Socioeconomic Impact of Government Schemes on Small Farmers in India

Abstract

This paper examines the socioeconomic impact of major government schemes—including Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), Minimum Support Price (MSP), Pradhan Mantri Fasal Bima Yojana (PMFBY), National Food Security Mission (NFSM), and other direct benefit transfer initiatives—on small farmers in India. Covering the period 2015–2022 across key agricultural states, this study combines regression analysis based on secondary data from government databases with insights from field surveys to assess the effectiveness and challenges of these schemes. The paper highlights the differential impact of these policies on financial stability, agricultural practices, and overall rural development. Quantitative findings are supported by several case studies, including an in-depth analysis undertaken in Tamil Nadu and assessments conducted in Uttar Pradesh, Haryana, and Rajasthan. The findings underscore that while direct financial transfers such as PM-KISAN may offer short-term relief, issues of targeting and inclusivity remain. MSP and PMFBY have experienced implementation challenges that limit their overall effectiveness. The study concludes with policy recommendations aimed at improving scheme delivery and ensuring long-term socioeconomic benefits for smallholder farmers.