Piyush Goyal, the commerce and industry minister, said on Sunday that the government is exploring the possibility of establishing a fund for agritech entrepreneurs.
Agritech is a broad term that encompasses agricultural technology, which ranges from artificial intelligence to genetically modified crops.
During a webinar, the minister also stated that technology and innovation would be the driving forces behind India’s growth and that the government anticipates a large number of startups participating in defence R&D, for which the government is willing to establish an agritech fund.
He also stated that the government would like to see more companies participating in defence R&D, as the drone, defence, and technical textile industries offer tremendous opportunity for entrepreneurs.
However, India now has the world’s third-largest startup ecosystem, with over 65,000 registered enterprises in just five years.
The Future Of India’s Agriculture Technology Sector
This industry is vital to any economy since it not only produces food but also creates jobs and advances technology. The agritech industry in India is expected to have a bright future, particularly as it integrates with technology entrepreneurs.
Due to increased rural internet penetration, increased post-harvest and supply chain losses, and growing investor interest in the industry, India’s agritech sector has grown significantly, from 43 companies in 2013 to over 1,000 enterprises in 2020.
However, reports indicate that it is still growing at a slower-than-expected rate. The agritech industry’s slow growth can be attributed to a variety of factors, but experts feel the most significant are funding and supply chain issues.
It is possible that greater investment from local and international private firms, as well as government agencies, will address these issues, resulting in exponential growth and development in agritech over the next several years.
However, it is expected that the agritech business will grow at a rate of about 19 percent over the next five years because more people eat more food and have more money to spend.
Over 80% of the world’s population is estimated to rely on agriculture for their living, presenting an excellent opportunity for farmers to leverage technology to increase their productivity and, consequently, their yield per hectare and revenue.
Additionally, according to the latest Bain & Company report, India’s agritech sector received $1 billion in funding between 2017 and 2020. According to a recent report by Bain & Company, the market is expected to reach $30–35 billion by 2025.
Agritech companies are utilising data analytics, artificial intelligence, machine learning, the Internet of Things, and software as a service to disrupt the traditional agricultural economy (SaaS).
This contributes to the alleviation of many pain points throughout the traditional agricultural value chain, with the potential to unlock a $24 billion industry. Farmers currently face numerous obstacles in order to make a living from farming.
Indian farmers are experiencing distress due to malpractices in unorganised agricultural markets as well as a dearth of well-organized production marketing channels. Additionally, they face a dearth of transportation and storage options, among other issues.
They lack access to advanced technology that enables them to obtain timely information and agricultural solutions, leaving them vulnerable and isolated—which brings us to India’s startups.
Agritech businesses, it is believed, can address these challenges immediately, altering the face of Indian agriculture. Meanwhile, the government is promoting such firms and has committed to trebling farmers’ incomes by the end of 2022.
However, businesses such as Ninjacart, AgroStar, WayCool, Stellapps, CropIN Technology, EM3 AgriServices, Intello Labs, and Aibono are assisting India’s agritech industry to grow through their assistance to farmers.
According to the most recent available information, agriculture received approximately $3.23 billion in worldwide investment. 53 Indian agritech businesses raised a total of $313 million.
This is a huge development for Indian enterprises, and the information presented should stimulate the country’s young entrepreneurs to investigate agricultural innovations.
Published By – Damandeep Singh
Edited By-Kritika Kashyap
