The Indian government’s pre-budget Economic Survey reports a significant increase in private equity (PE) investments in the agritech sector over the past four years. With an annual growth rate of more than 50%, the sector has seen a surge in investment.
This growth is driven by several factors, including increasing demand for quality food, concerns about climate change and food security, and renewed investor interest in the emerging industry. The survey found that the yearly increase in private equity investments amounts to approximately INR 6,600 crore.
The survey also highlighted the existence of over 1,000 agritech startups in India that support farmers in improving their farming methods. These startups are playing an important role in driving innovation and growth in the sector.
The increasing investment in agritech startups is a positive sign for the future of the agriculture industry in India, and it is likely that this trend will continue as technology continues to advance and play a larger role in agriculture.
The Government of India, in the survey said, “This is slowly gaining acceptance with farmers… Crop yield prediction models using artificial intelligence and drones for monitoring soil and crop health have been initiated. Smart farming also enables crop diversification, which will help farmers reduce their dependence on monsoons for water.”
The agritech startups has raised 3 times the funding in 2022 compared to 2020. The sector also witnessed valuations shooting up and continued funding with unwavering investor interest. Thus, there seems to be no end to the party.
In addition, the report further stated that over 500 startups in India are focused on the millet value chain, coining along with the United Nations declaring 2023 as the International Year of Millets.
The Indian Institute of Millets Research has provided support to 250 of these startups through their incubation program, Rashtriya Krishi Vikas Yojana – Remunerative Approaches for Agriculture and Allied Sectors Rejuvenation (RKVYRAFTAAR). This is a notable development as it highlights the government’s efforts to promote and support the growth of startups in the millet sector.
The focus on millets in India is a crucial step towards addressing food security concerns and promoting sustainable agriculture practices. The increased investment and support for startups in this sector will lead to continued growth and development in the future.