Agricultural subsidies are necessary, as the Indian economy is largely dependent on the farming sector. Similarly, a significant chunk of farmers investment is dedicated to the pieces of machinery. As technology and machines ease the cultivation process by replacing the tedious traditional man-work with the quick and efficient machine- work. Accordingly, this could be in the form of direct subsidy (direct cash to farmer) or as indirect subsidy (agricultural income is tax-free). However, the direct subsidies are preferred as they provide direct purchasing capacity.