The face of Indian agriculture is changing. Beyond the traditional image of farmers toiling in the fields, a technological revolution is taking root. Agritech is transforming the sector, which employs 158 million people and contributes 18.3 per cent to India’s GDP (2022-23), offering new solutions to ensure food security for India’s population, which is projected to reach 1.5 billion by 2030.
The Indian agtech ecosystem has grown from fewer than 50 startups in 2013 to over 3,000 today. More than 1,300 of these ventures leverage emerging technologies like AI, machine learning, and IoT, driven by increasing farmer awareness, rising rural internet penetration, and strong governmental support.
The government’s Digital Agriculture Mission, launched with an outlay of ₹2,817 crore, demonstrates this commitment. The mission’s cornerstone, AgriStack, aims to create a comprehensive farmer-centric Digital Public Infrastructure, targeting digital identities for 11 crore farmers over three years. Nineteen states have already signed MoUs with the Ministry of Agriculture, signaling a unified vision for agricultural modernization.
Transformative technologies in Indian farming
With agtech companies attracting over $700 million in funding in 2022 alone, the sector is witnessing unprecedented transformation through precision agriculture and smart farming solutions.
Drone technology, made more accessible through recent policy changes, is redefining agricultural operations from aerial planting and crop monitoring to nutrient application and pest management. Unlike the traditional methods, drones enable precise and timely applications that enhance crop growth and productivity.
Smart farming equipment has brought similar precision to ground operations. Automated tractors with GPS guidance systems optimize fuel usage and reduce operator fatigue, while ensuring accurate field coverage.
Moreover, IoT sensors provide real-time data on soil moisture, nutrient levels, and crop health, while AI algorithms convert this data into actionable insights. Satellite imagery and remote sensing technology complement these insights with comprehensive field analytics, enabling informed decision-making.
Meanwhile, automated irrigation systems merge weather data with soil moisture readings to deliver precise water and crop nutrition. These systems adapt to real-time weather changes and crop requirements, conserving resources while supporting healthy growth.
Perhaps most transformative has been the rise of mobile-based applications, which have democratized access to agricultural expertise and market information, offering features like crop disease identification, weather alerts, and market price information in vernacular languages.
Furthermore, digital innovation is attempting to dismantle long-standing barriers in agricultural finance. Where traditional banking failed to reach 50% of Indian farmers, platforms like SBI’s YONO Krishi app and emerging agrifintech solutions are creating more inclusive lending models.
Climate resilience and sustainability
As erratic weather patterns threaten crop yields across India, technology is emerging as a shield against climate uncertainty. Smart farming solutions are helping farmers maximize resource efficiency and minimise waste. In Telangana, the Saagu Baagu pilot project under the World Economic Forum’s AI4AI initiative has benefited over 7,000 chilli farmers through AI-based advisories and tech-driven soil testing.
The emergence of agrivoltaics in India also presents an innovative solution to both energy and agricultural challenges. These systems serve dual purposes: boosting crop yields and generating solar power.
Challenges and Implementation
Despite progress, significant challenges remain. The digital literacy gap in rural India poses a major hurdle, with many farmers lacking basic technological skills. Access to necessary software tools and expertise for data processing remains limited. The task of updating land records and verifying farmer data for AgriStack implementation is daunting, with only 43 million farmers’ data verified so far.
Data privacy concerns have emerged as a critical issue. The Digital Personal Data Protection Act 2023 is expected to provide necessary safeguards, but its effective implementation will be crucial for building farmer trust.
The path forward
The economic promise of agritech is clear – farmer incomes could rise by 25-35%, adding $95 billion to India’s economy. Having tapped just 1.5 per cent of its $24 billion market potential, the sector is poised for expansion.
Farmer Producer Organisations (FPOs) are proving to be the crucial bridge in this transformation, connecting farmers with technology and institutional buyers. Beyond facilitating adoption, they’re reshaping how farming communities engage with digital innovation. The government’s introduction of the Accelerator Fund for agritech startups adds financial muscle to this grassroots momentum.
Success ultimately depends on making technology accessible to India’s small and marginal farmers. As the sector evolves, the focus must remain on developing solutions that are affordable and aligned with local farming realities. The convergence of government support, private innovation, and community-led adoption offers a blueprint for transforming Indian agriculture into a more resilient, efficient, sustainable, and equitable sector.
The author is MD, Yara South Asia
