Rashtriya Krishi Vikas Yojana: A Decade of Strengthening State-Led Agricultural Growth

By Mr TPM | Updated July 10, 2025

With agriculture being the backbone of India’s economy, ensuring robust growth in this sector has remained a top priority for successive governments. In this direction, the Government of India launched the Rashtriya Krishi Vikas Yojana (RKVY) in 2007-08 as a pioneering initiative to provide flexible funds to states for agriculture and allied sectors based on their specific needs and priorities.

Now rebranded as RKVY-RAFTAAR (Remunerative Approaches for Agriculture and Allied Sector Rejuvenation), this scheme has empowered states to implement tailor-made strategies to improve farm income, productivity, and infrastructure.

What is Rashtriya Krishi Vikas Yojana?

RKVY is a centrally sponsored scheme that provides financial assistance to state governments to plan and execute agricultural development programs as per their agro-climatic and socio-economic conditions. Unlike other centrally-driven schemes, RKVY allows greater autonomy to the states.

The objective is not just to increase production, but to ensure holistic development of agriculture and allied sectors like horticulture, animal husbandry, dairy, fisheries, and agri-marketing. The scheme covers everything from soil health to post-harvest management.

Key Objectives of RKVY

• Ensure integrated and holistic development of agriculture and allied sectors.
• Encourage states to increase investment in agriculture.
• Promote infrastructure development, innovation, and agro-entrepreneurship.
• Bridge the resource gap between central and state agriculture funding.
• Strengthen backward and forward linkages in agricultural supply chains.

Evolution of the Scheme

Since its inception in 2007, RKVY has evolved through multiple phases:

1. RKVY Classic (2007–2016): Provided funds based on states’ agriculture spending.
2. RKVY-RAFTAAR (2017–2020): Focus shifted to high-value agriculture, innovation, and value chains.
3. RKVY 2.0 (2021 onwards): Aligned with the goal of doubling farmers’ income, including agri-startup incubation and modern infrastructure development.

In its current avatar, RKVY-RAFTAAR aims to encourage states to undertake projects that yield remunerative outcomes for farmers, including integrated farming, digital agri-solutions, precision farming, and climate-resilient agriculture.

Major Components of RKVY-RAFTAAR

1. Infrastructure & Assets Development: Storage, irrigation, farm machinery banks, cold chains, etc.
2. Value Addition & Marketing: Agro-processing, branding, e-markets, logistics.
3. Agri-Entrepreneurship and Startups: Grants to agri-tech innovations via incubation centers.
4. Flexi Funds for States: For unique, state-specific needs such as tribal farming, rainfed agriculture, etc.
5. Special Projects: Cluster-based initiatives, organic farming, and peri-urban agriculture.

Achievements and Impact

• ₹1.5 lakh crore has been allocated under RKVY since its inception.
• More than 10,000 projects completed by various state governments.
• Boosted productivity in states like Punjab, Maharashtra, Andhra Pradesh, and Karnataka.
• Promoted digital farming, water-saving technologies, and improved seed varieties.
• Incubated over 800 agri-startups under the agri-entrepreneurship component since 2018.

Case Study:
In Karnataka, RKVY funds were used to create community seed banks, increasing access to high-yielding varieties among small farmers. Similarly, in Bihar, cold storage chains were developed using RKVY assistance, significantly reducing post-harvest losses.

Agri-Startups: New Growth Engine

One of the most innovative arms of RKVY-RAFTAAR is the promotion of agri-startups. Selected startups receive:

• Funding up to ₹25 lakhs as grant-in-aid
• Mentorship through RKVY incubation centers
• Support for scaling innovations in areas like drone farming, organic inputs, farm-to-fork supply, and mobile agri-advisory platforms

This approach is gradually transforming agriculture from a traditional occupation to a modern, technology-driven enterprise.

Role of States: Tailored Interventions

States have used RKVY funds for a variety of needs:

• Gujarat: Promoted micro-irrigation systems for water conservation.
• Odisha: Focused on millet cultivation and tribal farming.
• Madhya Pradesh: Improved agri-credit linkage and mechanization for smallholders.
• Tamil Nadu: Introduced farmer-producer company models for better market access.

RKVY's flexibility and decentralization have made it a preferred tool for targeted agricultural investments across India.

Challenges Ahead

Despite its wide reach and effectiveness, RKVY also faces challenges:

• Timely fund release and utilization remain a concern in some states.
• Project monitoring and impact measurement need strengthening.
• Greater involvement of farmers’ organizations is required for on-ground ownership.

The government is now working to integrate real-time data monitoring systems and is encouraging states to publish progress reports regularly for increased transparency.

Conclusion

The Rashtriya Krishi Vikas Yojana stands as a testament to India’s federal approach to agricultural growth, offering both flexibility and focused support. By empowering states to address their unique agri-challenges and investing in modern, sustainable practices, RKVY is helping India move toward a resilient and income-driven agricultural economy.

As agriculture continues to face threats from climate change and resource constraints, schemes like RKVY will play a critical role in future-proofing Indian farming.