India’s Ag Tech Market Poised for Growth
The Indian ag tech industry is expected to experience significant growth in the coming years, with revenue predicted to reach $204 billion by 2025, writes Shubhangi Bidwe in a recent article in AgriBusiness Global DIRECT. Another analysis estimates that the industry will see an increase of about $35 billion during the same period. Between January 2020 and June 2022, approximately 100 ag tech startups in India raised close to $1.33 billion across 139 deals, indicating a growing interest in the sector.
The supply chain technology and output market segments are currently the biggest growing segments in the Indian ag tech industry, with an estimated market potential of about $12.1 billion, according to a report by Inventiva. Startups in this segment, such as Ninjacart, Waycool, and Samunnati, dominate the market. The precision farming, analytics, and advisory segment is also growing, with companies like Clover, Cropin, KhetiNext, and Zentron providing farm-specific data and insights to farmers.
Artificial intelligence (AI), machine learning (ML), and the internet of things (IoT) are being used by more than 1,300 agriculture startups in India to boost efficiency and productivity. These startups are concentrated in Karnataka, Maharashtra, and the Delhi National Capital Region (NCR). Various ag tech companies are active in different segments, including IoT-powered agriculture and drones, marketplaces and e-distributors, farm inputs, precision agriculture and farm management, farmers’ advisories, equipment leasing, meat delivery services, crop quality measurement, intelligent farm equipment, hybrid seeds, and hydroponics.
Ag tech companies in India are providing services such as missed call-based ordering, on-demand machinery leasing, and credit assessment based on risk profiles created using technology like geotagging and remote crop monitoring. Investments in Indian ag tech have increased significantly in recent years, with a total investment of $242 million in 2020. The meat delivery segment attracted the most funding in 2020, followed by marketplace and e-distribution businesses.
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Despite the recent rollback of three farm bills in India, which were praised by the ag tech industry, ag tech players in the country will continue to push forward with the pace of innovation and diverse funding. The government has also introduced initiatives such as the Digital Agriculture Mission (DAM) Initiative, AgriStack, Unified Farmer Service Platform (UFSP), and the Sub-Mission on Agricultural Mechanization (SMAM) scheme to support the agriculture sector and promote the adoption of technology.
However, there are challenges ahead, and the government and ag tech companies must work together to create awareness among entrepreneurs and highlight the benefits of adopting these technologies. The future of ag tech in India looks promising, but it is crucial to remain committed to goals and lay the foundation for a better future for Indian agriculture and ag tech entrepreneurs.
Read the full article in AgriBusiness Global DIRECT.
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