The Union Cabinet on Wednesday approved a ？1,600 crore sub-scheme under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) for the 2025–26 period in a bid to strengthen micro-irrigation infrastructure. The decision will help deliver water from established sources directly to farm gates for fields up to 1 hectare, according to an official statement.
The sub-scheme — the Modernisation of Command Area Development and Water Management (M-CADWM) — will run on a pilot basis across 78 sites covering almost 80,000 farmers. This will use underground pressurised piped system to connect irrigation sources with farmland as a last-mile connectivity between water sources and farms.
The scheme also aims to modernise the irrigation water-supply network, directing water from existing canals or other sources to designated clusters.
The statement said the projects would be made sustainable through irrigation management transfer (IMT) to the water User Society (WUS) for the management of irrigation assets.
The water-user societies will be given handholding support by linking them with existing economic entities, such as farmer producer organisations or primary agricultural credit societies, for five years. Youngsters will also be encouraged to take up farming and adopt modern methods of irrigation, the statement said.
Also Read
Cabinet approves four rail projects in three states worth Rs 18,658 crore
Syrian Prez Ahmed al-Sharaa forms transitional govt with diverse cabinet
Cabinet okays Rs 23K cr PLI scheme for electronics component manufacturing
Cabinet approves ？10,601 crore brownfield ammonia urea plant in Assam
Uttarakhand Finance Minister Premchand Aggarwal resigns from Cabinet
The initial approval is for taking up pilot projects across various agro-climatic zones in the country by challenge funding the states.
Based on the learnings in the design and structuring of these projects, the National Plan for Command Area Development and Water Management will be launched in April 2026 for the 16th Finance Commission period, the statement said.
Doubling of Tirupati-Pakala-Katpadi rly section in Andhra, Tamil Nadu gets nod
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the doubling of the 104 km-long Tirupati–Pakala–Katpadi single railway line section in Andhra Pradesh and Tamil Nadu with a total cost of ？1,332 crore, the government said on Wednesday. The CCEA also okayed two infrastructure projects related to the transport sector that are aimed at removing congestion and enhancing integrated transport development, Union Minister Ashwini Vaishnaw said.
Connect with us on WhatsApp
More From This Section
Tariffs to hit growth, but India may dodge the worst: Guv Malhotra
RBI's rate cut, monetary stance change to 'accommodative' timely: Experts
India should cut 'outlier agri tariffs' to tackle US tariffs: Policy paper
DIPAM to urge mutual funds to include PSU stocks in their portfolios
Unemployment rate dips marginally to 4.9% in 2024, shows govt survey
The reciprocal tariffs imposed by the US will negatively affect domestic growth, but the impact on India will be far less severe than in many other countries, Reserve Bank of India (RBI) Governor Sanjay Malhotra said on Wednesday.
Domestic growth concerns prompted the RBI’s Monetary Policy Committee to cut the policy repo rate by 25 basis points to 6 per cent for the second consecutive policy meeting. The policy stance was also changed to ‘accommodative’.
“First and foremost, uncertainty dampens growth by affecting investment and spending decisions of businesses and households. Second, the dent in global growth due to trade frictions will impede domestic growth,” Malhotra said while announcing the monetary policy review and explaining the implications of trade-related tariffs.
However, he said it would be difficult to quantify the impact of the tariffs, as several unknowns remain — such as the effect of relative tariffs, the elasticities of Indian export and import demand, and the policy measures adopted by the government, including the proposed bilateral trade agreement with the US this fall.
“These make the quantification of the adverse impact difficult,” he said.
Also Read
We will provide sufficient liquidity for monetary policy transmission: RBI
Financials of urban co-operative banks' have been good: RBI Governor
MPC highlights: Growth estimate revisions mainly due to tariff-related uncertainties, says Malhotra
'I'm not Sanjay from Mahabharat': RBI Governor quips on future rate cuts
Accommodative stance, lower credit costs may boost equity market: Emkay
At the same time, he noted that from India’s perspective, the impact of these tariffs is relatively limited compared to other countries.
He pointed out that India’s exports account for about 12 per cent of gross domestic product (GDP), and the country’s exposure to the US market is less than 2 per cent. Citing the example of China, Germany, and the European Union (EU), Malhotra said India is in a better position than many other economies.
“In contrast, China’s exports represent around 19 per cent of GDP, Germany’s 37 per cent, and the EU’s over 30 per cent. Smaller countries, like Iran or Taiwan, have even higher export-to-GDP ratios. In this context, India is better positioned than many other economies,” he said.
“As for the tariffs, they are less significant for India because our trade surplus with the US is much smaller than that of other countries. This gives us a comparative advantage in the context of US tariffs. However, it is true that overall, such tariff issues could dampen growth.”
When asked about a currency devaluation competition amid the tariff war, Malhotra said that if there is downward pressure on the rupee due to global factors, it would be allowed to adjust accordingly. He reiterated that the RBI intervenes in the foreign exchange market only to curb excessive volatility.
“The market in India is deep and liquid, and market forces are best suited to determine the rupee’s value… That said, if there is excessive volatility or disruption in the currency markets, we are prepared to step in and provide support where necessary. We will intervene if required, but our approach remains focused on ensuring stability rather than targeting specific levels for the rupee.”
More From This Section
RBI's rate cut, monetary stance change to 'accommodative' timely: Experts
India should cut 'outlier agri tariffs' to tackle US tariffs: Policy paper
DIPAM to urge mutual funds to include PSU stocks in their portfolios
Unemployment rate dips marginally to 4.9% in 2024, shows govt survey
Coal India's payment to govt drops, yet big support for miner states