Finance Minister Piyush Goyal in its Budget speech announced a direct income support Rs 6,000 per hectare which will be transferred directly into the farmers' bank accounts.
Farmers, who own upto 2 hectares (5 acres) of land, will be given a direct income support Rs 2,000 every four months a year, which equals to Rs 6,000.
"This will be funded directly by the government of India," Piyush Goyal said in the Parliament.
The scheme, which will be applicable from 1 December 2018 and will cost Rs 75,000 crore to the Modi government.
Piyush Goyal said that this scheme will benefit 12 crore farmers.
In a move that will benefit farmers across India, the FM also announced 2.5 per cent interest subventions for farmers struck by natural calamities. Adding to it, he announced 2 per cent interest subvention for animal husbandry and fisheries sector.