Union Budget 2026: ₹1.63 lakh crore allocation reaffirms farming as the backbone of India's growth

New Delhi: The Union Budget 2026-27 placed a strong emphasis on high-value agriculture, allied sectors and technology-led farming, with Finance Minister Nirmala Sitharaman proposing targeted interventions to boost farmer incomes, create rural employment and modernise agricultural practices. She announced an allocation of ₹1,62,671 crore for the agriculture sector in the Union Budget on Sunday, February 1 , rising 7% from 2025-26's revised estimate of ₹1,51,853 outlining the continued focus on farmer welfare, food security and rural livelihoods.

The ministry’s outlay increased from about ₹21,933.50 crore in 2013-14 to approximately ₹1,51,853 crore in the 2025-26 Budget Estimates, underscoring the rising fiscal support to the sector.

Push for high-value crops and diversification


To diversify farm output and enhance incomes, the government will support high-value crops such as coconut, sandalwood, cocoa and cashew in coastal regions, agarwood in the North East, and nuts including walnuts, almonds and pine nuts. Dedicated programmes will focus on rejuvenating old orchards, expanding high-density cultivation and promoting value addition by engaging rural youth.

India, the world’s largest producer of coconuts, will see a new coconut promotion scheme aimed at boosting productivity through measures such as replacing non-productive trees with improved varieties in major coconut-growing states. Around 30 million people, including nearly 10 million farmers, depend on coconut cultivation for their livelihoods.

The Budget also proposes a dedicated programme for Indian cashew and cocoa to make the country self-reliant in raw material production and processing, with the goal of transforming Indian cashew and cocoa into premium global brands by 2030.

Sandalwood cultivation will receive focused support through partnerships with state governments to promote scientific farming and post-harvest processing, aimed at restoring the traditional Indian sandalwood ecosystem.

Fisheries and animal husbandry get a boost

In fisheries, the government proposed initiatives for the integrated development of 500 reservoirs and other water bodies to strengthen the fisheries value chain. These efforts will focus on improving market linkages and supporting startups, women-led groups and fish farmer producer organisations, particularly in coastal areas.

For animal husbandry, a credit-linked subsidy programme will be introduced to promote entrepreneurship, modernise livestock enterprises and scale up integrated value chains across dairy, poultry and livestock sectors. The government will also encourage the formation of livestock farmer producer organisations to create quality employment in rural and peri-urban areas.

AI-powered Bharat Vistar support for farmers

In a major push for tech-driven agriculture, Finance Minister Nirmala Sitharaman announced the launch of 'Bharat Vistar' in the Union Budget 2026-27—a multilingual AI tool set to integrate AgriStack portals and ICAR's agricultural practices with advanced AI systems, transforming how farmers access resources and make decisions.

The platform will boost farm productivity, deliver customised advisory support to reduce risks, and enable better on-ground choices for millions of farmers, aligning with the government's vision for AI integration in farming.

With a strong focus on diversification, value addition and digital tools, Budget 2026 signals a shift towards making agriculture more remunerative, resilient and future-ready, while expanding employment opportunities across allied rural sectors.