Technology Is Forging the Future Of India's Farming Practices, Here's How With the increasing rural Internet penetration and access to affordable tech, the shift to tech-backed agriculture is not an impossible feat anymore

By Ananda Verma

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Freepik

India is embracing technology and the Internet, thanks to its low tariff rates for data, access to budget-friendly smartphones, and government initiatives such as Digital India and BharatNet. The recent Nokia annual Mobile Broadband Index (MBiT) reported that 99 per cent of the country's data consumption is via 4G services, and around 16 crore smartphones were shipped in 2021; the highest so far.

So how are things looking in rural India?

The Internet phenomenon is also making a huge impression here with an estimated 20 per cent more Internet users compared to their urban counterparts, based on a study by Nielsen. The report further expands that there is still room for growth since only 40 per cent of the rural population are active users as of now.

Setting the stage for agritech

With technology and the Internet reaching more and more people in the country, agritech becomes a more viable reality as well. What exactly is agritech? In the most basic definition, it is the use of tech within the agriculture ecosystem to help improve, yield, quality of yield, and ultimately profitability for the farmers.

Why is agritech important? In terms of numbers, India has an economic potential of $50-65 billion through digital agriculture by the year 2025, according to a report by the ministry of electronics and information technology and McKinsey & Co. The implications are massive, and this could translate to a 23 per cent increase in the current value of agricultural produce in the country.

Horticulture in India

It will be an incomplete picture talking about agriculture without touching upon horticulture considering the value it brings to the country's economy. The sector produces about 320 million tonne of horticulture products in the country and contributes around 33 per cent of the total gross value added (GVA). Furthermore, an incredible 33 per cent of agricultural value is added by this segment alone coming from just 10 per cent of the land under horticulture.

The value of horticulture as an industry can't be understated. Just as how technology is helping agriculture, the same principles apply to horticulture.

The problem with the current system

As for where things stand, without technology in agriculture or horticulture, there are serious challenges ahead of us.

Impact on climate change: As the global population increases, so does the need for more arable land to grow more food. This is done by reclamation of forest lands which ultimately leads to fewer green cover, increased global temperatures and higher production of greenhouse gases.

Poor farm management: As the dependence on artificial fertilisers and pesticides grows, the fertility of the land diminishes over time. Overuse of these farm inputs greatly affects the health of the farm, leading to poorer harvest and even poorer quality of crops.

How technology in farming helps

Challenges are aplenty but with tech on our side, addressing these issues will be a lot easier. Technology tackles a lot of the pain points and makes farming a lot more streamlined and easy on the environment. It does so by:

Hyper local climate forecasts: Predicting local weather conditions greatly helps in preparing farmers against adverse climatic conditions and also planning out seeding and harvesting cycles.

Better yield at cheaper costs: An informed farmer is able to make scientifically-backed decisions in a timely manner which helps in achieving better quality products at a cheaper cost.

Environmentally friendly and sustainable: Thanks to the precision in farming processes, agritech helps farmers reduce wastage of water through smart irrigation and prevent wastage of farm inputs through Variable Rate Application (VRA). This helps in reducing costs and minimizing environmental impact.

Unlocking agritech in India

Currently, there are two key factors that are making a dent in the global food supply, the pandemic and the ongoing Russia war on Ukraine. In a country like India which has 58 per cent of its population employed in the agriculture sector, it is even more important to reinforce this industry and make it resilient against external forces. In addition to public-private partnerships (PPPs), the following measures can also expedite this transition:

Access to the farm-related data stack: It has been shown that farm-level advisories computed through datasets can improve productivity by 15 per cent. Data stacks like the Indian Digital Ecosystem of Agriculture (IDEA) and Agricultural Digital Infrastructure (ADI) can help farmers as well as policymakers in tackling the various challenges in this sector.

Accessibility: With over 1,500 agritech startups in the country, there is no lack of tech offerings available for farmers. But the problem lies in accessibility for the farmers in rural areas. Luckily, government initiatives such as the Digital Seva Portal (also known as Common Service Centers) are providing various e-governance and business services including agricultural services to rural India through their platforms.

Tie-ups with academic and research institutions: Building credibility around new technology is very important to win the trust of the farmers. This can be achieved by having tie-ups with established academic and research institutions that can test out new agritech solutions on a bigger scale and attest to their effectiveness.

Government support: Government initiatives such as the MDHI, IDEA, ADI and National Agriculture Market (eNAM) are also helping farmers access agricultural technology with enough room for support and incentives to help them transition as easily as possible. Boosting PPPs will also help in keeping the wheels of research turning and building a robust agritech ecosystem in the country.

The impact of the COVID-19 pandemic has been seen across industries and compounded by the ongoing war in Ukraine, the global food chain is under strain. Considering how reliant India is on its agriculture sector, it is very important to seek out sustainable and predictable options. With the increasing rural Internet penetration and access to affordable tech, the shift to tech-backed agriculture is not an impossible feat anymore. With enough startups making headway with innovation in the agritech space, the Indian agriculture sector is ready to embrace technology fully in the coming years.

Ananda Verma

Ananda Verma, Founder & CEO, Fasal

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

TIEA Expands R&D, Manufacturing With INR 22 Cr From Jamwant, Valour, Others

Funds to support manufacturing expansion, R&D, and reduce reliance on imports

Business News

IBM Replaced Hundreds of HR Workers With AI, According to Its CEO

IBM CEO Arvind Krishna said the move led to more hiring in other areas.

News and Trends

Apple's Security Flaws: Will They Dent Its Rising Success in India?

In Q1 FY25, Apple registered 23% year-on-year growth in India, its challenge now is sustaining this rise without compromising the trust that built its brand

News and Trends

How AI is Reshaping Work While Reinforcing the Need for Leadership, Empathy, and Creativity

The adoption of AI is not just a technological shift, it requires a cultural transformation—many organisations struggle with how to integrate AI tools while preserving human skills and creativity

News and Trends

Be Clinical, LUZO Raise Early-Stage Capital to Transform Skincare and Wellness Sectors

The following startups have announced their latest funding rounds.