Are you interested in Joining program?

Home / Economics / India’s Agri Boom: Key Reforms Powering Farm Growth

India’s Agri Boom: Key Reforms Powering Farm Growth

Why in NEWS

At the 16th Agriculture Leadership Conclave, the Union Minister highlighted major reforms driving agricultural growth—ranging from soil health and credit access to digital tech and global trade.

Key Concepts & Definitions

TermDefinition
MSPMinimum Support Price – government-guaranteed price to protect farmers from market volatility
Soil Health Card (SHC)A card issued to farmers with recommendations on nutrient management for their land
Kisan Credit Card (KCC)Scheme offering short-term formal credit to farmers at subsidized interest rates
e-NAMElectronic National Agriculture Market – online trading platform for agri-commodities
FPOFarmer Producer Organisation – a collective of farmers to enhance bargaining power and market access

Initiatives Fueling Agricultural Growth

InitiativeDescription
MSP HikesUp to 98% increase for pulses and oilseeds; improves price assurance
Soil Health Cards25+ crore distributed to guide fertilizer use and increase yield
Kisan Credit Card (KCC)7.75 crore active accounts; Rs 9.81 lakh crore disbursed; now includes fisheries & animal husbandry
PM-KISAN₹6,000 annual income support to landholding farmers; 11.8 crore beneficiaries via DBT
e-NAM Integration1,400 mandis linked for transparent and unified online trading
Fertiliser SubsidiesRs 1.67 lakh crore allocated for FY 2025–26 (40% of India’s total subsidy spend)
Free Trade Agreements (FTAs)Access to new global markets through FTAs with UAE, Australia, UK, EFTA
Digital AgricultureDigital Agri Mission 2024 launched with AgriStack, AI, satellite tech, and crop analytics
Support to FPOs10,000 FPOs target; 30 lakh farmers (40% women) covered with credit, training, and infrastructure
Agri-Exports PushFY24 exports at Rs 4.5 lakh crore with target of Rs 20 lakh crore
Infrastructure & Irrigation96.97 lakh ha under micro-irrigation (PDMC); Agri Infra Fund extended for cold chains, warehouses

Outcomes of Agricultural Reforms

MetricProgress Achieved
Sector Growth (FY17–FY23)5% annual growth in agriculture & allied sectors
GVA ShareIncreased from 24.38% (2014–15) to 30.23% (2022–23)
Farmer IncomesRose at 5.23% annually over the past 10 years
Agri Exports (FY24)USD 46.44 billion, 11.7% of total Indian exports
Processed Food ShareRose from 14.9% (FY18) to 23.4% (FY24)

In a Nutshell

Mnemonic: FARM GROWTH

  • Fertiliser support
  • Access to credit (KCC)
  • Remunerative MSP
  • Market linkage via e-NAM
  • Global FTAs
  • Rural infra & irrigation
  • Organised FPOs
  • Welfare via PM-KISAN
  • Tech adoption (Digital Ag)
  • Healthy soil via SHCs

Prelims Practice Questions

  1. Which of the following schemes provides income support to farmers through Direct Benefit Transfer?
    A. PM-KUSUM
    B. PM-KISAN
    C. e-NAM
    D. PDMC
  2. What is the purpose of Soil Health Cards (SHCs)?
    A. Offer insurance to farmers
    B. Recommend suitable fertilizers based on soil condition
    C. Provide price support
    D. Enable access to credit
  3. Which of the following is not a component of the Digital Agriculture Mission 2024?
    A. AgriStack
    B. Weather forecasting
    C. Free crop insurance
    D. AI and geospatial technologies

Mains Practice Questions

  1. India’s agriculture sector is transforming with a blend of welfare and innovation.
    Discuss the role of recent government initiatives in this transformation. (UPSC GS3)
  2. What are the major digital interventions in India’s agriculture policy?
    Analyze their impact on productivity, market access, and sustainability.

Prelims Answer Key with Explanation

Q. NoAnswerExplanation
1BPM-KISAN provides ₹6,000 per year through DBT
2BSHCs give tailored fertilizer advice based on soil health
3CFree crop insurance is not part of Digital Agriculture Mission 2024

Seed IAS Foundation

Featured courses

Seed IAS Foundation

The Daily
Seed News Portal

100% free for school & college students

Each news starts with UPSC relevance

Key terms explained in a simple table

News in plain, easy-to-understand language

Practice Corner:

• 3 Prelims MCQs
• 2 Mains questions
• Daily online quiz at 8 PM

Get SEED NEWS DAILY
Now on WhatsApp
absolutely FREE!

Read more newsletters