Context: According to a report by Aspire Impact, with an investment of USD 272 billion in agritech and allied segments by 2030, India can generate USD 813 billion in revenue creating 152 million jobs, making it the largest private sector industry in the country.

Key Findings

• India’s agricultural mechanization levels, is at 40-45 percent unlike 90 percent in the developed economies.
• With a gap of 3.2 million tonnes in cold storage, the food processing industry incurred a loss worth USD 14 billion in 2018.
• 55 percent of India’s forests are prone to fire with 70 percent having no natural regeneration.
• To meet the dairy need, India is required around 600 million tonnes of milk per year in 2060.
• Smart innovation, infrastructure and policy support and newer business models can attract USD 272 billion in investments and generate USD 813 billion in revenue.
• India is at the biggest production risk with 68 % of the cultivation area being directly dependent upon the monsoon accounting for 40-45 % of total agriculture production.
• According to media reports the demand for key food grains is expected to grow at an annual rate of 3 per cent against the projected population growth of 2 per cent further underlines the challenge that the country faces today.

Road Ahead

• There is significant investments in the sector along with a policy push is needed to ensure transformation in agriculture practices and ecosystem. With agritech start-ups and innovative models speculated to dominate the sector, India Inc has already started paving this path to change.