India’s US$ 24 billion agri-tech sector is growing with technologies like drones and precision farming, but faces challenges such as low awareness and limited credit access. Experts call for fiscal support in Budget 2025 to boost drone technology, provide uniform subsidies, and revamp the ₹500 crore PLI scheme. They also emphasize the need for increased R&D in AI and climate-smart farming, along with support for sustainable practices to enhance India’s global competitiveness.
India’s agri-tech sector, with an addressable market of US$ 24 billion, is seeing increased adoption of modern practices like crop mapping, precision farming, dairy breed improvement, and drones. While these technologies boost efficiency and enable informed decisions, digital adoption remains limited due to challenges such as low awareness, fragmented small farms, and limited access to credit.
Mr. Prem Kumar, Founder and CEO of Marut Drones, while expressing his expectations from the upcoming budget, highlights the need for fiscal support to accelerate agri-mechanization, particularly in advancing drone technology. He emphasizes that uniform subsidy schemes across states would drive wider adoption, fostering rural agri-entrepreneurs, creating drone pilot opportunities, and generating employment in tier 2 and 3 cities.
He added that, a revamped ₹500 crore Production-Linked Incentive (PLI) scheme could play a crucial role in strengthening local manufacturing and promoting drone leasing. He further urges the government to expedite approvals in the urban air mobility sector to fuel industry growth.
Despite employing 45% of the national workforce, the sector contributes only around 18% to GDP, largely due to challenges like low productivity and slow adoption of new technologies. This gap highlights the need for the government to focus on agricultural research and development in the 2025 budget, making it easier for farmers to access and adopt advanced technologies and innovations.
Shubajit Sinha, founder of 4Climate, while expressing his expectations from the upcoming budget, says, “Allocating dedicated funds or incentives for R&D in agritech, including IoT, AI-driven solutions, and climate-smart farming, would accelerate innovation and support the growth of global agritech companies from India.”
In the previous budgets, the government has launched several initiatives like the Digital Public Agriculture Infrastructure and an Agriculture Accelerator Fund to promote agri-tech growth and farmer-focused solutions in rural areas. Further efforts are also expected from the upcoming budget focusing on educating stakeholders, improving tech affordability, boosting R&D investments, and establishing robust data systems to deliver insights on market trends, weather, and best practices.
Narayan Lal Gurjar, founder of EF Polymer, shared his expectations for the upcoming budget, stating, “A dedicated budget is essential for scaling up innovation in agritech. Many agri-startups struggle to expand due to limited access to direct tenders, and several innovations are excluded from the FCO, making them ineligible for subsidies. Consequently, large companies reap the most benefits while startups face financial hurdles. Establishing a government-backed budget for large-scale pilot programs focused on startups would help bridge this gap, ensuring innovations reach farmers more effectively.“
As the climate crisis intensifies, it becomes essential to equip the country’s farming systems to tackle future challenges. The growing frequency of climate disasters, such as droughts and floods, results in significant crop and input losses for farmers. Mr Sinha added that “Supporting hydroponics, vertical farming, organic practices, and offering relevant certifications, along with relaxed export regulations and MSME subsidies for international exhibitions, would enhance sustainability and global competitiveness.”
With a rapidly expanding market, emerging technologies, and increasing policy focus, India’s agri-tech sector is set to transform agriculture, drive sustainability, and enhance global competitiveness. However, to unlock its full potential, Budget 2025 must address key challenges by providing fiscal incentives, strengthening R&D in AI and climate-smart farming, and ensuring uniform subsidies for wider technology adoption.
