Agri startup: The start-up culture in India is playing a crucial role in the nation’s development. It is helping to drive economic growth and create more jobs. As the global economy continues to face difficult times, India has seen a positive economic growth, with 108 unicorns and a promising future. The government is actively encouraging the Agri startup ecosystem, which will benefit both citizens and the nation as a whole.
The Centre wants to support businesses that could develop the country’s agriculture sector by using technologies including artificial intelligence, machine learning, remote sensing, big data and blockchain. To encourage access to low-interest loans, the Centre intends to include financial support and tax benefits for agri-tech firms in the upcoming budget.
The government is striving to create favourable conditions to encourage the establishment of micro-cold storages and other such facilities by providing incentives for agricultural land use. Additionally, measures are being taken to address supply chain issues such as excessive wastage, inadequate logistics, and inadequate infrastructure.
Potentially the largest private-sector industry
According to a report, India has immense potential to reap huge benefits from its investments in agri-tech. It is estimated that a total investment of USD 272 billion can generate a revenue of USD 813 billion and create job opportunities for 15.2 Crore people. This highlights the tremendous potential of agri-tech in driving India’s economy and improving the livelihood of its people.
An Inc42 report suggests that India’s agri-tech sector is expected to grow to an impressive $24.1 Billion by 2025. Another Bain & Co report projected that India’s agri-tech sector is likely to reach a value of $35 billion by 2025.
The Covid pandemic and the conflict in Ukraine have had a major impact on the global food system. They have created an urgent need for countries like India to increase their capacity to provide sustainable food solutions.
The Centre is taking steps to enhance the productivity, quality, profitability and efficiency of the agriculture and related areas by implementing initiatives to develop these sectors.
A month after the launch of INR 500 crore agritech-focused accelerator programme by Indian Union Agriculture Minister Narendra Singh Tomar, a significant milestone has been achieved in the development of Indian startup that are specifically focused on agri-tech.
The data presented in these reports paint a promising picture of the Indian Agriculture industry, demonstrating its great potential. Furthermore, the government’s efforts to modernise and transform the industry into agri-tech are commendable.
Agri startup- Challenges ahead and potential
Despite its potential, agri-tech could face numerous obstacles that could impede its growth.
- The mechanisation level in India is estimated to be between 40-45 percent, with some states such as Uttar Pradesh, Haryana and Punjab having higher mechanisation levels than others. Unfortunately, the mechanisation levels in the north-eastern states of India are minimal. While in developed countries, the mechanisation percentage is as high as 90.
- More than 30% of the produce from farms are lost due to inadequate cold chain infrastructure.
- The NITI Aayog cited a study that estimated annual post-harvest losses close to Rs 90,000 crore.
- Lack of all-weather roads and connectivity make supply chain erratic.
In order to overcome these obstacles, the Indian Government is working diligently to improve the infrastructure. It is offering tax incentives to create micro cold storage facilities to reduce food wastage and investing heavily on roads and highways.
Also Read: PM Modi’s big gift to North-eastern states
The substantial investment in the north east will facilitate the development of infrastructure and connectivity in the area, helping to alleviate any existing impediments. At present, a majority of the Indian population (approximately 58%) relies on agriculture to make a living. By carefully leveraging technology, the agricultural sector in India could be significantly transformed.
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