As Budget 2026 approaches, experts from agriculture, climate policy and real estate sectors are urging the government not to limit itself to minor reforms, but focus on long-term consolidation, sustainable growth and effective market mechanisms. He believes that now only policy clarity, targeted spending and long-term strategies can ensure economic stability and sustainable growth, and not just big figures.
Climate risks on agriculture sector
According to experts, even an increase of just 1 degree Celsius in temperature can reduce crop yields by 4.5–9%, causing a loss of up to 1.5% in annual GDP. To deal with this crisis, Sharma stressed the need for continued funding for the National Innovation in Climate Resilient Agriculture project. The project promotes climate-resilient technologies and adaptation at the local level.
He also said that there is a need to further strengthen irrigation capacity under Pradhan Mantri Kisan Irrigation Schemes like ‘Per Drop More Crop’ and ‘Har Khet Ko Paani’. Although micro-irrigation coverage is increasing, funding is still not sufficient.
Fertilizer and price support
Experts say that there is a need to pay more attention to balanced use and promotion of fertilizers. Urea consumption in India is much higher than the global average and regional differences are also considerable. Schemes like PM-PRANAM and Market Development Assistance promote balanced and organic inputs, but their share in the fertilizer budget for the financial year is only 0.1%. Therefore, it is necessary to increase budget allocation to ensure sustainability without affecting production.
Crop Income and Price Support
The low utilization of price support under the PM-AASHA scheme is also a matter of concern. Sharma suggested increasing budget allocations, expediting DBT payments and strengthening incentives at the state level. Experts say that it is important to maintain investment in infrastructure and emphasis on policy stability. According to him, expansion of the credit linked subsidy scheme and incentives for green housing will boost urban demand and sustainable growth.
Agricultural Finance and Storage
The expert underlined the potential of e-negotiable warehouse receipts (e-NWRs) and said that it can help in increasing the liquidity of farmers. He said that there is a need to invest more in micro-warehouses, cold storage and farmer awareness, so that farmers are not forced to sell their products.
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