Over the 77 years of independent India, the agricultural sector has been a cornerstone of the economy, driving growth and consumption. The current budget reflects a strong commitment to agriculture, prioritizing climate-resilient public spending to enhance efficiency and effectiveness.
Women play a pivotal role in Indian agriculture, cultivating over 40% of crops and managing more than 70% of livestock. Their contributions underscore the importance of gender inclusivity in agricultural policies and economic development.
India’s vulnerability to extreme heatwaves, projected to become more frequent and severe, poses significant challenges for farmers. Rising temperatures and altered rainfall patterns threaten agricultural production, impacting food access and affordability. In the Indo-Gangetic plains, a critical wheat-producing region contributing 14-15% of the world’s supply, projections indicate a 50% reduction in wheat production due to heat stress by 2050. The quality of staple crops like rice and wheat is also expected to decline, affecting their protein and micronutrient content.
The agricultural system is largely dependent on smallholder farmers, who operate on plots smaller than 1.5 hectares and rely heavily on rain-fed irrigation. To build resilient agricultural systems, significant investments in innovations are essential to help these small-scale producers cope with droughts, floods, pests, and diseases.
The budget’s focus on accelerating research and development for climate-resilient crop varieties and boosting oilseed production is promising. Aggregating through producer organizations and cooperatives will enhance economies of scale for farmers. The Finance Minister’s recognition of India’s growing energy demand highlights the importance of transitioning to a low-carbon economy. Investments in decarbonization, particularly in energy-intensive sectors like ethylene production, are crucial for achieving the country’s Net Zero 2050 goal. Key strategies include reducing plastic demand, exploring alternative energy sources, and adopting low-carbon industrial processes to fulfill the vision of Vikshit Bharat.
