Union Cabinet Approves $1.68 Billion Boost for Agriculture and Allied Sectors

Team Finance Saathi

    03/Sep/2024

Key Points

1: Union Cabinet approves seven new schemes with a total investment of nearly $1.68 billion to enhance agriculture and allied sectors. 
2: The schemes focus on research, climate resilience, digitization in agriculture, and promoting the growth of livestock and horticulture. 
3: Significant funding allocated to the Digital Agriculture Mission, crop science, and strengthening agricultural education under ICAR.

The Union Cabinet has announced a significant boost to India's agriculture and allied sectors with the approval of seven new schemes, representing a combined investment of nearly US$ 1.68 billion (Rs. 14,000 crore). These schemes are designed to address a wide array of challenges and opportunities within the sector, ranging from research and education to climate resilience, natural resource management, and digitization. The comprehensive approach aims to equip Indian farmers with the tools and knowledge needed for climate-resilient agricultural practices while promoting the growth of key areas like livestock and horticulture.

One of the most prominent initiatives is the Digital Agriculture Mission, which has been allocated US$ 337 million (Rs. 2,817 crore). This mission underscores the government's commitment to integrating advanced technologies into the agricultural sector, with a strong emphasis on digitization. The mission will leverage artificial intelligence (AI), big data, and other cutting-edge technologies to transform how agricultural activities are managed, monitored, and optimized across the country. The integration of digital tools is expected to empower farmers with real-time data, enabling them to make informed decisions that can enhance productivity and sustainability.

Another key component of the Cabinet's announcement is the scheme for crop science, which has received US$ 476 million (Rs. 3,979 crore). This scheme is multifaceted, encompassing several critical areas such as plant genetic resource management, research on insects and microbes, and the development of resilient crop varieties. The goal is to drive innovation in crop science, ensuring that India remains at the forefront of agricultural research and can develop new varieties of crops that are better suited to the challenges posed by climate change.

In alignment with the New Education Policy 2020, the Cabinet has also approved an initiative to strengthen agricultural education and management under the Indian Council of Agricultural Research (ICAR). This initiative, backed by a funding of US$ 274 million (Rs. 2,291 crore), aims to modernize agri-research by incorporating advanced technologies such as AI and big data into the curriculum and research methodologies. The move is expected to enhance the quality of agricultural education in India, producing a new generation of scientists and professionals equipped to tackle the challenges of modern agriculture.

The Cabinet's approval also includes a program focused on sustainable livestock health, with a budget of US$ 204 million (Rs. 1,702 crore). This program aims to improve the health and productivity of India's livestock, which is a critical component of the rural economy. By addressing issues such as disease management, nutrition, and breeding practices, the program seeks to ensure the long-term sustainability and profitability of livestock farming in India.

Horticulture development is another area that has received significant attention, with a dedicated scheme funded at US$ 103 million (Rs. 860 crore). This scheme aims to promote the growth of horticultural crops, which are not only important for food security but also for providing nutritional diversity. The focus will be on increasing the production and quality of fruits, vegetables, flowers, and other horticultural products through the adoption of best practices and modern technologies.

The Krishi Vigyan Kendras (KVKs), which are instrumental in disseminating agricultural knowledge and technologies to farmers, will also be strengthened under a new scheme. The Cabinet has allocated US$ 144 million (Rs. 1,202 crore) to this initiative, which will benefit the extensive network of over 700 KVKs across India. The funds will be used to enhance the infrastructure, training programs, and outreach activities of these centers, ensuring that they continue to serve as vital resources for farmers.

Lastly, the Cabinet has approved a plan for Natural Resource Management, with a budget of US$ 133 million (Rs. 1,115 crore). This scheme focuses on the sustainable use and management of natural resources, such as soil, water, and biodiversity, which are essential for long-term agricultural productivity. The initiative will support practices that conserve these resources while enhancing agricultural output, thereby contributing to the overall sustainability of the sector.

These initiatives collectively represent a transformative step forward for Indian agriculture. By addressing key challenges and leveraging modern technologies, the government aims to build a more resilient, productive, and sustainable agricultural sector that can meet the needs of a growing population and an increasingly uncertain climate.

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