India's Agri Sector Soars in 2025 with Record Output, GST Cuts; Eyes 2026 Reforms

• India projects record foodgrain output in 2025, surpassing 357.73 MT, despite US tariffs impacting farm exports. Kharif output estimated at 173.33 MT, with strong rabi sowing.
• Significant GST cuts (18% to 5%) on farm inputs like tractors, harvesters, and bio-pesticides from September 22, 2025, reduced costs by 7-13%, boosting farmers' purchasing power.
• US tariffs impacted USD 5-6 billion in agri exports, but India diversified markets, achieving 9% growth in non-US markets for April-September 2025.
• Government increased 2025-26 agri budget to Rs 1.37 lakh crore, extended PM Fasal Bima Yojana, raised DAP subsidy, and launched new schemes like Pradhan Mantri Dhan-Dhaanya Krishi Yojana.
• Draft Seeds Bill, 2025, and Pesticide Management Bill, 2020, are anticipated in 2026 to combat counterfeit inputs, while farmer protests for MSP and loan waivers persist.

Why It Matters: India's agriculture achieved record output in 2025, driven by GST cuts and policy support, despite challenges.