Budget 2026: Agri sector pitches for tech push, climate-smart infrastructure

India's agricultural sector, a cornerstone of its economy, is currently at a crucial juncture, navigating the dual challenges of ensuring food security for a burgeoning population and adapting to the profound impacts of climate change. Ahead of Budget 2026, a significant demand has emerged from agricultural leaders: a substantial increase in investments towards digital infrastructure, climate-smart practices, and technological advancements. This proactive pitch is not merely a request for funds but a strategic vision to transform Indian agriculture, enhance productivity, and generate much-needed job opportunities.

Historically, agriculture has been the primary employer in India, though its share in the GDP has gradually declined to around 15-18% over the years. Despite this, it continues to support over half of the country's population directly or indirectly. The Green Revolution of the 1960s and 70s, spearheaded by scientists like M.S. Swaminathan, dramatically increased food grain production, transforming India from a food-deficit nation to a self-sufficient one. However, this revolution primarily focused on increasing yields through high-yielding varieties, fertilizers, and irrigation, often leading to unsustainable practices and regional disparities. Subsequent decades saw various government interventions, including price support mechanisms (Minimum Support Price - MSP), irrigation projects, and credit facilities, yet fundamental issues like low productivity, fragmented landholdings, post-harvest losses, and vulnerability to monsoon vagaries persisted.

The current demand for Budget 2026 reflects an understanding that a 'Second Green Revolution' must be driven by technology and sustainability. Digital infrastructure in agriculture encompasses a wide range of applications: precision farming using sensors and IoT, drone technology for crop monitoring and pesticide spraying, AI-driven advisory services for farmers, and digital platforms like e-NAM (National Agriculture Market) for better market access and price discovery. Climate-smart practices involve developing drought-resistant or flood-resistant crop varieties, promoting agroforestry, improving water management techniques (e.g., micro-irrigation under Pradhan Mantri Krishi Sinchai Yojana), and adopting organic farming methods. Technological advancements also include better farm mechanization, cold chain infrastructure, and food processing units to reduce post-harvest losses, which are estimated to be as high as 15-20% for certain crops.

Key stakeholders in this push include millions of Indian farmers, who are the direct beneficiaries of improved productivity and market access. Farmer Producer Organizations (FPOs), increasingly promoted by the government, play a vital role in aggregating demands and adopting new technologies. Agri-tech startups and established technology companies are crucial partners in developing and deploying these solutions. Agricultural universities and research institutions are at the forefront of innovation, developing new crop varieties and sustainable practices. On the policy side, the Ministry of Agriculture & Farmers' Welfare, NITI Aayog, and the Ministry of Finance are central, with state governments playing a critical role in implementation, as agriculture falls primarily under the State List (Entry 14 of the Seventh Schedule of the Constitution).

This matters immensely for India. Economically, increased investment can boost agricultural GDP growth, contributing to overall economic stability and reducing inflationary pressures on food items. Socially, it can significantly enhance farmer incomes, reduce rural distress, curb migration to urban areas, and create new job opportunities in allied sectors. Environmentally, climate-smart agriculture is essential for mitigating the adverse effects of climate change, conserving natural resources, and promoting long-term ecological balance. Furthermore, a technologically advanced and resilient agricultural sector enhances India's food security and strengthens its position in global agricultural trade.

The constitutional framework also supports such initiatives. While agriculture is a state subject, the Union government plays a crucial role in policy formulation, research, and financial support. Article 48 of the Directive Principles of State Policy (DPSP) mandates the state to organize agriculture and animal husbandry on modern and scientific lines. Policies like the National Policy for Farmers, 2007 (based on the M.S. Swaminathan Commission Report), and the government's aim to double farmer income by 2022 (though not fully achieved, it set a clear direction) have consistently emphasized the need for technological upgrades and sustainable practices. The Agriculture Infrastructure Fund (AIF) launched in 2020 also aims to provide financial support for post-harvest management infrastructure and community farming assets.

Looking ahead, if these demands are met, India could witness a transformation towards a more resilient, productive, and sustainable agricultural sector. The future implications include greater food security, increased farmer prosperity, and a stronger rural economy. However, challenges such as ensuring equitable access to technology for small and marginal farmers, addressing land fragmentation, effective implementation across diverse agro-climatic zones, and managing the digital divide will require sustained policy focus and collaborative efforts from all stakeholders. This push for tech and climate-smart infrastructure in agriculture is a strategic imperative for India's long-term growth and sustainable development.