According to a report, with an investment of USD 272 billion in Agritech and related segments by 2030, India can generate USD 813 billion in revenue while creating 152 million jobs, making it the country's largest private sector industry.
With agriculture remaining the country's mainstay of the economy, investment in agritech and allied segments can transform the face of Indian agriculture, with far-reaching implications for food security and sustainable farming solutions, according to Aspire Impact's Report titled 'Investing for Impact: Food, Agri, and Agritech.'
Report Insights:
According to Amit Bhatia, founder of Aspire Circle and creator of the Impact Future Project, India has received approximately USD 9 billion in FDI investments in the agriculture sector over the last decade.
He added that this decade brings an opportunity for India Inc to take advantage of the massive untapped potential this sector holds and transform it to be sustainable and future-ready. Leading agritech experts, industry leaders, academics, and thinkers contributed to the report.
"With smart innovations, infrastructure and policy support, and newer business models," he continues, "the top-10 ideas researched by the IFP community can attract USD 272 billion in investments and generate USD 813 billion in revenue, impacting 1.1 billion lives."
According to the report, India faces a number of challenges when it comes to agricultural practices, including low mechanization levels of 40-45 percent, compared to 90 percent in developed economies.
According to estimates, the country faces the greatest production risk, with 68 percent of the cultivation area directly dependent on the monsoon, accounting for 40-45 percent of total agriculture production. The food processing industry lost USD 14 billion in 2018 due to a 3.2 million-tonne gap in cold storage.
Simultaneously, the report stated that 55% of the country's forests are prone to fire, with 70% having no natural regeneration. The fact that demand for key food grains is expected to grow at a 3% annual rate, compared to a 2% projected population growth, highlights the country's current challenge.
India would require around 600 million tonnes of milk per year in 2060 and beyond to meet its daily needs, it said, adding that significant investments in the sector, as well as a policy push, are required to ensure transformation in agricultural practices and ecosystem.
With Agritech start-ups and innovative models expected to dominate the sector, India Inc has already begun to pave the way for change, according to the company.
