Shrinking share

Budget's lower agriculture outlays in both absolute and real terms are puzzling

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Budget 2025 prioritised agriculture as the first engine of growth; the expectation clearly was that outlays would boost productivity and resilience in this sector that contributes 18% of the country's gross value added (GVA) and supports less than half of the population. The nation's food security depends on this sector, which also supports overall economic growth. Since the ruling National Democratic Alliance regime first came to power in 2014, agricultural growth has averaged 3.7% per annum, while growth in overall GVA was 5.8%. This far-from-buoyant growth performance has been strongly influenced by the southwest monsoon, which has become highly wayward due to climate change. If growth is raised to 5% and the sector's share is 20% of overall GVA, agriculture will contribute 1% growth to GVA, according to the latest Economic Survey. The policy imperative must accordingly be to prioritise investments in infrastructure like irrigation and water management facilities, and develop heat-resistant crops by investing more in research and development (R&D) for a more climate-resi