India’s agricultural sector is set for a significant boost with the announcement of the Nutrient-Based Subsidy (NBS) rates for the Kharif season of 2025, applicable from 1 April to 30 September, covering Phosphatic and Potassic (P&K) fertilizers. The government has allocated approximately Rs. 37,216.15 crore under this scheme, an increase of Rs. 13,000 crore compared to the Rabi season 2024–25, reflecting its commitment to supporting farmers. The subsidy, extended to fertilizer manufacturers and importers at approved rates, ensures that fertilizers are available to farmers at controlled and affordable prices. The government is making available 28 grades of P&K fertilizers to farmers at subsidised prices through fertiliser manufacturers/importers. For Kharif 2025, the approved subsidy rates are Rs. 43.02 per kg for Nitrogen (N), Rs. 43.60 for Phosphorus (P), Rs. 2.38 for Potash (K), and Rs. 2.61 for Sulphur (S). The present study examines the effects of these revisions on fertilizer use, cropping patterns, and crop yields, offering insights into their potential role in improving productivity and sustainability in Indian agriculture. The policy recommendations emerging from this analysis include encouraging balanced nutrient application, strengthening monitoring of fertilizer distribution, promoting awareness on efficient fertilizer use, and integrating subsidies with soil health management programs to maximize long-term benefits.