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Opportunities for India Agritech

  • The Agriculture & Allied sectors, which is the largest employer of workforce in India, registered a growth of 4% in FY23.

  • The fact that the sector employs nearly half of the country’s workforce but contributes to less than 1/5th of the overall GVA indicates that there’s tremendous opportunity for improvement in efficiency of agricultural activities.

  • Other factors like rising demand for healthier food, changing climate conditions, water shortage and massive wastage of food post harvest, together necessitate the adoption of AgriTech in the country.

  • As internet & smartphones penetrate and reach every part of rural India and more credit flows to farmers, in the next decade a complete transformation of agricultural activities can be expected with the help of AgriTech solutions.

Key Metrices of India's Agriculture Industry:

  • Impact on Trade - India's agriculture export contributes 11.7% to overall merchandise export of the country in FY23.

  • Impact on GDP - Agriculture & allied industries contribute 18.3% to overall Gross Value Added (GVA) of the country in FY23.

  • Impact on Livelihood - 55% of India's population (i.e. over 700 million people) depend on agriculture and allied industries for livelihood.

  • 86% of Indian farmers are small and marginal

  • Over $20 Billion is the value of post-harvest loss suffered in FY21, which is approximately 2.35% of the GDP.

  • Less than 58% of overall agricultural income is earned by small and marginal farmers.

  • India yield per hectare (for cereals) is less than the world average and other major agricultural nations like Brazil, China and US.

  • India's level of farm mechanization (i.e. the use of machinery in Indian farms) is 47%, which is also lower than other agricultural nations like Brazil, China and US.


This article is a part of the February'24 edition of our Startup Newsletter. Here's the complete publication:


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