CIOInsider India Magazine
Agritech Could Become a $35 billion Market in India by 2025: Bain
A report by Bain & Company, Inc estimates that approximately $30 billion to $35 billion of value pool will be created in Indian agritech industry – across agri-logistics, offtake, and agri-input delivery by 2025. The report named ‘Indian Agriculture: Ripe for Disruption’ says that the $370 billion sector will undergo a complete transformation in the coming years on the back of significant technology and regulatory changes.
The insights were contributed by Bain’s Partners Parijat Jain, Prashant Sarin, and Shalabh Singawne. The trio estimates that agriculture’s contribution to the country’s gross value added (GVA) is about 20 percent, and they view that agriculture in India continues to be dominated by small and marginal land holdings. Additionally, close to 55 percent of the Indian population still depends on agriculture for their livelihood.
“The idea of doubling farmer incomes in the next few years is likely to become a reality based on the technological and regulatory changes in this sector. In addition, the agritech and agri-ecosystem sectors have seen significant interest from the investor community over the past few years,” the report said.
The report also highlights the funding influx in the sector. Currently, India is the third-largest nation in terms of funding received and start-ups in the agritech space. “We believe there will be significant value creation in the agricultural value chain across the entire ecosystem over the next two decades, which will fundamentally change the way we produce and consume food, in India and globally,” the report added.
The idea of doubling farmer incomes in the next few years is likely to become a reality based on the technological and regulatory changes in this sector. In addition, the agritech and agri-ecosystem sectors have seen significant interest from the investor community over the past few years,
The trio also identified three key ways for firms across sectors to capitalize on the opportunity to reinvent Indian agriculture by leveraging the technology ecosystem:
*Companies in the agriculture sector could build an integrated agritech platform.
*Companies in the agriculture sector could digitally transform internal business processes to adapt to regulatory and technological changes.
*Companies in other sectors could exploit the rapidly developing agritech ecosystem through a corporate venture capital center of excellence (CoE).
