On July 16, the Union Cabinet approved the Prime Minister Dhan-Dhannya Krishi Yojana (PMDDKY), a flagship initiative announced in the Union Budget earlier this year. Addressing reporters after the Cabinet meeting, Union Minister Ashwini Vaishnaw stated that the scheme merges 36 existing schemes from 11 ministries into one comprehensive programme. With an annual outlay of ₹24,000 crore, PMDDKY is set to run for six years, starting from FY 2025–26. The government expects the scheme to benefit 1.7 crore farmers across the country.
What is PMDDKY?
PMDDKY is essentially a district-level agricultural develop-ment programme, focused on 100 low-productivity districts identified across India. Its primary goals are to: u Improve agricultural productivity u Enhance irriga-tion infrastructure uProvide short-term and long-term credit support
Create rural prosperity and resilience in the agricultural economy
The scheme aims to tackle underemployment in the
agricultural sector by leveraging skilling, technological interventions, and targeted investments, all in collaboration with state governments.
Coverage and Criteria
According to the government press release, the 100 districts will be selected based on three key indicators:
The number of districts selected from each State or Union Territory will be proportional to their Net Cropped Area and operational land holdings.
In addition to enhancing productivity, the scheme emphasizes:
Credit facilitation through new and existing schemes
Special focus will be given to rural women, young farmers, and landless families. The scheme also envisions generating local employment opportunities and encouraging agripreneurship.
Why Agriculture Still Matters in India
Agriculture remains the backbone of the Indian economy. In 2023–24, the agriculture and allied sectors contributed 17.7% to the GDP and employed approximately 46.1% of the workforce. Despite its modest average growth rate of around 4%, agriculture plays a pivotal role in economic stability, food security, and rural livelihoods.
Even during the COVID-19 crisis, when many sectors faltered, agriculture managed to sustain its growth, although logistical and marketing challenges led to significant crop losses. A mere drought in a few districts can cause national inflation, highlighting agriculture’s systemic importance.
Moreover, the sector underpins many industries. India is the world’s largest exporter of rice, the top producer of milk (about 240 million tonnes), and a global leader in shrimp exports. These achievements underscore agriculture’s vital contribution beyond GDP numbers.
Missed Opportunities in Budget 2025–26
Agricultural economists Ritika Juneja and Ashok Gulati, writing in Economic and Political Weekly (April 19, 2025), observed that while PMDDKY marks progress, the Union Budget 2025–26 fell short of addressing long-standing structural issues in Indian agriculture. These include:
They acknowledged that initiatives like PMDDKY, the creation of a Makhana Board in Bihar, and new missions for pulses and cotton are steps forward. However, they cautioned that these measures lack the transformational vision required to revitalize the sector fundamentally.
“The initiatives are welcome but insufficient,” they wrote. “Without bold reforms and structural overhaul, Indian agriculture’s deep-rooted problems will remain unresolved.”
Conclusion
The PMDDKY holds the potential to make a meaningful difference–if implemented effectively. It may bring significant development to historically neglected agricultural districts and improve the livelihoods of millions. However, for Indian agriculture to truly thrive, a more comprehensive, reform-driven approach is essential–one that goes beyond short-term interventions and seeks to structurally modernize the sector.
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