New Delhi | India must significantly increase investment in agricultural research, innovation, and extension services to sustain long-term agricultural growth, improve productivity, and strengthen national food security, according to recent findings by the Indian Council of Agricultural Research (ICAR) and leading agricultural policy experts.
The latest estimates released by ICAR indicate that agricultural research and technology contributed nearly one-third of the increase in the value of India’s agricultural output between 2024 and 2025, highlighting the critical role of scientific innovation in transforming Indian agriculture.
Experts believe that while subsidies remain important for supporting farmers, long-term productivity gains will increasingly depend on sustained investments in research, climate-resilient technologies, and efficient knowledge transfer from laboratories to farms.
Agricultural Research Driving Productivity Growth
According to ICAR, advances in agricultural science have played a major role in boosting production through:
- Improved seed varieties
- Mechanisation
- Climate-resilient farming technologies
- Enhanced germplasm
- Agricultural extension services
- Natural resource management
- Improved soil and water conservation practices
Although ICAR notes that its estimates are indicative rather than precise econometric calculations, the findings reinforce the importance of research as a key driver of agricultural productivity and rural economic growth.
Challenges Facing Indian Agriculture
India’s agriculture sector is confronting multiple structural and environmental challenges that cannot be addressed through subsidies alone.
Major concerns include:
- Shrinking landholdings
- Declining soil fertility
- Groundwater depletion
- Increasing pest and disease outbreaks
- Climate change and extreme weather events
- Rising pressure on natural resources
Experts emphasize that future agricultural growth will depend less on expanding cultivated land and more on producing higher-value output using fewer resources through scientific innovation and sustainable farming practices.
Focus on Climate-Resilient Agriculture
Agricultural researchers stress that future investments should prioritize technologies capable of improving both productivity and sustainability.
Key areas include:
- Climate-resilient crop varieties
- Efficient soil and water management
- Reduced carbon, nitrogen, and energy footprints
- Precision agriculture
- Diversification into horticulture
- Livestock development
- Fisheries and aquaculture
- Sustainable resource management
Such innovations are expected to strengthen India’s resilience against climate-related risks while ensuring long-term food security.
ICAR Highlights Major Achievements
The ICAR report showcases significant progress achieved through research and technological advancement during 2024–2025.
Key achievements include:
- Crop production increased by 19 million tonnes.
- Horticulture production rose by 7 million tonnes.
- Fisheries output expanded by 1.4 million tonnes.
- These improvements generated an estimated ₹40,000 crore in additional economic value.
In addition, ICAR released 386 improved crop varieties during 2025, demonstrating continued innovation in agricultural science.
Among these:
- 94% are climate-resilient varieties.
- 29 are biofortified varieties designed to improve nutritional quality while enhancing productivity.
These developments are expected to support sustainable agricultural growth and improve farmers’ incomes.
High Economic Returns on Research Investment
A recent working paper by the National Institute of Agricultural Economics and Policy Research (NIAP) highlights the exceptional economic value of agricultural research.
The study estimates that:
- Every ₹1 invested in agricultural research generates returns of approximately ₹13.85.
- Every ₹1 invested in agricultural extension services yields returns of about ₹7.40.
These figures rank agricultural research among the highest-return public investments in India’s economy.
Agricultural extension services play a crucial role by transferring scientific innovations from research institutions to farmers’ fields, ensuring that new technologies are effectively adopted.
Research Funding Remains Limited
Despite the high economic returns, experts note that India’s investment in agricultural research remains relatively modest.
Government expenditure on agricultural research and education has increased from:
- ₹4,836 crore in 2014–15
- to ₹9,266 crore in 2026–27
While the increase reflects greater public support, analysts argue that the allocation remains insufficient for a sector that supports the livelihoods of millions and ensures national food security.
Furthermore, India’s overall research and development (R&D) expenditure remains at only 0.6–0.7% of Gross Domestic Product (GDP), significantly lower than investment levels in many advanced economies.
Subsidies Continue to Dominate Agricultural Spending
According to a study by the Indian Council for Research on International Economic Relations (ICRIER), the majority of India’s agricultural budget continues to be directed toward subsidies and welfare programmes.
The study indicates that:
- Approximately 73% of agricultural expenditure is devoted to subsidies and welfare schemes.
- The combined food, fertilizer, and fuel subsidy bill for 2026–27 is projected to exceed ₹4.1 trillion.
- This amount is more than 44 times the allocation for agricultural research and education.
While subsidies remain essential for supporting farm incomes and ensuring food affordability, experts point out that they primarily provide short-term consumption support, whereas research creates long-term productivity gains.
Need for a Balanced Investment Strategy
Agricultural economists recommend a more balanced approach that combines income support with greater investment in innovation.
Priority areas include:
- Higher and more predictable funding for agricultural research
- Strengthening agricultural extension systems
- Accelerating technology transfer to farmers
- Encouraging collaboration between public research institutions and the private sector
- Promoting innovation in sustainable agriculture
- Supporting digital and precision farming technologies
Such investments are expected to improve productivity, increase resilience, and enhance the competitiveness of Indian agriculture.
Conclusion
The latest findings from ICAR underscore the vital contribution of agricultural research and technological innovation to India’s agricultural growth. With research accounting for a substantial share of recent increases in agricultural output and generating exceptionally high economic returns, experts argue that expanding investment in research, education, and extension services is essential for the future of Indian agriculture.
As the sector faces growing challenges from climate change, resource depletion, shrinking landholdings, and rising demand for food, sustained scientific innovation will be critical to improving productivity, ensuring food security, and supporting the livelihoods of millions of farmers. A balanced policy approach that complements farmer support schemes with increased investment in research and technology is expected to deliver lasting benefits for India’s agricultural economy.
