Budget 2024: Rs 1.52 lakh crore boost and digital infrastructure to revolutionize Indian agriculture, experts say

Introduction of digital public infrastructure to the agriculture sector, backed by a Rs 1.52 lakh crore boost for overall development and improving productivity has the potential to further lift the sector that provides livelihood to over 40% of the country’s population. Apart from opening up scope for research and development and higher efficiency the measures will help the country attain self-sufficiency in agri-products that still requires support, say industry stakeholders and experts.

According to Angshu Mallick, Managing Director & Chief Executive Officer of Adani Wilmar, the focus on agriculture sector and allocation of funds have the potential to revolutionise India's agriculture sector. “This strategic investment [of Rs 1.52 lakh crore, which is 20% higher than last year] will significantly enhance productivity, resilience, and sustainability. Key initiatives like innovative crop research, high-yielding varieties, and natural farming practices will directly benefit 1 crore farmers, supported by the establishment of bio-input centres,” he says.

"Digital Public Infrastructure in agriculture will provide more farmer data, enabling fintechs to access mainstream credit information. This will improve credit quality and increase financial inclusion for farmers,” says Vivek Iyer, Partner, Grant Thornton Bharat.

Mallick from Adani Wilmar - the largest edible oil producer in India sees the measures as a concerted effort by the government to lift the fortunes of the farmers, apart from helping India’s burgeoning agri-commodities market. “The focus on rural development, self-sufficiency in crucial crops, vegetable clusters, and improved digital infrastructure is particularly encouraging. These measures promise to optimise the agricultural value chain, boosting efficiency and competitiveness. The Digital Public Infrastructure (DPI) initiative, starting with a digital crop survey for Kharif in 400 districts, will stabilise rural economies and ensure 6 crore farmers and their lands are registered, facilitating the issuance of Jan Samarth-based Kisan Credit Cards,” he explains.

According to Chirag Jain, Partner, Grant Thornton Bharat, India’s average productivity is less compared to the world’s highest productivity for majority of crops e.g Paddy, Maize, Oilseeds etc. There is a clear need to focus on research & development which will enhance the overall production. 

Thus, “Focusing on natural farming is the need of the hour to support the natural soil ecosystem which is vulnerable because of high agri input usage. Vegetable clusters will help in easing out the food inflation pressures. Moreover, the new programme on oil seeds & pulses is a must and the government is spending more than 1.5 lakh crore on the import of oilseeds (which is more than 50% of the country’s demand),” he says.