How Centre’s PM-KISAN plan has transformed India’s rural economy

Dr ML Jat

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, launched by the Indian Government in February 2019 and designed to provide direct income support to farmers across the country, has played a key role in enhancing agricultural productivity and ensuring financial stability among rural communities. This initiative seeks to enhance the income of farmers by providing them direct cash transfers, thus improving their livelihoods.

First introduced in Gorakhpur in Uttar Pradesh, the PM-KISAN scheme aims to supplement the finances of landholding farmers. With an annual benefit of Rs 6,000 distributed in three equal instalments, the scheme helps farmers meet essential agricultural expenses and avoid reliance on moneylenders. This financial support has proven transformative, enabling farmers to invest in equipment, seeds, fertilisers, pesticides and other agricultural inputs, thus enhancing crop yields, agricultural productivity and sustainability.

Since its inception, a sum of over Rs. 3.02 lakh crore has been disbursed to over 11 crore farmers, marking a significant milestone in Indian agriculture through 16 instalments under the scheme. Further, the recent 17th instalment, amounting to Rs 20,000 crore, has strengthened the rural economy, bringing the total disbursement to over Rs 3.24 lakh crore. The scheme’s economic impact and reach over the rural economy have been profound. A study by the International Food Policy Research Institute (IFPRI) found that PM-KISAN beneficiaries in Uttar Pradesh received the full amount without leakage, significantly improving their ability to invest in agriculture. The infusion of over Rs 3.24 lakh crore into rural economies has not only boosted farmers’ financial stability, it has also stimulated local markets and services.

PM-KISAN stands out for its effective integration of Information and Communication Technology (ICT) for efficiency. The scheme employs a Direct Benefit Transfer (DBT) mechanism to ensure seamless, transparent and timely fund disbursement, directly into farmers’ bank accounts. This method, facilitated by the integration with Aadhaar, Public Financial Management System (PFMS) and the National Payments Corporation of India (NPCI), minimises the risk of fraud and ensures that benefits reach the intended recipients.

The PM-KISAN website, launched exclusively for this scheme, integrates various data points to validate beneficiaries, ensuring eligible farmers receive benefits. Additionally, Aadhaar authentication has been made mandatory, further enhancing transparency and efficiency.

To aid beneficiaries, the PM-KISAN scheme includes several innovative support initiatives. The dedicated web portal, mobile application and SMS alerts allow farmers to track their status, complete e-KYC and address grievances. The “Know Your Status” (KYS) module provides farmers with a comprehensive overview of their registration and benefit status at a single click. This has empowered farmers with real-time information and reduced their dependency on intermediaries.

Furthermore, the introduction of the Kisan e-Mitra, an AI-powered chatbot, has revolutionised support for farmers, offering real-time assistance in 11 languages. This service, coupled with the onboarding of over 5 lakh Common Service Centres (CSCs) and the Indian Post Payments Bank (IPPB), brings scheme-related services to farmers’ doorsteps, ensuring inclusivity and accessibility.

Way forward

The Indian Government is continuing to refine and expand the PM-KISAN scheme. As part of the Viksit Bharat Sankalp Yatra, a nationwide campaign aimed to include all eligible farmers, with over one crore additional farmers already benefiting. Continuous feedback through the Kisan Call Centre and field surveys ensures that the scheme evolves to meet the needs of its beneficiaries effectively.

The scheme’s robust grievance redressal mechanism, with a resolution rate nearing 99 per cent, reflects its commitment to addressing farmer issues promptly. Village-level nodal officers are providing farmers on-ground support, further enhancing the scheme’s reach and effectiveness.

As PM-KISAN enters its next phase, the focus remains on ensuring every eligible farmer benefits from it. With its blend of financial support, technological integration and continuous innovation, PM-KISAN is all set to remain a key foundation of India’s agricultural and rural development strategy, promoting a self-reliant and prosperous farming community. Linking PM-KISAN with the Government of India’s initiatives on Digital Public Infrastructure (DPI) with use of artificial intelligence will further strengthen the delivery of the scheme.

The writer is Global Research Program Director, Resilient Farm and Food Systems

Join Whatsapp Channel of The Tribune for latest updates.