According to a report titled “Investing for Impact: Food, Agri, and Agritech” by Aspire Impact, with an investment of about 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 India.
Investment in agritech and related sectors has the potential to change the face of Indian agriculture, with far-reaching implications for food security and sustainable farming solutions.
In the last 10 years, India has attracted about USD 9 billion in FDI investments in the agriculture sector.
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.
The report has been authored by leading agritech experts, industry leaders, academics, and thinkers. The report further said India has its share of challenges when it comes to agricultural practices, including mechanization levels, which are at 40-45 percent, compared to 90 percent in the developed economies.
The country has been projected to be at the biggest production risk, with 68 percent of the cultivation area being directly dependent upon the monsoon, accounting for 40–45 percent of total agriculture production, it noted.
With a gap of 3.2 million tonnes in cold storage, the food processing industry incurred a loss worth USD 14 billion in 2018. At the same time, the report stated that 55 percent of the country’s forests are prone to fire, with 70 percent having no natural regeneration. The demand for key food grains is expected to grow at an annual rate of 3 percent, against the projected population growth of 2 percent, further underlining the challenge that the country faces today.
To meet its dairy needs, India would require around 600 million tonnes of milk per year in 2060 and onwards, it said, adding that significant investments in the sector along with a policy push are needed to ensure transformation in agriculture practises and the ecosystem. With agritech start-ups and innovative models speculated to dominate the sector, India Inc. has already started paving this path to change, it said.