While the focus on start-ups and AgriTech in the budget would assist establish a digital ecosystem and technological inclusion in the agri sector, experts believe that the promotion of chemical-free natural farming in India will boost exports in the near future.
Experts estimate that using drones can boost agriculture’s GDP by 1-1.5 percent.
“Chemical-free natural farming is a significant news for both exports and national health,” said Rajat Wahi, partner at Deloitte India.
According to Ajay Kakra, Leader – Food and Agriculture, PwC India, the budget’s emphasis on start-ups and AgriTech will boost the creation of a digital ecosystem and technology inclusion in the agri sector.
Finance Minister Nirmala Sitharaman said in her Budget speech that the government will encourage chemical-free natural farming across the country to enhance agricultural productivity and income for farmers.
The Budget also said that NABARD will support a fund generated under the co-investment model to finance startups in agriculture and rural enterprise that are related to the farm product value chain.
The market for drones alone is projected to be worth between Rs 20 and Rs 30,000 crore. Even if only 10-15% of this is used in agriculture, it will have a significant impact, according to Arun Nagarajan, Director of Technology Consulting at EY.
“There are a number of small and medium businesses as well as established original equipment manufacturers,” Nagarajan said.