The year 2025 marked a pivotal shift for India’s agricultural landscape, showcasing the results of sustained policy initiatives, public investment, and reforms over the past decade. The agricultural sector and its allied activities contributed nearly 16% to India’s GDP in FY 2024-25, supporting the livelihoods of over 46% of the population. This transformation highlighted that Indian agriculture has evolved beyond mere subsistence, moving towards greater productivity, diversification, sustainability, and income security.
India achieved a historic foodgrain production of 357.73 million tonnes in 2024-25, reflecting an 8% increase from the previous year and an impressive rise of over 106 million tonnes since 2015-16. This achievement was propelled by strong performances in major crops. Rice production reached 150.18 million tonnes, while wheat output was recorded at 117.95 million tonnes. Other crops such as pulses, oilseeds, maize, and millets also experienced significant growth, aided by targeted crop missions and improved seed availability.
The Minimum Support Price (MSP) policy remained crucial for ensuring farmer income stability in 2025. It provided a minimum return of 50% over the cost of production for all mandated crops, reinforcing production incentives. Since 2014, MSP procurement has facilitated unprecedented income support, with paddy payments surpassing ₹14.16 lakh crore and wheat procurement over ₹6.04 lakh crore.
Direct benefit transfers through the PM-Kisan Samman Nidhi program continued to be essential for farmers. By August 2025, around ₹3.90 lakh crore had been disbursed over 20 installments, aiding over 11 crore farmers. The Kisan Credit Card programme significantly enhanced access to institutional credit, with cumulative agricultural credit exceeding ₹10 lakh crore, benefiting small and marginal farmers.
Crop risk protection under the Pradhan Mantri Fasal Bima Yojana strengthened farmer confidence, with claims worth ₹1.83 lakh crore paid since 2016. Irrigation coverage expanded under the Pradhan Mantri Krishi Sinchai Yojana, improving water-use efficiency and enabling farmers to diversify into high-value crops.
Investment in agricultural infrastructure was central to governance in 2025. The Agriculture Infrastructure Fund sanctioned over one lakh projects, enhancing storage, warehousing, and processing units. This development aimed to reduce post-harvest losses and improve rural employment opportunities.
Market transparency and price discovery were enhanced through the e-NAM platform. The establishment of 10,000 Farmer Producer Organisations (FPOs) emerged as a significant reform, improving collective procurement and marketing strategies, especially for smallholders and women farmers.
Allied activities played a vital role in income diversification. India maintained its status as the world’s largest milk producer, with production reaching 239.30 million tonnes. Fisheries production hit 195 lakh tonnes, while horticulture output continued to rise, contributing significantly to the economy.
Sustainability was a core focus of agricultural policy, with natural and organic farming initiatives gaining traction. The ethanol blending programme achieved 19.05% blending by July 2025, showcasing efforts to reduce crude oil imports while providing additional income to sugarcane farmers.
Q1. What is the significance of MSP in Indian agriculture?
Answer: The Minimum Support Price (MSP) is crucial for ensuring income stability for farmers by providing a guaranteed minimum return over production costs, fostering confidence in agricultural planning.
Q2. How has India's food production changed in recent years?
Answer: India achieved record foodgrain production of 357.73 million tonnes in 2024-25, reflecting significant growth and improved agricultural practices since 2015-16.
Q3. What role does the PM-Kisan program play for farmers?
Answer: The PM-Kisan program provides direct income support to farmers, with nearly ₹3.90 lakh crore disbursed by August 2025, benefiting over 11 crore farmers across the country.
Q4. How has irrigation coverage improved in India?
Answer: Irrigation coverage under the Pradhan Mantri Krishi Sinchai Yojana expanded significantly, promoting better water-use efficiency and enabling diversification into high-value crops.
Q5. What advancements have been made in agricultural infrastructure?
Answer: Investment in agricultural infrastructure has strengthened storage, warehousing, and processing facilities, reducing post-harvest losses and enhancing rural employment opportunities.
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