Yojana Magazine April 2023 - 2 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

 Page 1


27 April 2023
gri-startups are poised to play a critical 
role in making India a knowledge-based 
and technology-driven economy. Due 
to a very unique agricultural ecosystem, 
there is vast potential (largely untapped) and ample 
opportunities for the development of agri-startups.  
India’s arable land area of 156.06 million hectares 
agri-StartupS: 
challengeS and 
opportunitieS
Agri-startups shall play a critical role in making India a  
knowledge-based and technology-driven economy. With the 
advent of the modern era, agriculture can no longer afford 
to remain in the throes of the past. Due to a very unique 
agricultural ecosystem, there is vast potential and ample 
opportunities for the development of agri-startups. 
(2019) is the world’s second-largest after the United 
States.  our country has an incredible diversity of 
climate and soil types (15 agro-climatic zones, 8 
major soil types), making it suitable for growing a 
wide range of field crops, fruits, vegetables, and so 
on. India is currently the world’s largest producer of 
milk, pulses, millets, and jute, as well as the world’s 
dr Jagdeep Saxena the author is a former Chief editor at the indian Council of Agricultural research, New delhi. email: jgdsaxena@gmail.com
A
Page 2


27 April 2023
gri-startups are poised to play a critical 
role in making India a knowledge-based 
and technology-driven economy. Due 
to a very unique agricultural ecosystem, 
there is vast potential (largely untapped) and ample 
opportunities for the development of agri-startups.  
India’s arable land area of 156.06 million hectares 
agri-StartupS: 
challengeS and 
opportunitieS
Agri-startups shall play a critical role in making India a  
knowledge-based and technology-driven economy. With the 
advent of the modern era, agriculture can no longer afford 
to remain in the throes of the past. Due to a very unique 
agricultural ecosystem, there is vast potential and ample 
opportunities for the development of agri-startups. 
(2019) is the world’s second-largest after the United 
States.  our country has an incredible diversity of 
climate and soil types (15 agro-climatic zones, 8 
major soil types), making it suitable for growing a 
wide range of field crops, fruits, vegetables, and so 
on. India is currently the world’s largest producer of 
milk, pulses, millets, and jute, as well as the world’s 
dr Jagdeep Saxena the author is a former Chief editor at the indian Council of Agricultural research, New delhi. email: jgdsaxena@gmail.com
A
28 April 2023
second largest producer of rice, wheat, and fruits and 
vegetables. India has recently emerged as a leading 
exporter of agricultural and livestock products. 
However, the agricultural sector is also facing several 
complex problems and challenges. The shrinking 
size of operational landholdings is a major source 
of concern, as small landholdings raise transaction 
costs, making it difficult to adapt several modern 
technologies. It also becomes difficult to use inputs 
and natural resources efficiently. Many farmers do 
not have easy access to timely information about 
soil, weather, markets, advisories, and other topics. 
In general, such issues result in higher costs of 
cultivation, wastage of resources, crop losses and a 
smaller scale of production. Agri-startups strive to 
provide solutions through innovations, technology 
interventions or business models specific to the 
need of farmers mostly on a real-time basis. As a 
result of the Government of India’s ongoing efforts, 
our country now has 3,000 agri-startups operating 
in various agricultural fields and allied sectors.
modes and models
In January 2016, the Government of India 
unveiled a 19-point ‘Startup India Action Plan, ’ which 
resulted in the implementation of several policy/
promotion initiatives aimed at creating a robust 
ecosystem for nurturing startups and innovations. 
This resulted in a massive increase in the creation 
of startups across almost every industry, including 
agriculture. In terms of geographical distribution, 
nearly 60% of agri-startups are based primarily 
in Tier I and II cities in a few states. According 
to an analysis of the Indian Startup Ecosystem, 
Bengaluru is one of the country’s established 
startup ecosystem hubs, followed by Mumbai 
and Delhi nCR. Agri-startups are further classified 
based on their focus areas, such as agri-tech, animal 
husbandry, precision farming, organic agriculture, 
mechanics, advisories, etc. Agri startups typically 
operate at one or more stages of the agricultural 
value chain, and on this basis have been classified 
into seven broad categories: providing output 
market linkages; facilitating input supply; enabling 
mechanisation and irrigation; offering a financial 
solution (credit and insurance); helping quality 
maintenance and traceability; post-harvest 
management; logistic services (warehousing and 
cold chains); and supporting animal husbandry 
activities. These startups provide solutions to 
farmers by utilising various types of innovations 
and technologies. They create products and/or 
services to improve efficiency at various stages 
of the value chain, such as infrastructure farm 
automation, precision agriculture, input delivery, 
advisory market linkages, and so on. In recent years, 
some notable business models in the agricultural 
space have emerged, including the ‘farm to fork’ 
supply chain model, IoT (Internet of Things) or 
big data-led innovation model, and the upstream 
market place model. More of these agri-startups 
are utilising cutting-edge technologies to improve 
the efficiency of agriculture and agri-industry. 
In general, emerging technologies such as data 
digitisation, SaaS (software as a service), machine 
learning, data analytics, artificial intelligence (AF), 
IoT, satellite data, drones, and block chain are 
employed. Agri-startups are mainly formed to 
solve complex problems in the value chain through 
innovations or technological interventions. The 
founders have their own unique ideas to address 
issues/problems in a cost-effective, technically 
feasible and sustainable manner. Startups progress 
from the idea to the validation stage where a 
minimum value product (MVP) is developed to 
solve the identified problem. Following successful 
In January 2016, the 
Government of India unveiled a 
19-point 'Startup India Action 
Plan,' which resulted in the 
implementation of several 
policy/promotion initiatives 
aimed at creating a robust 
ecosystem for nurturing 
startups and innovations. This 
resulted in a massive increase 
in the creation of startups 
across almost every industry, 
including agriculture. In terms 
of geographical distribution, 
nearly 60% of agri-startups are 
based primarily in Tier I and II 
cities in a few states.
Page 3


27 April 2023
gri-startups are poised to play a critical 
role in making India a knowledge-based 
and technology-driven economy. Due 
to a very unique agricultural ecosystem, 
there is vast potential (largely untapped) and ample 
opportunities for the development of agri-startups.  
India’s arable land area of 156.06 million hectares 
agri-StartupS: 
challengeS and 
opportunitieS
Agri-startups shall play a critical role in making India a  
knowledge-based and technology-driven economy. With the 
advent of the modern era, agriculture can no longer afford 
to remain in the throes of the past. Due to a very unique 
agricultural ecosystem, there is vast potential and ample 
opportunities for the development of agri-startups. 
(2019) is the world’s second-largest after the United 
States.  our country has an incredible diversity of 
climate and soil types (15 agro-climatic zones, 8 
major soil types), making it suitable for growing a 
wide range of field crops, fruits, vegetables, and so 
on. India is currently the world’s largest producer of 
milk, pulses, millets, and jute, as well as the world’s 
dr Jagdeep Saxena the author is a former Chief editor at the indian Council of Agricultural research, New delhi. email: jgdsaxena@gmail.com
A
28 April 2023
second largest producer of rice, wheat, and fruits and 
vegetables. India has recently emerged as a leading 
exporter of agricultural and livestock products. 
However, the agricultural sector is also facing several 
complex problems and challenges. The shrinking 
size of operational landholdings is a major source 
of concern, as small landholdings raise transaction 
costs, making it difficult to adapt several modern 
technologies. It also becomes difficult to use inputs 
and natural resources efficiently. Many farmers do 
not have easy access to timely information about 
soil, weather, markets, advisories, and other topics. 
In general, such issues result in higher costs of 
cultivation, wastage of resources, crop losses and a 
smaller scale of production. Agri-startups strive to 
provide solutions through innovations, technology 
interventions or business models specific to the 
need of farmers mostly on a real-time basis. As a 
result of the Government of India’s ongoing efforts, 
our country now has 3,000 agri-startups operating 
in various agricultural fields and allied sectors.
modes and models
In January 2016, the Government of India 
unveiled a 19-point ‘Startup India Action Plan, ’ which 
resulted in the implementation of several policy/
promotion initiatives aimed at creating a robust 
ecosystem for nurturing startups and innovations. 
This resulted in a massive increase in the creation 
of startups across almost every industry, including 
agriculture. In terms of geographical distribution, 
nearly 60% of agri-startups are based primarily 
in Tier I and II cities in a few states. According 
to an analysis of the Indian Startup Ecosystem, 
Bengaluru is one of the country’s established 
startup ecosystem hubs, followed by Mumbai 
and Delhi nCR. Agri-startups are further classified 
based on their focus areas, such as agri-tech, animal 
husbandry, precision farming, organic agriculture, 
mechanics, advisories, etc. Agri startups typically 
operate at one or more stages of the agricultural 
value chain, and on this basis have been classified 
into seven broad categories: providing output 
market linkages; facilitating input supply; enabling 
mechanisation and irrigation; offering a financial 
solution (credit and insurance); helping quality 
maintenance and traceability; post-harvest 
management; logistic services (warehousing and 
cold chains); and supporting animal husbandry 
activities. These startups provide solutions to 
farmers by utilising various types of innovations 
and technologies. They create products and/or 
services to improve efficiency at various stages 
of the value chain, such as infrastructure farm 
automation, precision agriculture, input delivery, 
advisory market linkages, and so on. In recent years, 
some notable business models in the agricultural 
space have emerged, including the ‘farm to fork’ 
supply chain model, IoT (Internet of Things) or 
big data-led innovation model, and the upstream 
market place model. More of these agri-startups 
are utilising cutting-edge technologies to improve 
the efficiency of agriculture and agri-industry. 
In general, emerging technologies such as data 
digitisation, SaaS (software as a service), machine 
learning, data analytics, artificial intelligence (AF), 
IoT, satellite data, drones, and block chain are 
employed. Agri-startups are mainly formed to 
solve complex problems in the value chain through 
innovations or technological interventions. The 
founders have their own unique ideas to address 
issues/problems in a cost-effective, technically 
feasible and sustainable manner. Startups progress 
from the idea to the validation stage where a 
minimum value product (MVP) is developed to 
solve the identified problem. Following successful 
In January 2016, the 
Government of India unveiled a 
19-point 'Startup India Action 
Plan,' which resulted in the 
implementation of several 
policy/promotion initiatives 
aimed at creating a robust 
ecosystem for nurturing 
startups and innovations. This 
resulted in a massive increase 
in the creation of startups 
across almost every industry, 
including agriculture. In terms 
of geographical distribution, 
nearly 60% of agri-startups are 
based primarily in Tier I and II 
cities in a few states.
29 April 2023
validation, the product gains traction, 
and startups may acquire customers and 
generate revenue.
When a startup starts making money, it 
may enter the scaling stage. However, not 
all startups reach the scaling stage, many 
agri-startups remain in the early stages 
for an extended period of time before 
failing and disappearing. Scaling up in 
agri-startups is especially difficult because 
it necessitates field testing/applications 
in which many external factors exert their 
own unpredictable actions. As a result, 
agri-startups require the most incubation 
support/handholding and seed funding.
Policies and Promotions
To stand on their own, a new agri-
startup requires assistance from a variety of 
organisations, including funding institutions, 
support organisations (incubators, 
accelerators, and so on). The Government of 
India has launched several initiatives to facilitate and 
promote agri-startups, with the goal of creating a 
robust ecosystem for the creation and development 
of agri-startups. The Agri-Business Incubator (ABIs) 
Centres were established in various parts of the 
country, primarily in R&D institutions, in 2015-16. 
ABIs identify and mobilise emerging entrepreneurs, 
facilitating their growth through a variety of 
services including shared facilities (workspaces, 
infrastructure, etc.) and equipment, business 
development, technology, finance, mentoring, 
and networking. The incubation process can last 
anywhere from 6 to 36 months, with incubatees 
expected to validate their business models and 
begin generating significant growth in revenues 
and customers/clients at the end. In India, there are 
over 100 agri-focused incubators, most of which are 
housed in academic and research institutions such 
as the Indian Council of Agricultural Research (ICAR) 
and agricultural universities. Startup India, the Atal 
Innovation Mission, the Department of Science and 
Technology (DST), and the Ministry of Agriculture 
and Farmers Welfare also support these incubators.
In 2019-20, the Department of Agriculture, 
Cooperation, and Farmers Welfare has added 
a new component called the ‘Innovation and  
Agri-Entrepreneurship Department’ to its flagship 
scheme, the ‘Rashtriya Krishi Vikas Yojana’  
(RKVY-RAFTAAR). Under this programme, a selected 
startup is eligible for a maximum financial assistance 
of Rs. 5 lakh at idea/ pre-seed stage and a maximum 
financial assistance of Rs. 25 lakh at the seed stage. 
In this regard, five knowledge partners and 24 ABIs 
have been appointed to advise on the program’s 
smooth and efficient execution. As knowledge 
partners, MAnAGE, Hyderabad; nAM, Jaipur; IARI 
(Pusa), new Delhi; UAS, Dharwad; and AAU, Jorhat 
have been identified, while ABIs are located in ICAR 
institutes, Agricultural Universities, IITs, and IIMs 
across the country. Incubatees are chosen through 
a national media publicity campaign, followed 
by a rigorous selection process. over 1,100 agri-
startups have been selected and supported by 
the programme so far for projects in agriculture 
and allied sectors such as agro-processing, food 
technology, AI, IoT, precision agriculture, digital 
farming, and so on. To further support and 
promote agri-startups, the Ministry of Agriculture 
and Farmers Welfare hosts an annual event called 
‘Agri-Hackathon,’ where agri-startups can provide 
viable and innovative solutions to identified 
challenges and problems. India’s young minds, 
creative startups, and astute innovators present 
new technology-based solutions on to the major 
challenges that Indian agriculture faces today. 
After a rigorous process, a jury of experts from 
Agriculture, Technology, and Marketing selects the 
winners. Winning innovations are given first priority 
for incubation support, including attractive funding 
Page 4


27 April 2023
gri-startups are poised to play a critical 
role in making India a knowledge-based 
and technology-driven economy. Due 
to a very unique agricultural ecosystem, 
there is vast potential (largely untapped) and ample 
opportunities for the development of agri-startups.  
India’s arable land area of 156.06 million hectares 
agri-StartupS: 
challengeS and 
opportunitieS
Agri-startups shall play a critical role in making India a  
knowledge-based and technology-driven economy. With the 
advent of the modern era, agriculture can no longer afford 
to remain in the throes of the past. Due to a very unique 
agricultural ecosystem, there is vast potential and ample 
opportunities for the development of agri-startups. 
(2019) is the world’s second-largest after the United 
States.  our country has an incredible diversity of 
climate and soil types (15 agro-climatic zones, 8 
major soil types), making it suitable for growing a 
wide range of field crops, fruits, vegetables, and so 
on. India is currently the world’s largest producer of 
milk, pulses, millets, and jute, as well as the world’s 
dr Jagdeep Saxena the author is a former Chief editor at the indian Council of Agricultural research, New delhi. email: jgdsaxena@gmail.com
A
28 April 2023
second largest producer of rice, wheat, and fruits and 
vegetables. India has recently emerged as a leading 
exporter of agricultural and livestock products. 
However, the agricultural sector is also facing several 
complex problems and challenges. The shrinking 
size of operational landholdings is a major source 
of concern, as small landholdings raise transaction 
costs, making it difficult to adapt several modern 
technologies. It also becomes difficult to use inputs 
and natural resources efficiently. Many farmers do 
not have easy access to timely information about 
soil, weather, markets, advisories, and other topics. 
In general, such issues result in higher costs of 
cultivation, wastage of resources, crop losses and a 
smaller scale of production. Agri-startups strive to 
provide solutions through innovations, technology 
interventions or business models specific to the 
need of farmers mostly on a real-time basis. As a 
result of the Government of India’s ongoing efforts, 
our country now has 3,000 agri-startups operating 
in various agricultural fields and allied sectors.
modes and models
In January 2016, the Government of India 
unveiled a 19-point ‘Startup India Action Plan, ’ which 
resulted in the implementation of several policy/
promotion initiatives aimed at creating a robust 
ecosystem for nurturing startups and innovations. 
This resulted in a massive increase in the creation 
of startups across almost every industry, including 
agriculture. In terms of geographical distribution, 
nearly 60% of agri-startups are based primarily 
in Tier I and II cities in a few states. According 
to an analysis of the Indian Startup Ecosystem, 
Bengaluru is one of the country’s established 
startup ecosystem hubs, followed by Mumbai 
and Delhi nCR. Agri-startups are further classified 
based on their focus areas, such as agri-tech, animal 
husbandry, precision farming, organic agriculture, 
mechanics, advisories, etc. Agri startups typically 
operate at one or more stages of the agricultural 
value chain, and on this basis have been classified 
into seven broad categories: providing output 
market linkages; facilitating input supply; enabling 
mechanisation and irrigation; offering a financial 
solution (credit and insurance); helping quality 
maintenance and traceability; post-harvest 
management; logistic services (warehousing and 
cold chains); and supporting animal husbandry 
activities. These startups provide solutions to 
farmers by utilising various types of innovations 
and technologies. They create products and/or 
services to improve efficiency at various stages 
of the value chain, such as infrastructure farm 
automation, precision agriculture, input delivery, 
advisory market linkages, and so on. In recent years, 
some notable business models in the agricultural 
space have emerged, including the ‘farm to fork’ 
supply chain model, IoT (Internet of Things) or 
big data-led innovation model, and the upstream 
market place model. More of these agri-startups 
are utilising cutting-edge technologies to improve 
the efficiency of agriculture and agri-industry. 
In general, emerging technologies such as data 
digitisation, SaaS (software as a service), machine 
learning, data analytics, artificial intelligence (AF), 
IoT, satellite data, drones, and block chain are 
employed. Agri-startups are mainly formed to 
solve complex problems in the value chain through 
innovations or technological interventions. The 
founders have their own unique ideas to address 
issues/problems in a cost-effective, technically 
feasible and sustainable manner. Startups progress 
from the idea to the validation stage where a 
minimum value product (MVP) is developed to 
solve the identified problem. Following successful 
In January 2016, the 
Government of India unveiled a 
19-point 'Startup India Action 
Plan,' which resulted in the 
implementation of several 
policy/promotion initiatives 
aimed at creating a robust 
ecosystem for nurturing 
startups and innovations. This 
resulted in a massive increase 
in the creation of startups 
across almost every industry, 
including agriculture. In terms 
of geographical distribution, 
nearly 60% of agri-startups are 
based primarily in Tier I and II 
cities in a few states.
29 April 2023
validation, the product gains traction, 
and startups may acquire customers and 
generate revenue.
When a startup starts making money, it 
may enter the scaling stage. However, not 
all startups reach the scaling stage, many 
agri-startups remain in the early stages 
for an extended period of time before 
failing and disappearing. Scaling up in 
agri-startups is especially difficult because 
it necessitates field testing/applications 
in which many external factors exert their 
own unpredictable actions. As a result, 
agri-startups require the most incubation 
support/handholding and seed funding.
Policies and Promotions
To stand on their own, a new agri-
startup requires assistance from a variety of 
organisations, including funding institutions, 
support organisations (incubators, 
accelerators, and so on). The Government of 
India has launched several initiatives to facilitate and 
promote agri-startups, with the goal of creating a 
robust ecosystem for the creation and development 
of agri-startups. The Agri-Business Incubator (ABIs) 
Centres were established in various parts of the 
country, primarily in R&D institutions, in 2015-16. 
ABIs identify and mobilise emerging entrepreneurs, 
facilitating their growth through a variety of 
services including shared facilities (workspaces, 
infrastructure, etc.) and equipment, business 
development, technology, finance, mentoring, 
and networking. The incubation process can last 
anywhere from 6 to 36 months, with incubatees 
expected to validate their business models and 
begin generating significant growth in revenues 
and customers/clients at the end. In India, there are 
over 100 agri-focused incubators, most of which are 
housed in academic and research institutions such 
as the Indian Council of Agricultural Research (ICAR) 
and agricultural universities. Startup India, the Atal 
Innovation Mission, the Department of Science and 
Technology (DST), and the Ministry of Agriculture 
and Farmers Welfare also support these incubators.
In 2019-20, the Department of Agriculture, 
Cooperation, and Farmers Welfare has added 
a new component called the ‘Innovation and  
Agri-Entrepreneurship Department’ to its flagship 
scheme, the ‘Rashtriya Krishi Vikas Yojana’  
(RKVY-RAFTAAR). Under this programme, a selected 
startup is eligible for a maximum financial assistance 
of Rs. 5 lakh at idea/ pre-seed stage and a maximum 
financial assistance of Rs. 25 lakh at the seed stage. 
In this regard, five knowledge partners and 24 ABIs 
have been appointed to advise on the program’s 
smooth and efficient execution. As knowledge 
partners, MAnAGE, Hyderabad; nAM, Jaipur; IARI 
(Pusa), new Delhi; UAS, Dharwad; and AAU, Jorhat 
have been identified, while ABIs are located in ICAR 
institutes, Agricultural Universities, IITs, and IIMs 
across the country. Incubatees are chosen through 
a national media publicity campaign, followed 
by a rigorous selection process. over 1,100 agri-
startups have been selected and supported by 
the programme so far for projects in agriculture 
and allied sectors such as agro-processing, food 
technology, AI, IoT, precision agriculture, digital 
farming, and so on. To further support and 
promote agri-startups, the Ministry of Agriculture 
and Farmers Welfare hosts an annual event called 
‘Agri-Hackathon,’ where agri-startups can provide 
viable and innovative solutions to identified 
challenges and problems. India’s young minds, 
creative startups, and astute innovators present 
new technology-based solutions on to the major 
challenges that Indian agriculture faces today. 
After a rigorous process, a jury of experts from 
Agriculture, Technology, and Marketing selects the 
winners. Winning innovations are given first priority 
for incubation support, including attractive funding 
30 April 2023
at the pre-seed and seed stages. Furthermore, 
promising innovations in respective focus areas are 
awarded cash prizes. Following the success of agri-
hackathons, similar events are now being planned 
in the animal husbandry, dairy, and food processing 
industries.
As the apex body of agricultural R&D, ICAR has 
taken the lead by establishing 50 Agri-Business 
incubators in institutes across the country. ICAR-
ABIs, which were launched under the national 
Agriculture Innovation Fund project (2016-17), 
provide technical support and incubation services 
to startups providing solutions in various fields of 
agriculture and allied sectors. Selected startups 
using digital techniques are also supported by 
ICAR-ABIs because they benefit farmers by solving 
farm economy problems and increasing farm 
sector profitability and efficiency. These centres 
provide an effective platform for fostering the 
growth of sustainable business ventures, as well 
as service supports such as R&D linkages, business 
planning, and advice/consultancy on management, 
marketing, technical, and financial issues.  
ICAR-ABIs market and disseminate their proprietary 
technologies for commercialization, as well as 
organise awareness campaigns among potential 
entrepreneurs.
The Department of Science and Technology 
has set up 25 Technology Innovation Hubs (TIH) in 
premier institutes of national importance across 
the country. Three of these are involved in the 
applications of IoT and AI in Agriculture with the 
objective of carrying out research translation and 
technology development in specified areas. IIT 
Ropar’s TIH is working on IoT-based devices and 
sensors that will be used in saffron production 
and supply across India. The TIH foundation at 
IIT Kharagpur is working on AI-based precision 
agriculture technologies as well as predictive 
and forecasting models for crop and soil health 
monitoring. The TIH foundation at IIT-Bombay is 
primarily concerned with aerial robotics for soil 
parameter monitoring, drone imaging, and drone 
spraying. To make intelligent decisions based on 
ambient farm conditions, a predictive data analysis 
model is being developed. Emerging startups have 
shown a strong interest in such technologies in order 
to build a business model around them in order to 
provide services to farmers or groups of farmers. Since 
2016, the DST has been implementing an umbrella 
programme called nIDHI (national Initiative for 
Developing and Harnessing Innovations) to promote  
S&T-based entrepreneurship and startup 
ecosystems in the country. nIDHI operates through 
its various components which are designed 
to support ideators and innovators from the 
beginning of their journey and link them to 
the entire market value chain. For example,  
nIDHI-PRAYAS provides technical and financial 
support to innovators and startups from the idea 
stage to the prototype stage; nIDHI-TBI nurtures 
startups into successful enterprises; nIDHI-SSP 
provides early-stage funding; and nIDHI creates 
CoEs a world-class facility to help startups go 
global.
nIDHI supports and promotes 36 agriculture-
based TBIs of which seven are located in ICAR- 
Institutes and Agricultural Universities. The 
Government of India launched an ambitious Atal 
Innovation Mission last year, with the goal of 
establishing 10,000 Atal Tinkering Labs, 101 Atal 
Incubation Centers, 50 Atal Community Innovation 
Centres, and supporting 200 startups through the 
Atal new India Challenges. Startup India and Standup 
India programmes provide funding and incentives 
to eligible startups, which include agricultural 
enterprises. Handholding and incubation facilities 
help startups in their early stages. 
To stand on their own, a 
new agri-startup requires 
assistance from a variety 
of organisations, including 
funding institutions and 
support organisations. The 
Government of India has 
launched several initiatives 
to facilitate and promote 
agri-startups, with the 
goal of creating a robust 
ecosystem for the creation 
and development of  
agri-startups. 
Page 5


27 April 2023
gri-startups are poised to play a critical 
role in making India a knowledge-based 
and technology-driven economy. Due 
to a very unique agricultural ecosystem, 
there is vast potential (largely untapped) and ample 
opportunities for the development of agri-startups.  
India’s arable land area of 156.06 million hectares 
agri-StartupS: 
challengeS and 
opportunitieS
Agri-startups shall play a critical role in making India a  
knowledge-based and technology-driven economy. With the 
advent of the modern era, agriculture can no longer afford 
to remain in the throes of the past. Due to a very unique 
agricultural ecosystem, there is vast potential and ample 
opportunities for the development of agri-startups. 
(2019) is the world’s second-largest after the United 
States.  our country has an incredible diversity of 
climate and soil types (15 agro-climatic zones, 8 
major soil types), making it suitable for growing a 
wide range of field crops, fruits, vegetables, and so 
on. India is currently the world’s largest producer of 
milk, pulses, millets, and jute, as well as the world’s 
dr Jagdeep Saxena the author is a former Chief editor at the indian Council of Agricultural research, New delhi. email: jgdsaxena@gmail.com
A
28 April 2023
second largest producer of rice, wheat, and fruits and 
vegetables. India has recently emerged as a leading 
exporter of agricultural and livestock products. 
However, the agricultural sector is also facing several 
complex problems and challenges. The shrinking 
size of operational landholdings is a major source 
of concern, as small landholdings raise transaction 
costs, making it difficult to adapt several modern 
technologies. It also becomes difficult to use inputs 
and natural resources efficiently. Many farmers do 
not have easy access to timely information about 
soil, weather, markets, advisories, and other topics. 
In general, such issues result in higher costs of 
cultivation, wastage of resources, crop losses and a 
smaller scale of production. Agri-startups strive to 
provide solutions through innovations, technology 
interventions or business models specific to the 
need of farmers mostly on a real-time basis. As a 
result of the Government of India’s ongoing efforts, 
our country now has 3,000 agri-startups operating 
in various agricultural fields and allied sectors.
modes and models
In January 2016, the Government of India 
unveiled a 19-point ‘Startup India Action Plan, ’ which 
resulted in the implementation of several policy/
promotion initiatives aimed at creating a robust 
ecosystem for nurturing startups and innovations. 
This resulted in a massive increase in the creation 
of startups across almost every industry, including 
agriculture. In terms of geographical distribution, 
nearly 60% of agri-startups are based primarily 
in Tier I and II cities in a few states. According 
to an analysis of the Indian Startup Ecosystem, 
Bengaluru is one of the country’s established 
startup ecosystem hubs, followed by Mumbai 
and Delhi nCR. Agri-startups are further classified 
based on their focus areas, such as agri-tech, animal 
husbandry, precision farming, organic agriculture, 
mechanics, advisories, etc. Agri startups typically 
operate at one or more stages of the agricultural 
value chain, and on this basis have been classified 
into seven broad categories: providing output 
market linkages; facilitating input supply; enabling 
mechanisation and irrigation; offering a financial 
solution (credit and insurance); helping quality 
maintenance and traceability; post-harvest 
management; logistic services (warehousing and 
cold chains); and supporting animal husbandry 
activities. These startups provide solutions to 
farmers by utilising various types of innovations 
and technologies. They create products and/or 
services to improve efficiency at various stages 
of the value chain, such as infrastructure farm 
automation, precision agriculture, input delivery, 
advisory market linkages, and so on. In recent years, 
some notable business models in the agricultural 
space have emerged, including the ‘farm to fork’ 
supply chain model, IoT (Internet of Things) or 
big data-led innovation model, and the upstream 
market place model. More of these agri-startups 
are utilising cutting-edge technologies to improve 
the efficiency of agriculture and agri-industry. 
In general, emerging technologies such as data 
digitisation, SaaS (software as a service), machine 
learning, data analytics, artificial intelligence (AF), 
IoT, satellite data, drones, and block chain are 
employed. Agri-startups are mainly formed to 
solve complex problems in the value chain through 
innovations or technological interventions. The 
founders have their own unique ideas to address 
issues/problems in a cost-effective, technically 
feasible and sustainable manner. Startups progress 
from the idea to the validation stage where a 
minimum value product (MVP) is developed to 
solve the identified problem. Following successful 
In January 2016, the 
Government of India unveiled a 
19-point 'Startup India Action 
Plan,' which resulted in the 
implementation of several 
policy/promotion initiatives 
aimed at creating a robust 
ecosystem for nurturing 
startups and innovations. This 
resulted in a massive increase 
in the creation of startups 
across almost every industry, 
including agriculture. In terms 
of geographical distribution, 
nearly 60% of agri-startups are 
based primarily in Tier I and II 
cities in a few states.
29 April 2023
validation, the product gains traction, 
and startups may acquire customers and 
generate revenue.
When a startup starts making money, it 
may enter the scaling stage. However, not 
all startups reach the scaling stage, many 
agri-startups remain in the early stages 
for an extended period of time before 
failing and disappearing. Scaling up in 
agri-startups is especially difficult because 
it necessitates field testing/applications 
in which many external factors exert their 
own unpredictable actions. As a result, 
agri-startups require the most incubation 
support/handholding and seed funding.
Policies and Promotions
To stand on their own, a new agri-
startup requires assistance from a variety of 
organisations, including funding institutions, 
support organisations (incubators, 
accelerators, and so on). The Government of 
India has launched several initiatives to facilitate and 
promote agri-startups, with the goal of creating a 
robust ecosystem for the creation and development 
of agri-startups. The Agri-Business Incubator (ABIs) 
Centres were established in various parts of the 
country, primarily in R&D institutions, in 2015-16. 
ABIs identify and mobilise emerging entrepreneurs, 
facilitating their growth through a variety of 
services including shared facilities (workspaces, 
infrastructure, etc.) and equipment, business 
development, technology, finance, mentoring, 
and networking. The incubation process can last 
anywhere from 6 to 36 months, with incubatees 
expected to validate their business models and 
begin generating significant growth in revenues 
and customers/clients at the end. In India, there are 
over 100 agri-focused incubators, most of which are 
housed in academic and research institutions such 
as the Indian Council of Agricultural Research (ICAR) 
and agricultural universities. Startup India, the Atal 
Innovation Mission, the Department of Science and 
Technology (DST), and the Ministry of Agriculture 
and Farmers Welfare also support these incubators.
In 2019-20, the Department of Agriculture, 
Cooperation, and Farmers Welfare has added 
a new component called the ‘Innovation and  
Agri-Entrepreneurship Department’ to its flagship 
scheme, the ‘Rashtriya Krishi Vikas Yojana’  
(RKVY-RAFTAAR). Under this programme, a selected 
startup is eligible for a maximum financial assistance 
of Rs. 5 lakh at idea/ pre-seed stage and a maximum 
financial assistance of Rs. 25 lakh at the seed stage. 
In this regard, five knowledge partners and 24 ABIs 
have been appointed to advise on the program’s 
smooth and efficient execution. As knowledge 
partners, MAnAGE, Hyderabad; nAM, Jaipur; IARI 
(Pusa), new Delhi; UAS, Dharwad; and AAU, Jorhat 
have been identified, while ABIs are located in ICAR 
institutes, Agricultural Universities, IITs, and IIMs 
across the country. Incubatees are chosen through 
a national media publicity campaign, followed 
by a rigorous selection process. over 1,100 agri-
startups have been selected and supported by 
the programme so far for projects in agriculture 
and allied sectors such as agro-processing, food 
technology, AI, IoT, precision agriculture, digital 
farming, and so on. To further support and 
promote agri-startups, the Ministry of Agriculture 
and Farmers Welfare hosts an annual event called 
‘Agri-Hackathon,’ where agri-startups can provide 
viable and innovative solutions to identified 
challenges and problems. India’s young minds, 
creative startups, and astute innovators present 
new technology-based solutions on to the major 
challenges that Indian agriculture faces today. 
After a rigorous process, a jury of experts from 
Agriculture, Technology, and Marketing selects the 
winners. Winning innovations are given first priority 
for incubation support, including attractive funding 
30 April 2023
at the pre-seed and seed stages. Furthermore, 
promising innovations in respective focus areas are 
awarded cash prizes. Following the success of agri-
hackathons, similar events are now being planned 
in the animal husbandry, dairy, and food processing 
industries.
As the apex body of agricultural R&D, ICAR has 
taken the lead by establishing 50 Agri-Business 
incubators in institutes across the country. ICAR-
ABIs, which were launched under the national 
Agriculture Innovation Fund project (2016-17), 
provide technical support and incubation services 
to startups providing solutions in various fields of 
agriculture and allied sectors. Selected startups 
using digital techniques are also supported by 
ICAR-ABIs because they benefit farmers by solving 
farm economy problems and increasing farm 
sector profitability and efficiency. These centres 
provide an effective platform for fostering the 
growth of sustainable business ventures, as well 
as service supports such as R&D linkages, business 
planning, and advice/consultancy on management, 
marketing, technical, and financial issues.  
ICAR-ABIs market and disseminate their proprietary 
technologies for commercialization, as well as 
organise awareness campaigns among potential 
entrepreneurs.
The Department of Science and Technology 
has set up 25 Technology Innovation Hubs (TIH) in 
premier institutes of national importance across 
the country. Three of these are involved in the 
applications of IoT and AI in Agriculture with the 
objective of carrying out research translation and 
technology development in specified areas. IIT 
Ropar’s TIH is working on IoT-based devices and 
sensors that will be used in saffron production 
and supply across India. The TIH foundation at 
IIT Kharagpur is working on AI-based precision 
agriculture technologies as well as predictive 
and forecasting models for crop and soil health 
monitoring. The TIH foundation at IIT-Bombay is 
primarily concerned with aerial robotics for soil 
parameter monitoring, drone imaging, and drone 
spraying. To make intelligent decisions based on 
ambient farm conditions, a predictive data analysis 
model is being developed. Emerging startups have 
shown a strong interest in such technologies in order 
to build a business model around them in order to 
provide services to farmers or groups of farmers. Since 
2016, the DST has been implementing an umbrella 
programme called nIDHI (national Initiative for 
Developing and Harnessing Innovations) to promote  
S&T-based entrepreneurship and startup 
ecosystems in the country. nIDHI operates through 
its various components which are designed 
to support ideators and innovators from the 
beginning of their journey and link them to 
the entire market value chain. For example,  
nIDHI-PRAYAS provides technical and financial 
support to innovators and startups from the idea 
stage to the prototype stage; nIDHI-TBI nurtures 
startups into successful enterprises; nIDHI-SSP 
provides early-stage funding; and nIDHI creates 
CoEs a world-class facility to help startups go 
global.
nIDHI supports and promotes 36 agriculture-
based TBIs of which seven are located in ICAR- 
Institutes and Agricultural Universities. The 
Government of India launched an ambitious Atal 
Innovation Mission last year, with the goal of 
establishing 10,000 Atal Tinkering Labs, 101 Atal 
Incubation Centers, 50 Atal Community Innovation 
Centres, and supporting 200 startups through the 
Atal new India Challenges. Startup India and Standup 
India programmes provide funding and incentives 
to eligible startups, which include agricultural 
enterprises. Handholding and incubation facilities 
help startups in their early stages. 
To stand on their own, a 
new agri-startup requires 
assistance from a variety 
of organisations, including 
funding institutions and 
support organisations. The 
Government of India has 
launched several initiatives 
to facilitate and promote 
agri-startups, with the 
goal of creating a robust 
ecosystem for the creation 
and development of  
agri-startups. 
31 April 2023
intentions and investments
The year 2023 has been designated as the 
International Year of Millets, providing an excellent 
opportunity for Indian entrepreneurs to enter the 
global market. More than 500 startups in India 
are working in the millets value chain, of which 
250 startups have been incubated by the ICAR- 
Indian Institute of Millets Research under RKVY-
RAFTAAR. To promote millet consumption, the 
Government is assisting startup entrepreneurs 
with recipes and value-added products. More 
than 66 startups have been given more than  
Rs. 6.25 crore, while 25 startups have been approved 
for additional funding.
Engagement of agri-tech startups and 
companies in public-private partnerships was 
announced for the Union Budget 2022-23 to deliver 
the latest technology education to farmers and aid 
in implementation. o ther policies and government-
sponsored funds for agri-tech startups in drones 
and farming as a service were also announced. 
nABARD is facilitating a fund with blended capital 
raised through a co-investment model to finance 
agri-tech startups and rural farming enterprises. 
This scheme provides funding to startups that 
support food producer organisations, farm rental 
services, and technology incorporation. The 
Government announced an agricultural-focused 
accelerator fund in the current Budget (2023-24) to 
encourage agri-tech startups in rural areas of the 
country. The Fund is aimed at building innovative 
and effective agri-tech solutions for farmers so as 
to improve access to market linkages and yields. 
It will also introduce cutting-edge technology 
to transform agricultural practices and boost 
productivity and profitability. According to the 
Economic Survey (2022-23), agri-tech startups 
have raised approximately Rs. 6600 crore from 
private equity investors over the last four years, 
representing a growth rate of more than 50% per 
year. The national Academy of Agriculture Sciences 
in new Delhi has recommended that each research 
and education organisation establish a Business 
Incubation Center to promote agripreneurship. 
To bring synergies, an agri-incubator monitoring 
cell could be established. This will also aid in the 
exchange of ideas and the sharing of critical 
resources among incubators. Agri-startups are 
poised to become a significant growth engine of 
the Indian economy and to realise the dream of 
Atmanirbhar Bharat.                                                        ?