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Overview
According to Census (2011), more than 50% of India’s total workforce is engaged in agriculture and allied sector activities and the sector itself accounts for 18.8% (First Advance Estimates) of country's Gross Value Added (GVA) for the year 2021-22 (at current prices). India holds the record for second-largest agricultural land in the world, with around 60% rural Indian households making their living from agriculture.
In recent years, there has been a surge of agritech startups, which are being termed as the “ray of hope” in Indian agriculture. Additionally, it is becoming more and more evident that agritech startups can provide relevant and innovative solutions to the challenges faced across the agricultural value chain.
Examples of countries like Israel, China and US can be taken for understanding the transformational impact using technology can have on revolutionising agricultural practices and subsequently, the lives of people associated with the agricultural industry. The use of AI, IoT, Big Data Analytics, drones for farm mapping, ICT applications, technology for weather forecasting, amongst numerous other technological applications prove to show the potential Indian agritech startups have in transforming the country’s agriculture industry.
There are some challenges faced by the startups working in this industry. Lack of information on sowing and pre-harvest activities, lack of awareness of government policies at farm level, lack of infrastructure and connectivity, lack of skilled labour for adopting tech integration at farm level, amongst others are some of the challenges faced by startups working in this industry.
To overcome these challenges, both government and private players alike are taking various initiatives. In Budget 2023, ‘Agriculture Accelerator Fund’ was introduced to encourage agri start-ups founded by young entrepreneurs in rural areas and the agricultural credit target was also increased to Rs 20 lakh crore with a focus on animal husbandry, dairy, and fisheries (Budget 2023). Additionally, there are numerous startups emerging in the agriculture sector despite all the challenges faced by the sector. These startups are not only bringing in new and innovative solutions to solve some of the core challenges but are also providing employment opportunities and improving livelihoods of stakeholders associated with the sector.
As of 10th April 2023, there are around 374 DPIIT recognized startups in the agriculture industry spread across 490 districts, providing employment to around 38,000 people (Data as of 10th April 2023). Additionally, there are about 2207 DPIIT recognized startups in the Agri-Tech industry spread across 360 districts, providing employment to more than 18,000 people. The highest number of recognised startups in this sector are in Maharashtra ~459 (Data as of 17th April 2023).
Startups in the spotlight:
- Fruvetech Private Limited
The startup is focused on development of a device to enhance shelf life of fruits using an innovative idea. - Wolkus Technology Solutions Private Limited
The startup under the brand named ‘Fasal’, develops an AI-powered IoT platform for precision agriculture.
- Natura Crop Care
The startup has developed biological and botanical products to meet the demand of residue free produce which help the farmers across in managing the plant-soil health and plant nutrition.
Way Forward
To further grow this sector, examples of countries like Israel, China and US can be taken for understanding the transformational impact using technology can have on revolutionising agricultural practices and subsequently, the lives of people associated with the agricultural industry. The use of AI, IoT, Big Data Analytics, drones for farm mapping, ICT applications, technology for weather forecasting, amongst numerous other technological applications prove to show the potential Indian agritech startups have in transforming the country’s agriculture industry.
With the increasing adoption of digital technologies and the rise of startups, the sector is poised for rapid growth in the coming years. Agritech startups are developing innovative solutions for various aspects of agriculture, including precision farming, supply chain management, and market linkages. These technologies can help improve productivity, reduce costs, and increase the income of farmers. As the sector continues to grow, it has the potential to not only transform India's agriculture sector but also create new employment opportunities and contribute towards the growth of the country's economy. As we move forward, it is important for agriculture startups to stay focused on their mission of self-reliance and sustainability, building on the successes of the past. The vision of a self-reliant India is deeply embedded in the startup ecosystem and will remain a guiding force for the years to come.
If you are a startup making a difference in the Agri Sector, apply for the National Startup Awards 2023 under the following categories and more.
To apply for the National Startup Awards 2023, you have to be a DPIIT recognised startup.
Click here to get recognised.
