New Delhi, India — India’s agricultural sector, a cornerstone of its economy and livelihood for millions, is witnessing a transformative phase with the government’s significant financial infusion into agri-startups. Since the fiscal year 2019-20, the Indian government has allocated a substantial Rs 106.25 crore to support 1,524 agri-startups, marking a strategic move to foster innovation and entrepreneurship in this vital sector.
Unveiling the Program’s Scope and Impact
Under the “Innovation and Agri-Entrepreneurship Development” program, part of the Rashtriya Krishi Vikas Yojana (RKVY), the initiative aims to promote innovation and agri-entrepreneurship. This is achieved by providing both financial and technical support, nurturing a vibrant startup ecosystem within the country. Five Knowledge Partners (KPs) and 24 RKVY Agribusiness Incubators (R-ABIs) have been engaged to train and incubate these startups.
Financial Support and Distribution
The financial support extended under this program is tiered, with up to Rs 5 lakh provided at the idea/pre-seed stage and up to Rs 25 lakh at the seed stage. These funds are aimed at helping entrepreneurs and startups in agriculture and allied sectors to launch their products, services, and business platforms. The financial assistance, totaling Rs 10,625.08 lakh, has been released in installments to these startups through various KPs and R-ABIs from 2019-20 to 2023-24.
Diverse Areas of Focus
These agri-startups are engaged in various areas of agriculture and allied sectors, including precision agriculture, farm mechanization, agri-logistics, supply chain, and more. Their work spans from the ‘idea’ stage to ‘scaling’ and ‘growth’ stages, contributing significantly to the diverse needs of India’s vast agricultural landscape.
Encouraging Figures
The breakdown of the funding over the years reveals a consistent and growing commitment to this cause. The year-wise details are as follows:
- 2019-20: 58 startups with Rs 3.13 crore
- 2020-21: 588 startups with Rs 27.43 crore
- 2021-22: 277 startups with Rs 20.34 crore
- 2022-23: 253 startups with Rs 24.35 crore
- 2023-24: 348 startups with Rs 31.00 crore
Conclusion
This initiative by the Indian government is a significant step towards modernizing and invigorating the agricultural sector through technology and innovation. By backing agri-startups, the government is not only boosting the economy but also paving the way for sustainable agricultural practices that are vital for the country’s future.