Commerce and Industry Minister Piyush Goyal on Sunday said that the government is looking at setting up a fund for agritech businesses.
Agritech simply refers to agricultural technology, which includes everything from artificial intelligence to genetically modified crops.
During a webinar, the Minister also said that technology and innovation will be the driving force behind India’s prosperity and added that the government expects a large number of startups to participate in Defense R&D, for which the government will launch an agritech fund. ready to.
He also said that the government wants to see more startups involved in defense R&D as there is a lot of potential for entrepreneurs in the drone, defense and technical textile sectors.
However, with over 65,000 registered firms in just five years, India boasts of the third largest startup ecosystem in the world.
The future of India’s agriculture sector
This sector is important for any economy as it provides food as well as employment and contributes to technological progress.
agritech business India There is believed to be a promising future, especially as it becomes more integrated with tech entrepreneurs.
India’s agritech sector grew from 43 startups in 2013 to over 1,000 enterprises in 2020, due to increased rural Internet penetration, increased post-harvest and supply chain losses, expanding investor interest in the sector Is.
However, as per reports, it still has a slower growth rate than expected. The slow growth in the agritech industry can be attributed to several variables, but experts agree that funding and supply chain challenges are the most significant.
It is possible that these problems could be addressed by increased investment from domestic and foreign private enterprises as well as government agencies, which would result in exponential growth and development in agritech over the next several years.
However, it is understood that over the next five years, the agritech industry will grow at a CAGR of around 19%, driven by growth in food consumption and disposable income across sectors.
More than 80% of the world’s population is believed to depend on agriculture for their livelihood, creating a great opportunity for farmers to use technology to improve their productivity and, consequently, increase in revenue per hectare and They produce.
Additionally, in the case of India, the agritech sector received funding of $1 billion between 2017 and 2020, according to the latest Bain & Company analysis. According to the latest Bain & Company report, the market is projected to grow to $30-35 billion by 2025.
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Data analytics, artificial intelligence, machine learning, internet of things and software as a service are all being used by agritech companies to challenge the traditional agricultural economy (SaaS). It is helping to ease various pain points across the traditional agricultural value chain spectrum with the potential to unlock a $24 billion industry.
Presently, farmers have to face various challenges to make a living. Farming,
Misconduct in unorganized agricultural markets, as well as lack of well-organized produce marketing channels, is causing concern among Indian farmers. They also have to deal with the lack of transportation and storage options, among other problems.
They have limited access to advanced technologies that allow them to access timely information and agricultural solutions, leaving them vulnerable and isolated – and here comes India’s startups.
It is believed that agritech companies can quickly address these concerns by changing the face of Indian agriculture.
Meanwhile, the government is encouraging such startups and has promised that farmers’ income will double by the end of 2022.
However, companies like Ninjakart, Agrostar, Waycool, Stelaps, Croppin Technology, EM3 Agriservices, Intello Labs, Ibono and other such businesses are helping India’s agritech industry grow by helping farmers.
As per the latest available data, the agriculture sector received around $3.23 billion in global investment. A total of $313 million was raised by 53 Indian agritech companies. This is a significant step for Indian businesses and the information provided is expected to inspire young entrepreneurs of the country to explore agricultural technologies.
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