Finance Minister Nirmala Sitharaman recently announced major initiatives in Budget 2026-27 to enhance rural livelihoods. The government plans to invest ₹1,62,671 crore in agriculture and associated sectors. This marks a 7.12% increase from last year’s revised estimate. As part of the ‘Sabka Sath, Sabka Vikas’ vision, the focus is on helping farmers increase their income by boosting productivity and promoting entrepreneurship, especially for small and marginal farmers.
One key change is the introduction of zero duty on fish caught by Indian vessels in exclusive economic zones (EEZ) and international waters. This means fish landed at foreign ports will be treated as exports. The government aims to protect this system against misuse while allowing Indian fishermen to maximize their economic potential.
Additionally, the plan includes the development of 500 reservoirs to enhance inland fisheries. This initiative will foster market connections through startups and women-led groups, stimulating local economies.
The livestock sector will also see improvements. Livestock accounts for about 16% of farm income, particularly benefiting poorer households. A proposed subsidy scheme aims to increase the number of veterinary professionals by over 20,000. This will support the growth of colleges, diagnostic labs, and breeding facilities in the private sector.
To boost agricultural diversity, the government is backing high-value crops such as coconut, sandalwood, and cocoa. Coconut production is vital, supporting around 30 million people, including 10 million farmers. India’s status as the largest coconut producer is a significant aspect of this focus. The coconut promotion scheme will replace old trees with new, more productive varieties.
For the hilly regions, new programs will help rejuvenate old orchards and promote high-density cultivation of walnuts, almonds, and pine nuts. The aim is to increase value through youth engagement and innovation.
Finally, the government is planning to reduce the Tax Collection at Source (TCS) for Tendu leaves to 2%. This is part of a broader strategy to optimize cash flow for farmers, ensuring that they face fewer financial pressures.
Overall, these measures promote economic growth in India’s rural areas, ensuring that those feeding the nation are supported effectively. According to the World Bank, increased investment in agriculture can uplift millions from poverty, making this budget an important step forward.
For more insights on agricultural policies, you might find this World Bank report helpful.
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India, North East, Fish Farmers
Producer Organisations, Indian, Tendu, Finance, Sabka Vikas', FOCUS ON COCONUT, Viksit
Bharat, ZERO
