The Union budget announcements on enhancing productivity, competitive import substitution in pulses and oil seeds to phased MSP support for four years, establishing a seven lakh MT urea processing plant in Assam, boosting oilseed production through the National Mission for Edible Oilseeds, increasing the Kisan Credit Card (KCC) loan limit from Rs 3 lakh to Rs 5 lakh are just some of the steps being lauded by agriculture experts.
Padmanand V., partner and agriculture industry leader, Grant Thornton Bharat said, “There is a very apt focus on the agriculture sector. In the export context, the largest contributor i.e. fisheries will be promoted to supporting dedicated zones. KCC targets and limits have also been enhanced to address credit issues."
He also flagged the key measures to bolster Micro, Small, and Medium Enterprises (MSME) sector.
These include an enhanced credit guarantee scheme which will increase the limit from Rs 5 crore to Rs 10 crore. This will unlock an additional Rs 1.5 lakh crore in credit over the next five years. This initiative will facilitate easier access to credit for MSMEs, thereby supporting their growth and expansion.
ALSO READ: Green lobby finds cheer in Union Budget 2025 amid push for cleaner energy, transport
To encourage MSMEs to scale their operations, the investment and turnover thresholds for classification have been enhanced. The investment limit has been increased to 2.5 times, and the turnover limit has been doubled. This adjustment is expected to instill confidence among MSMEs, enabling them to grow and generate employment opportunities for the youth.
The government will focus on facilitating technological upgrades and improving access to capital for MSMEs. These efforts are designed to help MSMEs achieve higher efficiencies and remain competitive in the market.
On edible oils, Anubhav Agarwal, MD and CEO, BN Group, said the government’s commitment to boosting oilseed production through the National Mission for Edible Oilseeds would reduce import dependency and strengthen India’s edible oil ecosystem. This push will underscore the need for innovation, investment, and strategic expansion to reduce import dependence and enhance domestic production.
Agarwal has also lauded the launch of a six-year mission targeting self-reliance in pulses, with a special focus on toor and masoor. By empowering central agencies like NAFED and NCCF to procure these pulses directly from registered farmers, the government is providing a safety net that guarantees income stability for our cultivators.
Ranjith Mukundan, CEO & co-founder Stellapps Technologies, has lauded the government for revitalizing the rural economy through skilling, technology, and investment. “This presents an opportunity to enhance productivity, quality, and global competitiveness,” he said.
Kisan Credit Card loan limit from Rs 23,000 to Rs 85,000 for dairy farmers will enable farmers to invest in better cattle nutrition, advanced milking technology, and cold-chain infrastructure—key factors in improving milk yield and quality. This is a crucial enabler for modernizing dairy operations at the grassroots level.
Abhilash Sethi, investment director, Omnivore, is buoyed by the announcement that a framework has been created for transforming India's rural economy beyond pure agriculture. “This three-pronged approach opens opportunities in rural manufacturing, agri-adjacent startups, and supply chain innovation. As investors, we are particularly excited about the potential for building scalable enterprises that bridge the urban-rural divide and create sustainable livelihood opportunities across the value chain,” he said.
