Rebooting Indian agriculture: from loan waivers to direct income support & Women's Empowerment

Introduction: A Tale of Two Farmers

Imagine two farmers in rural India. The first, from a decade ago, is trapped in a cycle of debt, hoping for a sporadic farm loan waiver—a blunt instrument that often benefits the better-off and damages the nation’s credit culture. The second, a farmer of today, receives a predictable cash deposit directly into her bank account every four months. This isn’t just a handout; it’s capital she can use with autonomy—to buy seeds, pay for her child’s education, or invest in a new tool. This tale encapsulates one of the most significant pivots in Indian agricultural policy: the move from broad, inefficient loan waivers to targeted, empowering Direct Benefit Transfer (DBT).

This shift is not merely an economic recalibration. It intersects with another profound transformation: the increasing Feminization of Agriculture. As men migrate from rural to urban areas, women are becoming the primary cultivators and managers of farmland. This article delves into this dual transformation, analyzing the recent policy updates and exploring how India is striving to make its agricultural support system more efficient, inclusive, and gender-just.

The Great Policy Pivot: From Waivers to Direct Cash Support

For years, farm loan waivers were a popular tool for political mobilization, yet they were widely criticized by economists and institutions like the Reserve Bank of India (RBI). Waivers were seen as a temporary fix that failed to address systemic issues, encouraged willful defaults, and strained state finances. A late 2024 RBI report reiterated these concerns, flagging the rising subsidy burden on states and advocating for rationalizing such expenditures to boost capital investment.

Enter the era of DBT, epitomized by the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme. Launched in 2019, this scheme provides an income support of ₹6,000 per year in three equal installments to all landholding farmer families. As of mid-2025, over 9.7 crore farmers are set to receive the 20th installment of the scheme, with over ₹3.69 lakh crore already disbursed since its inception.

Analogy: Think of loan waivers as a ‘get out of jail free’ card in a game of Monopoly. It helps once, but it doesn’t improve your ability to earn money or buy property in the next round. Direct cash support, however, is like receiving a regular salary in the game, allowing you to plan, invest, and build assets strategically.

The success of this model rests on two foundational pillars suggested by the RBI:

1. Digitization of Land Records: Creating a clear, accessible, and transparent digital record of land ownership is crucial to identify genuine beneficiaries and prevent fraud. The Digital India Land Records Modernization Programme (DILRMP) has made remarkable strides. As of late 2024, nearly 95% of rural land records in the country have been digitized, a monumental step towards transparent land governance.
2. Aadhaar-Seeded Bank Accounts: The trinity of Jan Dhan, Aadhaar, and Mobile (JAM) ensures that the benefit reaches the intended person without leakages.

The Unseen Force: The Feminization of Indian Agriculture

While the policy framework for farm support has been evolving, a demographic shift has been reshaping the very fabric of Indian agriculture. With men migrating for non-farm jobs, women are increasingly taking on roles as cultivators, entrepreneurs, and primary agricultural laborers. This phenomenon is known as the Feminization of Agriculture.

However, this increased participation has not translated into empowerment. The data reveals a stark paradox:

• High Participation: As per the Periodic Labour Force Survey (PLFS) of 2024, women constitute over 42% of the agricultural workforce. In some states, they are the majority.
• Low Ownership: Despite their critical role, women hold ownership of less than 14% of agricultural land in India. This lack of ownership prevents them from being officially recognized as ‘farmers’, denying them access to credit, subsidies, and a voice in decision-making.

Statistic: Globally, if women had the same access to productive resources as men, they could increase yields on their farms by 20–30%, which could in turn reduce the number of hungry people in the world by 100–150 million.

Recognizing this gap, the government has mandated earmarking at least 30% of budget allocations in ongoing schemes for women beneficiaries and is promoting women’s Self-Help Groups (SHGs) as vehicles for credit and information delivery. A landmark recent initiative is the Namo Drone Didi Scheme (2024-2026), which aims to empower 15,000 women SHGs by providing them with agricultural drones. These SHGs can then offer drone-based services like spraying fertilizers and pesticides to local farmers, turning them into rural tech-entrepreneurs and aiming to provide an additional income of at least ₹1 lakh per year.

To ensure women farmers gain enhanced access to key resources, the government’s approach focuses on several key areas.

• Access to Land and Water
• Access to Credit
• Access to Technology
• Access to Training

Mnemonic Device: To remember the key areas of focus for empowering women farmers, use the phrase: “Women ACTT with Land & Water.”

Critical Policy Appraisal

Analytical Lens: UPSC Focus (Mains & Prelims)

• Conceptual Basis:

  • Constitutional Articles: The policy shift aligns with the Directive Principles of State Policy (DPSP), particularly Article 38 (promote the welfare of the people), Article 39 (right to an adequate means of livelihood), and Article 43 (secure a living wage). The focus on women farmers is underpinned by Articles 14 and 15 (Right to Equality) of the Fundamental Rights.
  • Key Legislation/Schemes: Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is the flagship scheme for direct income support. The Digital India Land Records Modernization Programme (DILRMP) is the key enabler. The Namo Drone Didi Scheme is a recent, targeted intervention for women’s empowerment.

• UPSC Integration: Connecting the Dots

  1. GS Paper II (Polity & Governance): This topic connects to federalism (agriculture as a state subject vs. central schemes), mechanisms of governance (DBT as a tool for transparency), and the role of SHGs in participatory development.
  2. GS Paper III (Economy): It is central to agricultural subsidies, fiscal policy, public finance, financial inclusion, and the application of technology in agriculture (agritech).
  3. GS Paper I (Indian Society): The discussion on the ‘Feminization of Agriculture’ directly relates to the role of women, rural-urban migration, and social empowerment.

• Future Impact & Policy Relevance: The long-term success of this policy pivot hinges on resolving the ‘last-mile’ challenges of land tenure for tenant farmers and ensuring women’s land rights are legally recognized and socially accepted. This shift towards direct, de-linked income support is more aligned with WTO’s ‘Green Box’ subsidies, giving India more fiscal space and policy flexibility. The future will likely see a greater integration of technology, with digitized land records becoming the foundation for a suite of services including credit, insurance, and personalized farm advisories.

• UPSC Prelims Practice Question (MCQ):

  With reference to the ‘Namo Drone Didi’ Scheme, consider the following statements:

  1. It is a centrally sponsored scheme aimed at providing agricultural drones to individual women farmers.
  2. The scheme provides for a 100% subsidy on the cost of the drone to eligible beneficiaries.
  3. The primary objective is to empower women’s Self-Help Groups (SHGs) to become rural entrepreneurs by offering drone services.

  Which of the statements given above is/are correct? (a) 1 and 2 only (b) 3 only (c) 2 and 3 only (d) 1, 2 and 3

  Answer: (b) 3 only Explanation: Statement 1 is incorrect; it is a Central Sector Scheme targeting women’s Self-Help Groups (SHGs), not individual farmers. Statement 2 is incorrect; the scheme provides a substantial subsidy of up to 80% (capped at ₹8 lakh), not 100%. Statement 3 is correct as the core idea is to enable SHGs to provide rental drone services to farmers, fostering entrepreneurship.

• UPSC Mains Practice Question (15 Marks):

  Critically analyze the policy shift from farm loan waivers to Direct Benefit Transfers (DBT) in Indian agriculture. How does this transition address the challenges posed by the ‘feminization of agriculture,’ and what structural reforms are still needed to ensure genuine empowerment of women farmers?

Mind Map Outline (Revision Structure)

• Reforming Indian Agricultural Support
  • The Policy Pivot: Waivers to Direct Support
    • Farm Loan Waivers (Historical Context)
      • Criticisms: Moral hazard, poor targeting, fiscal strain.
      • RBI’s Stance: Consistently against waivers.
    • Direct Benefit Transfer (DBT) - The New Paradigm
      • Flagship Scheme: PM-KISAN.
        • Key Features: ₹6,000/year, three installments.
        • Recent Status (2025): Over 9.7 crore beneficiaries, 20th installment release.
      • Enabling Pillars:
        • Digitization of Land Records (DILRMP).
        • JAM Trinity (Jan Dhan, Aadhaar, Mobile).
  • The Unseen Force: Feminization of Agriculture
    • Core Concept & Drivers
      • Definition: Increased female participation in agriculture.
      • Cause: Rural-to-urban male migration.
    • The Paradox of Participation vs. Empowerment
      • High Participation: >42% of the workforce.
      • Low Land Ownership: <14%.
      • Consequences: Lack of recognition, credit access, and decision-making power.
    • Government Interventions for Women Farmers
      • Budgetary Earmarking: At least 30% for women.
      • Focus on SHGs.
      • Recent Initiative: Namo Drone Didi Scheme (2024-2026)
        • Objective: Empowering 15,000 SHGs with drone technology.
        • Mechanism: Subsidized drones for rental services.
  • Policy Analysis & Way Forward
    • Critical Appraisal
      • Challenges: Exclusion of tenant farmers, digital divide, gender data gaps.
      • Opportunities: Financial inclusion, reduced corruption, technological empowerment.
    • UPSC Focus
      • Constitutional Basis: DPSP (Art 38, 39, 43), Fundamental Rights (Art 14, 15).
      • Syllabus Linkages: GS-I (Society), GS-II (Governance), GS-III (Economy).