Indian Economy News

Cabinet approves continuation of the PM-KISAN Scheme from 2026-27 to 2030-31 with a Financial Outlay of US$ 33 billion

The Union Cabinet, chaired by Prime Minister Mr. Narendra Modi, has approved the continuation of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme from 2026-27 to 2030-31 with a total financial outlay of Rs. 3.15 lakh crore (US$ 33 billion). Launched in February 2019, the scheme provides eligible landholding farmer families with Rs. 6,000 (US$ 62.54) annually through three equal instalments under the Direct Benefit Transfer (DBT) system. Since its launch, more than Rs. 4.47 lakh crore (US$ 46.83 billion) has been transferred directly into farmers' bank accounts through 23 instalments. Under the 23rd instalment, over 9.49 crore farmers received Rs. 18,984 crore (US$ 1.99 billion). During the COVID-19 pandemic, the scheme disbursed more than Rs. 1.71 lakh crore (US$ 17.92 billion), while women farmers have collectively received over Rs. 1.06 lakh crore (US$ 11.10 billion), with nearly one in every four beneficiaries being a woman farmer. The continuation of the scheme reinforces the Government's commitment to strengthening farmers' livelihoods through transparent, technology-driven financial support.

Independent evaluations by the Development Monitoring and Evaluation Office (DMEO) of NITI Aayog highlighted the scheme's positive impact on agricultural investment and rural incomes. More than 92% of beneficiaries reported using the assistance for agricultural activities, while around 85% confirmed higher farm income and reduced dependence on informal credit. Between 2020-21 and 2025-26, the area under cultivation increased by 9.65%, agricultural productivity rose by 10.53%, and total foodgrain production grew by 21.18%, reflecting the combined impact of PM-KISAN and broader agricultural support measures. Leveraging Aadhaar authentication, digital verification and the DBT system, PM-KISAN has emerged as a model for transparent welfare delivery under the Digital India initiative. The scheme is expected to further strengthen agricultural investment, improve productivity, reduce farming risks and support rural economic growth while advancing the vision of Viksit Bharat.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.