Government Policies Supporting Agritech in India
Enabling Innovation for a Resilient and Digital Farming Future India’s agriculture sector, the livelihood source for over 50% of the population, is undergoing a historic transformation. This shift is driven not just by startups and private innovation, but also by proactive government policies that recognize agritech as a catalyst for economic growth, rural development, and food security. With increasing climate risks, supply chain inefficiencies, and the need for better farmer incomes, agritech—powered by AI, IoT, blockchain, and data analytics—has emerged as a critical focus area. In response, the Government of India has introduced a suite of supportive policies and schemes to nurture this ecosystem.
HawkEya
5/20/20252 min read
Why Agritech Needs Policy Support
Agriculture in India faces complex challenges:
Small landholdings and fragmented farms
Post-harvest losses and storage issues
Lack of access to real-time data, credit, and markets
Low mechanization and tech adoption
Climate vulnerability
Agritech holds the key to solving these—but to reach millions of farmers, it needs regulatory facilitation, infrastructure, financial incentives, and digital literacy. That’s where government policy plays a game-changing role.
Key Government Policies and Schemes Driving Agritech Growth
1. Digital Agriculture Mission (2021–2025)
A flagship initiative focused on integrating technology in Indian agriculture:
Promotes use of AI, ML, IoT, drones, and blockchain
Develops a Federated Farmers Database for personalized services
Encourages public-private partnerships in digital innovation
Supports mobile apps and decision-support systems for farmers
2. Agri Infra Fund (AIF)
A ₹1 lakh crore financing facility for creating agri-infrastructure:
Loans for cold chains, warehouses, grading units, precision farming tools
Interest subvention and credit guarantee
Special benefits for FPOs, agri-startups, PACS, and rural entrepreneurs
This helps agritech startups build physical infrastructure alongside digital services.
3. Startup India and Atal Innovation Mission
Provides funding, incubation, and tax relief for agri-startups:
Startup India Seed Fund Scheme (SISFS) supports early-stage innovations
AICs and Atal Tinkering Labs promote rural agritech innovation
Enables fast-track patent and IP protection processes
4. e-NAM (Electronic National Agriculture Market)
An online trading platform that connects 1300+ mandis across India:
Facilitates transparent, tech-enabled price discovery
Promotes direct farmer-to-buyer transactions
Offers real-time market information to optimize crop decisions
Many agritech companies integrate with e-NAM APIs to offer bundled services.
5. PM-Kisan and DBT Linked Reforms
Over ₹2,000 per year given to small/marginal farmers directly via DBT
Linked with land records, Aadhaar, and KYC systems
Creates a verified base for tech-enabled financial and insurance services
This opens up new opportunities for agritech players in agri-fintech and data-based advisory.
6. Krishi UDAN and Agri-Export Policy
Krishi UDAN Scheme enhances air freight of perishable goods from Northeast, tribal, and hill areas
Agri-Export Policy promotes traceability tech, blockchain for compliance, and export-oriented agribusiness parks
Encourages startups in supply chain and export traceability verticals
7. FPO Policy and 10,000 FPO Formation Scheme
Target to create 10,000 Farmer Producer Organizations by 2027-28
Offers equity grants, credit guarantees, and capacity building
Empowers agritech startups to work with FPOs as service partners for input management, logistics, advisory, etc.
Regulatory Initiatives Supporting Innovation
a. Drone Policy for Agriculture
Drones allowed for pesticide spraying, crop monitoring, and land mapping
100% subsidy for drone purchases by ICAR and KVKs
Training and licensing facilitated for drone operators
This creates a strong runway for precision farming and aerial agritech services.
b. National Data Policy for Agriculture (Draft)
Aims to make anonymized agri-data available for public and private innovation
Builds a consent-based data exchange ecosystem
Supports development of interoperable platforms for advisory, insurance, and finance
c. Open Network for Digital Commerce (ONDC) in Agriculture
Supports open, neutral e-commerce networks
Promotes interoperability between agritech service providers
Helps FPOs and smallholders access digital markets more affordably
Challenges and The Way Forward
Despite policy momentum, some gaps remain:
Low digital literacy among smallholder farmers
Uneven internet access in rural areas
Complex application processes for subsidies or funds
Need for convergence between central and state schemes
Fragmented data governance
Recommendations:
Simplify access to schemes via single-window digital portals
Expand rural internet connectivity and training programs
Build policy sandboxes for agritech experimentation
Create agritech clusters and hubs at state and district levels
Encourage state-level policy innovation (like Telangana’s AgriTech Sandbox)
Conclusion
India’s journey toward a tech-driven agricultural future is not just about innovation—it's about inclusive policy design, collaborative ecosystems, and rural empowerment.
Government policies are no longer just subsidy mechanisms—they are platforms for entrepreneurship, innovation, and systemic change. As these frameworks mature, agritech in India is poised to drive food security, climate resilience, and rural prosperity on an unprecedented scale.
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