The rural ecosystem in India is transitioning from ‘traditional agriculture to new farming models, advanced agri-tech services, and new food products.’ During the period 2017-2020, the country saw significant investment in the sector, amounting to approximately Rs 6600 crore, representing a growth rate of more than 50% per year. Significant domestic and international investments are being pumped into the sector to improve efficiency and access to credit, according to a report titled ‘Innovation in India’s Rural Economy: Disruptive Business Models are Stimulating Inclusive Growth in Agriculture and Rural Finance’ by Bain & Company and the Confederation of Indian Industry (CII). Several global technology behemoths see this as a new growth opportunity and are investing in innovative crop health monitoring and yield estimation solutions.
Parijat Jain, Partner & Leader of Bain’s Agri-business practice in India, said, “In the last six years, several start-ups have emerged to reduce systemic inefficiencies among inputs and marketplaces, precision farming, processing and storage.”
The Indian agriculture sector has been growing steadily at a CAGR of 11 per cent since 2015, and it contributes to approximately 37 per cent of the total rural GDP.
India’s rural ecosystem is evolving from ‘traditional agriculture to new farming models, advanced agri-tech services, and new food products.’ The country has witnessed significant investments into the sector, to the tune of approximately Rs 6600 crore during 2017- 2020, a growth of more than 50 per cent per annum. According to a report by Bain & Company and Confederation of Indian Industry (CII) titled, ‘Innovation in India’s Rural Economy: Disruptive Business Models are Stimulating Inclusive Growth in Agriculture and Rural Finance’, significant domestic and international investments are being pumped into the sector to improve efficiency and access to credit. Several global tech giants are seeing this space as a new growth opportunity and are investing in innovative solutions for crop health monitoring and yield estimation.
Parijat Jain, Partner & Leader of Bain’s Agri-business practice in India, said, “In the last six years, several start-ups have emerged to reduce systemic inefficiencies among inputs and marketplaces, precision farming, processing and storage.”
The Indian agriculture sector has been growing steadily at a CAGR of 11 per cent since 2015, and it contributes to approximately 37 per cent of the total rural GDP.