India’s irrigation sector has experienced substantial growth and modernisation in recent years, driven by strategic government interventions and a strong policy focus on water efficiency and sustainability. According to the recent Economic Survey 2024-25, the government has prioritised irrigation development and water conservation to improve farmers’ access to reliable water sources. It also reports that the coverage of irrigated area has increased from 49.3 per cent to 55 per cent of the gross cropped area between FY2016 and FY2021, while irrigation intensity (a measure of the extent to which land is irrigated more than once) rose from 144.2 per cent to 154.5 per cent. These improvements reflect the positive impact of key schemes such as the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and its various components, and dedicated funding and investment to promote more evolved and sustainable irrigation practices. The sector is also witnessing an increased integration of digital solutions and technologies such as internet of things (IoT), global positioning system (GPS) and geographic information system (GIS). There is also a conscious effort to improve water consumption in existing irrigation practices and optimise energy consumption by integrating renewable energy in projects.
Higher government attention and fund support
The Indian government has steered its focus to improve irrigation practices under various programmes and schemes. A major flagship programme under the Ministry of Agriculture and Farmers Welfare is the PMKSY, which targets improving water use efficiency and expanding irrigation coverage through its sub-schemes. These sub-schemes, such as the Accelerated Irrigation Benefits Programme (AIBP), Har Khet Ko Pani (HKKP), Watershed Development Component, and Command Area Development and Water Management, are propelling the growth of the sector through diverse strategies. Their progress can be traced through their respective project development. For instance, 62 priority major and medium irrigation projects have been completed under the AIBP as of December 2024, out of 99 ongoing ones. Similarly, an irrigation potential of 354,000 hectares and 109,000 hectares has been created across 21 states under the surface minor irrigation and repair, renovation and restoration of water bodies component of the HKKP between 2016-17 and 2023-24, respectively.
In addition, the Per Drop More Crop (PDMC) scheme was launched in FY2016 as part of PMKSY and later subsumed under the Rashtriya Krishi Vikas Yojana (RKVY) in 2022. The RKVY is a broad-based scheme aimed at the holistic development of agriculture and related sectors across the country. Within this framework, the PDMC primarily emphasises the promotion of water-efficient micro-irrigation systems (MIS) to enhance agricultural productivity. Moreover, government support is being extended through dedicated fund allocations to the sector. Investments have been ramped up for MIS through the Micro-Irrigation Fund (MIF). The MIF has been instrumental in funding innovative irrigation projects by offering a 2 per cent interest to states on loans. As of January 2025, loans worth around Rs 47 billion had been approved under the MIF, with approximately Rs 36 billion already disbursed.
Gradual uptake of digital technologies
India’s agricultural sector is steering towards smarter irrigation with the steady adoption of new technologies. To this end, the Indian government had announced a major revamp of the PMKSY, turning it into a smart and demand-driven irrigation initiative. It integrates IoT-based systems for real-time monitoring and management of irrigation needs. This will help in optimising water usage based on soil moisture, crop type and weather conditions, thus improving agricultural productivity. Similarly, the lift irrigation system in India is also observing a shift through various technology-based interventions. There is an increased use of GPS in undertaking surveys for designing and managing laboratory information systems, GIS-based mapping, advanced valves, supervisory control and data acquisition (SCADA) automation, and remote pump management.
Building on this digital momentum, the government has launched the Modernisation of Command Area Development and Water Management sub-scheme under the PMKSY in April 2025 with an initial outlay of Rs 16 billion. The scheme focuses on modernising irrigation infrastructure and enhancing water delivery systems from existing canals and other sources directly to farm clusters. It will incorporate advanced technologies like SCADA and IoT for efficient water accounting and monitoring. These tools are particularly beneficial for smallholder farmers, helping them manage water more effectively. In line with these developments, a digital water distribution system developed by the National Informatics Centre was introduced in Rajasthan’s Sriganganagar district in May 2024. This system provides real-time updates on irrigation water flow, ensures timely delivery on a predetermined schedule, and reduces errors commonly associated with manual water distribution.
Increased adoption of water-efficient practices
The sector is also increasingly embracing innovative and water-efficient practices, supported by regulatory focus. In this direction, the PMKSY aims to increase on-farm water use efficiency by 20 per cent over the existing 35 per cent. It is expected to conserve nearly 50 billion cubic metres of water. These efforts are also being driven by enhanced central assistance to states, especially those facing acute water stress. For instance, Gujarat added 120,000 hectares through MIS in 2024-25 alone, with Banaskantha district leading the adoption, followed by Junagadh and Rajkot. Similarly, Madhya Pradesh’s approval of the Jawad-Neemuch Pressurised Micro Irrigation Project in September 2024 will cover 108,000 hectares of land, driving water conservative irrigation techniques.
The adoption of water-efficient infrastructure and conservation practices is also picking up pace. States like Madhya Pradesh are complementing these efforts by planning the construction of 50,000 farm ponds for irrigation purposes, promoting local water storage and judicious usage. In Punjab, PDMC is being implemented across all districts, including the water-stressed Malwa region, to promote efficient on-farm water use. Another part of PMKSY, the Watershed Development Component, is focused on water-saving measures. It has led to the creation or rejuvenation of 115,000 water harvesting structures as of December 2024.
Integration with renewable energy
Cleaner energy sources like solar power are being increasingly used in irrigation practices to address energy access challenges, reduce irrigation costs and promote environmental sustainability. A flagship initiative driving this shift is the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, which has made remarkable progress. As of March 2025, the scheme has facilitated the installation of over 0.7 million standalone solar pumps under its Component B and solarised over 6,300 individual pumps and over 0.3 million on feeder-level under Component C. Overall, more than 550 MW of solar capacity has been installed under Component A of the scheme. These solar-powered systems significantly reduce reliance on diesel and conventional electricity, offering farmers reliable and clean energy for irrigation. In fact, state governments are also actively complementing this national initiative through targeted interventions. For instance, Karnataka has plans to install 40,000 off-grid solar pump sets under PM-KUSUM Component B, with a budget of around Rs 12 billion. The state government has also increased its subsidy share from 30 per cent to 50 per cent, making the programme more accessible to small and marginal farmers.
In sum
The outlook for the sector is promising, as government programmes continue to support through policy-driven and budgetary initiatives. This thrust will allow the sector to significantly enhance irrigation coverage, boost water-use efficiency and support climate-resilient agriculture. Favourable climatic conditions will also improve the sector’s performance. As observed in 2024, India received 107.6 per cent of its long-term average rainfall, and forecasts for 2025 predict a similarly positive 105 per cent of average rainfall. This will ensure robust water availability for irrigation, helping to secure even the dry regions. This improved monsoon trend is also expected to enhance crop yields, stabilise food prices, and contribute to broader economic growth. Going forward, a shift from a supply-focused approach to a smarter, demand-driven system will be accelerated by the new and restructured offshoots of government schemes.
