crops is critical for sustainability,” it added.

Highlighting that agricultural growth will play a major role in making India a developed country by 2047, the survey recommended that the government focus on deepening ongoing reforms, promoting climate-resilient technologies, empowering Farmer Producer Organizations (FPOs), strengthening cooperatives, improving markets and logistics, and enhancing risk management.

The survey argued that the sector’s future lies not just in producing more foodgrains, but in expanding high-growth areas such as horticulture, agroforestry, dairy, poultry, and fisheries.

These segments support inclusive economic development and job creation, particularly in rural communities.Agriculture and allied activities contribute nearly one-fifth of India’s national income but account for 46.1 per cent of the workforce, making the sector central to the country’s overall growth trajectory.

The sector has registered an average annual growth rate of around 4.4 per cent over the past five years at constant prices, with livestock and fisheries leading the gains. In the second quarter of fiscal year 2025-26, agriculture grew 3.5 per cent.“Agriculture will be central to achieving Viksit Bharat, driving inclusive growth and improving the livelihoods of millions,” the survey said.

Strengthening private sector participation in areas such as food processing, cold chain logistics, and the development of high-value agricultural products will be crucial to increasing competitiveness in both domestic and export markets.

Foodgrain production continues to rise over the years. It is estimated to have reached a record 3,577.3 lakh metric tonnes in the agriculture year 2024–25, an increase of 254.3 lakh metric tonnes over the previous year. Higher production of rice, wheat, maize, and coarse cereals—including millets, or Shree Anna—has driven this growth, the survey said.