As Union Budget nears, farmers and exporters await major announcements. Hike in PM-KISAN aid, higher agri allocation, export incentives, MSME loans and modern farming push likely on Feb 1.
As Finance Minister Nirmala Sitharaman prepares to present the Union Budget on February 1, expectations are running high across key sectors of the economy, particularly agriculture and exports. With the government reiterating its vision of ‘Viksit Bharat’, experts believe this year’s budget could bring several major announcements aimed at strengthening rural incomes, boosting exports and modernising infrastructure.
PM-KISAN Hike on the Cards?
One of the most closely watched announcements is expected around the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme. At present, farmers receive ₹6,000 annually in three instalments. However, reports suggest the government may increase this amount, offering much-needed relief to farmers amid rising input costs.
In a significant move, the annual assistance for women farmers is expected to be raised from ₹6,000 to nearly ₹10,000, a step that could help strengthen household incomes and provide a direct boost to the rural economy.
Higher Allocation for Agriculture Likely
The agricultural sector, which received ₹1.25 lakh crore in the previous budget, is likely to see a higher allocation this year. Officials and experts expect additional funds to be channelled into modern farming techniques, technical assistance, and infrastructure development, aimed at improving productivity and reducing post-harvest losses.
There is also strong expectation of fresh subsidies for cold storage chains and food processing units, which could help farmers store crops safely after harvest and minimise wastage — a long-standing challenge in India’s agricultural supply chain.
Push for Modern Farming and Drones
The government is also expected to step up its push towards modernising agriculture, with major announcements likely around the use of drones in farming. From crop monitoring to precision spraying, drone technology is increasingly being seen as a game-changer, especially for improving efficiency and reducing costs.
Export Sector Looks for Policy Support
Alongside agriculture, the export sector is keenly watching the budget for policy and financial support. Experts believe that while free trade agreements have opened up new opportunities, exports will require stronger backing to fully realise their potential.
Announcements related to an Export Linked Incentive, technical support, and system upgrades are expected. These measures are seen as crucial to helping Indian exporters remain competitive in global markets.
MSMEs, Loans and Logistics Boost
Small and medium enterprises, which play a vital role in exports, may also benefit from the budget. Schemes offering low-interest loans to MSMEs are likely to be announced, aimed at strengthening production capacity and encouraging export-oriented growth.
On the infrastructure front, the government may unveil plans for new railway corridors under the PM Gati Shakti scheme to reduce freight costs. In addition, steps to develop ports and logistics infrastructure are expected, further supporting the export ecosystem.
Budget with a ‘Viksit Bharat’ Focus
With the central government pushing its vision of a developed India, economists believe the upcoming budget will focus on long-term growth drivers, combining welfare measures with investment in infrastructure, technology and exports.
As Parliament gears up for Budget Day, all eyes will be on February 1 to see how far the government goes in meeting the high expectations of farmers, exporters and industry alike.