Budget 2026 Boosts Agriculture & Rural Growth for Viksit Bharat

In the Union Budget 2026-27, the Government of India has announced a significant boost to agriculture and rural development as part of its ongoing efforts to achieve Viksit Bharat. Agriculture and Allied sectors remain one of the largest sources of employment within India’s rural villages.

There are over 665,000 villages and 268,000 Local Bodies throughout the country, and agriculture accounts for approximately 59% of employment and 40% of Gross Value Added(GVA) within Rural India.

With an emphasis on sustainable rural development, India’s overall focus will be to enhance agricultural productivity while diversifying the rural economy through Manufacturing and Services sectors.

The allocation for Agriculture and Allied sectors has been increased by 7%, from ₹1.52 trillion in FY26(RE) to ₹1.63 trillion in FY27(BE). The increased allocation will help drive improvements in Productivity, Competitiveness and Value Additions throughout the sector.

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The Rural Development Allocations have also increased significantly over the previous year, with an increase of 28%, from ₹2.13 trillion in FY26(RE) to ₹2.73 trillion in FY27(BE). This reinforces the Government’s commitment to Rural Growth.

Lastly, the Government’s Budget Priorities are aligned with three key objectives: Accelerated and Sustained Economic Growth, Achievements of People’s Aspirations and Realization of the vision of Sabka Sath, Sabka Vikas.These measures are designed to promote agricultural growth while supporting the diversification of rural economies into other sectors, ensuring that India’s rural areas thrive as part of the larger Viksit Bharat vision for a prosperous and developed nation.