The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, launched in 2019, represents a significant effort by the Indian government to address the financial challenges faced by small and marginal farmers. By providing direct income support of ₹6,000 annually, the scheme aims to alleviate the economic burdens of farmers and stabilize the agrarian economy. However, its efficacy in transforming Indian agriculture remains debatable. Insightfultake evaluates the scope, financial adequacy, and impact of PM-KISAN, drawing comparisons with global agricultural support systems. It also highlights the persistent challenges in Indian agriculture and proposes a holistic approach to ensure sustainable growth. Using data from government reports, scholarly articles, and global case studies, this article argues that while PM-KISAN is a step in the right direction, its current structure and scale are insufficient to address the systemic issues plaguing Indian agriculture.
Introduction
Agriculture remains the backbone of India's economy, supporting approximately 60% of rural households and contributing significantly to the nation's GDP. Despite its critical role, the sector faces numerous challenges, including fragmented landholdings, rising input costs, and dependence on monsoon rains. In 2019, the Indian government introduced the PM-KISAN scheme to provide direct financial assistance to small and marginal farmers, aiming to stabilize their incomes and improve agricultural productivity. As of February 2025, the scheme has disbursed over ₹3.46 lakh crore to more than 9.8 crore farmers. However, questions remain about its adequacy and effectiveness in addressing the structural issues of Indian agriculture. Insightfultake critically evaluates the PM-KISAN scheme, its financial impact, and its potential to bring about transformative change.
Scope and Reach of PM-KISAN
The PM-KISAN scheme provides eligible farmers with ₹6,000 annually, distributed in three equal installments of ₹2,000. Since its inception, the program has reached over 9.8 crore farmers, disbursing ₹22,000 crore in its 19th installment alone in February, 2025. While the scheme's reach is substantial, it excludes a significant portion of the farming population due to factors such as inadequate land ownership records, tenancy arrangements, and low awareness levels. This exclusion raises concerns about the scheme's inclusivity and its ability to address the needs of the most vulnerable farmers.
Financial Adequacy of the Assistance
The financial assistance provided under PM-KISAN, while commendable, is modest in the context of rising agricultural input costs. The ₹6,000 annual support translates to just ₹500 per month, which is insufficient to cover the escalating costs of seeds, fertilizers, and equipment. For instance, the minimum support price (MSP) for wheat has risen to ₹2,425 per quintal, reflecting the increasing financial burden on farmers in 2025. This disparity highlights the need for a more robust support mechanism that aligns with the actual costs of agricultural production.
Comparative Analysis with Global Agricultural Support Systems
When compared to agricultural support systems in developed nations, the limitations of PM-KISAN become evident. In the United States and the European Union, farmers benefit from substantial subsidies, advanced technologies, and comprehensive insurance schemes. For example, the European Union's Common Agricultural Policy (CAP) allocates a significant portion of its budget to support farmers, though it has been criticized for favoring large landowners and contributing to environmental degradation. In contrast, India's per-farmer support under PM-KISAN is considerably lower, reflecting the challenges of a vast agrarian base and budgetary constraints. This disparity underscores the need for India to adopt a more comprehensive approach to agricultural support.
Challenges in Indian Agriculture
Despite the financial assistance provided by PM-KISAN, Indian agriculture continues to face systemic challenges. Fragmented landholdings, inadequate infrastructure, and dependence on monsoon rains remain significant barriers to productivity. Additionally, the lack of access to modern technology and sustainable farming practices further exacerbates the sector's vulnerabilities. While initiatives such as the integration of artificial intelligence in agriculture show promise, their reach remains limited (World Economic Forum, 2025). Addressing these challenges requires a multi-faceted approach that combines financial support with infrastructural development and policy reforms.
To achieve transformative change in Indian agriculture, the government must adopt a holistic strategy that goes beyond direct income support. Key recommendations include:
- Enhancing Financial Support: Increasing the quantum of assistance under PM-KISAN to align with rising input costs.
- Infrastructural Development: Investing in irrigation facilities, storage infrastructure, and transportation networks to reduce post-harvest losses.
- Technological Integration: Promoting the adoption of modern technologies such as precision farming, AI, and IoT to improve productivity and sustainability.
- Policy Reforms: Addressing issues related to land ownership, tenancy, and access to credit to ensure inclusivity.
- Global Best Practices: Drawing lessons from successful agricultural support systems in developed nations while adapting them to India's unique context.
Conclusion
The PM-KISAN scheme represents a significant effort by the Indian government to support small and marginal farmers. However, its current structure and scale are insufficient to address the systemic challenges facing Indian agriculture. While the scheme provides essential financial assistance, a more comprehensive approach that combines income support with infrastructural development, technological integration, and policy reforms is necessary to ensure the sustainability of India's agrarian economy. By adopting a holistic strategy, India can transform its agricultural sector and improve the livelihoods of millions of farmers.