AgriTech is transforming the agricultural landscape by combining technology with farming practices to enhance productivity, sustainability, and efficiency. This sector encompasses a wide range of innovations, from sensors and drones to artificial intelligence and automation, designed to improve crop management, resource optimization, and yield.
With the rise of digital tools and data-driven approaches, AgriTech is helping farmers address challenges like climate change, soil degradation, and water scarcity. It is also creating new opportunities for precision farming, reducing costs, and promoting environmentally friendly practices, ultimately reshaping the future of agriculture.
The Indian agriculture market saw consistent growth from FY19 to FY24, increasing from INR 23.8 Lakh Cr in FY19 to an estimated INR 29.7 Lakh Cr in FY24, reflecting a CAGR of approximately 5%.
Looking ahead, the market is expected to continue expanding, though at a slower pace, with projections estimating a growth from INR 30.9 Lakh Cr in FY25 to INR 38.1 Lakh Cr by FY30, reflecting a CAGR of around 4%.
The Indian agriculture market is growing due to technological advancements like IoT and drones, and a shift from grain farming to horticulture, floriculture, and animal husbandry. Government initiatives, such as the Indian Digital Ecosystem of Agriculture (IDEA), provide financial support, infrastructure, and farmer-friendly policies. Changing consumer demands for organic and high-quality produce, along with diverse climatic and soil conditions, are further driving growth.
Despite the growth, the market faces numerous challenges, including lower crop productivity compared to countries like Brazil, China, and the USA. Limited use of high-yield seeds and modern inputs, coupled with the prevalence of low-quality inputs, hampers yield improvement. Soil health is deteriorating due to excessive chemical use, affecting long-term fertility. Climate change brings erratic weather and heightens vulnerability, while rising labour costs and seasonal shortages inflate cultivation expenses and disrupt farm operations