Agricultural Subsidy Schemes in India

India’s agricultural subsidy landscape has evolved to address socio-economic challenges. Subsidies, especially in food grains and fertilisers, remain critical for supporting farmers, but their share in GDP has declined due to global and domestic economic factors. Key schemes like the Public Distribution System (PDS), Pradhan Mantri Krishi Sinchai Yojana (PMKSY), and Sub-Missions on Seeds (SMSP) and Mechanisation (SMAM) enhance productivity and equity. However, subsidy reductions risk impacting farmer welfare and productivity. Nutrient-based fertiliser subsidies and agricultural marketing infrastructure schemes address specific needs. Periodic reviews are essential to balance fiscal responsibility with the socio-economic benefits of these subsidies.