Union Budget 2026 Puts Strong Focus on Agriculture and Rural Growth

New Delhi, February 1: The Finance Minister, Nirmala Sitharaman, presented the Union Budget 2026 on Sunday, in which she explained the plans of the government for the year beginning April 1, 2026. Rural development and farming as the main priorities were brought up once again, and a list of ideas that would increase farm income, generate rural jobs, and support farmers appeared.

She also presented the Budget in Parliament and told the House that the government remained of the opinion that farmers and rural families should be able to enjoy real benefits of new programs. 

She stated that the reforms are focused on the creation of more jobs in agriculture, better crop growth, and an increase in household income. Everything is already assisting the growth of agriculture by approximately 7 percent and the reduction of rural poverty in many regions.

Sitharaman discussed that Indian agriculture has several challenges, such as low demand in the world market for its exports, seed and fertilizer supply problems, and gaps in supply chains. 

The increasing use of technology in farming, such as precision farming and AI, was also mentioned by her, even though the need for water, energy, and other important minerals continues to rise.

The budget provided more funds because farming is regarded as the main driver of growth. Funding for the Department of Agriculture and Farmers Welfare increased from ₹21,933.50 crore in 2013–14 to ₹1,27,290.16 crore in the 2025–26 Budget. According to the PLFS 2023–24 report, approximately 46.1 percent of the working population in India continues to be employed in agriculture and related work.

One major innovation of the Budget is a multilingual AI-based farming tool. The platform will help farmers with crop planning, weather forecasts, pest control, and market prices. It is designed to work in local languages to allow farmers to make better decisions.

The Budget also introduced special assistance for high-value crops such as coconut, sandalwood, and walnuts. One of the steps that the Centre will take to restore the sandalwood system, with the help of the states, includes conservation, planned planting, and improved market links, which will benefit farmers and forest communities. 

In the case of coconuts, a new promotion program will replace old and low-yielding trees in major growing states. Cashew and cocoa plans are also set to reduce imports, increase processing, and boost exports by 2030.

The government proposed a credit-linked subsidy plan and additional support for livestock farmer groups (FPOs) in the livestock sector. These actions are expected to make it easier for farmers to get bank loans, encourage group farming, and create more rural jobs.

Overall, the Union Budget 2026 makes farmers and rural areas a top priority in planning and clearly states measures to raise incomes, strengthen agriculture and related industries, and improve life in rural areas.