Union Budget 2025: How EV adoption in agriculture will drive in green revolution

The upcoming Union Budget 2025 is poised to play a transformative role in advancing India’s green revolution, particularly in the agricultural sector, which forms the backbone of our economy. With sustainability and innovation as key priorities, it is imperative to focus on integrating green technologies into farming practices while providing robust support for farmers to adopt these solutions effectively. One significant area that demands attention is the promotion of electric vehicles (EVs) in agriculture, especially electric tractors, which can revolutionize farming by offering cleaner, more efficient, and cost-effective alternatives to traditional machinery.

To accelerate this transition, we hope the budget introduces enhanced subsidies for EV adoption tailored specifically for agricultural applications. These incentives can lower the financial barriers for farmers, making it easier to invest in electric tractors and other eco-friendly farming equipment. Additionally, a reduction in Goods and Services Tax (GST) rates on EV components, batteries and related infrastructure would further drive affordability, encouraging manufacturers and consumers alike to transition to greener alternatives.

Another critical aspect is the expansion of charging infrastructure in rural areas. Investments in a reliable and accessible charging network are essential to ensure the widespread adoption of EVs in agriculture. Setting up charging stations at rural markets, agricultural hubs, and cooperative societies can facilitate seamless integration of electric tractors and other EVs into the daily operations of farmers. This move would not only enhance operational efficiency but also contribute significantly to India’s Net Zero 2070 vision by reducing carbon emissions in one of the largest contributing sectors.

Moreover, the budget must prioritize research and development (R&D) to advance EV technologies tailored to Indian agricultural needs. Allocating funds for the development of lightweight, durable, and cost-effective electric tractors that cater to small and marginal farmers can ensure that the benefits of the EV revolution are equitably distributed. Collaborating with startups and academic institutions to drive innovation in battery technology, charging solutions, and EV design will further bolster India’s position as a global leader in green technology.

In addition to EV adoption, the budget should also address broader sustainability goals in agriculture. Incentives for precision farming technologies, renewable energy integration on farms, and organic farming practices can create a holistic approach to green agriculture. Providing subsidies for solar-powered irrigation systems and promoting water conservation technologies will not only reduce the environmental impact of farming but also enhance productivity and cost savings for farmers.

The Union Budget 2025 presents an unparalleled opportunity to empower farmers with the tools and technologies needed to adopt sustainable practices. By focusing on electric tractors, enhanced subsidies, GST reductions, and charging infrastructure, the government can create a supportive ecosystem for green farming. These measures will not only boost the income and productivity of farmers but also align India’s agricultural sector with its long-term climate goals. With the right policies and investments, the agricultural sector can emerge as a model for sustainable growth, driving the nation toward a greener and more prosperous future.

The author is Co-founder And COO, Autonxt Automation. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost’s views.