NEW DELHI: Stressing that agriculture and the rural economy remain the backbone of India’s development, Prime Minister Narendra Modi on Friday said technology adoption, crop diversification and a pivot toward export-oriented production will be key to sustaining growth in the farm sector and strengthening rural incomes.
Addressing the third webinar of the Budget Webinar Series on agriculture and the rural economy, Modi said digital platforms such as e-NAM and the government’s digital agriculture infrastructure initiative AgriStack are transforming how farmers access markets and services. He also highlighted diversification programs such as the National Mission on Edible Oils and Pulses and the National Mission on Natural Farming, saying these initiatives are strengthening the sector.
The focus comes as agriculture and allied activities are projected to account for 15.6% of India’s national income at current prices in FY26 while employing 46.1% of the workforce, making the sector central to the country’s growth trajectory, food security and inclusive development.
According to the Economic Survey 2025-26, the agriculture and allied sector grew at an average annual rate of about 4.4% at constant prices over the past five years. Decadal growth of 4.45% during FY16-FY25, the highest compared with previous decades, was driven largely by livestock (7.1%) and fishing and aquaculture (8.8%), followed by crops at 3.5%.
Modi also flagged the potential of region-specific crops and stressed the need to expand export-oriented agriculture. The budget has placed emphasis on high-value products such as coconut in Kerala and Tamil Nadu, as well as cashew, cocoa and sandalwood, with the aim of improving productivity and quality to meet global demand.
The fisheries and animal husbandry sectors were also identified as key drivers of rural growth. With India already among the world’s largest producers of milk and fish, the government plans to bridge the gap between current output and the sector’s full potential.
In fisheries, the government plans scientific mapping of reservoirs and water bodies and cluster-based planning models, which could raise production significantly and potentially add about 2 million tonnes to the current output of around 400,000 tonnes.
In animal husbandry, the focus will be on improving breeding quality, strengthening disease prevention systems and promoting scientific livestock management. The government is also promoting the GOBAR-Dhan scheme to convert organic waste from villages into biogas and other energy sources, improving sanitation while supporting rural energy security.
The government is also expanding digital infrastructure for agriculture through AgriStack, recognizing that policy success depends on technology adoption at the grassroots level. About 90 million farmers have been issued digital farmer IDs so far, and digital surveys of nearly 300 million land parcels have been completed.
Modi also emphasized women-led development in rural areas. Building on the success of the “Lakhpati Didi” initiative, which has enabled three crore rural women to earn annual incomes of ₹1 lakh or more, the government aims to add another three crore women entrepreneurs by 2029.
The prime minister reiterated that agriculture remains a state subject, emphasizing that central initiatives must be complemented by effective state-level execution. “The goal is to ensure every penny of the budget serves its intended purpose as quickly as possible,” the prime minister said, underscoring that collaboration between agri-experts, industry players, and farmers is essential to scale these efforts.
