New Delhi: The Union Budget 2025 has introduced a range of measures designed to stimulate rural development, building on signs of recovery in rural consumption since mid-2024. With a focus on the agricultural sector, the government aims to enhance farm incomes and drive higher spending in rural areas.
On February 1, Finance Minister Nirmala Sitharaman unveiled the Prime Minister Dhan-Dhaanya Krishi Yojana, a flagship program aimed at revitalizing agricultural productivity in underperforming regions. This initiative will target 100 districts characterized by low productivity, limited crop intensity, and poor credit performance, benefiting around 1.7 crore farmers. By integrating existing schemes and introducing tailored support, the program seeks to address productivity and income gaps in rural areas.
In addition to this initiative, the government has launched a six-year mission to achieve self-sufficiency in pulses, with an emphasis on tur and masoor varieties. This move is expected to improve agricultural growth, food security, and price stability.
Enhanced Kisan CrediEnt Card (KCC) limits: Boosting rural credit access
The budget also increases the short-term loan limit under the Kisan Credit Card (KCC) scheme from Rs 3 lakh to Rs 5 lakh, benefiting 7.7 crore farmers, fishermen, and dairy farmers. This increase is aimed at providing greater financial flexibility and improved credit access to rural stakeholders.
Rural prosperity has been a focal point of the economic agenda, supported by the Economic Survey presented on January 31. The survey revealed that social sector initiatives have helped reduce inequality and boost consumption. Notably, the average monthly per capita expenditure (MPCE) in rural areas rose to Rs 4,122 in 2023-24, showing substantial growth compared to Rs 6,996 in urban areas. The largest increases in MPCE were observed among the bottom 5–10% of the population in both rural and urban sectors.
Looking ahead, the economic survey projects continued rural growth, driven by a successful Kharif harvest and favorable prospects for the upcoming Rabi crop. This sustained growth is expected to fuel rural consumption and contribute significantly to the broader economy throughout the second half of the fiscal year.
Union Budget 2025 Announcements by FM Nirmala Sitharaman: India’s Union Budget 2025 focuses on rural development, with initiatives like the Prime Minister Dhan-Dhaanya Krishi Yojana, a pulse self-sufficiency mission, and increased Kisan Credit Card loan limits to Rs 5 lakh, aiming to boost farm incomes and rural economic growth. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
