India’s agriculture-based industry is the backbone of nearly half of the country’s workforce, providing livelihood for millions. With a population exceeding 1.4 billion, the demand for food is soaring, placing a significant burden on farmers to increase yields with scarce resources. Traditional farming, an activity with large amounts of generational knowledge, is struggling to keep pace with the intensified demands and threats established by climate change. At the same time, changing weather patterns, rising global temperatures, water scarcity, soil erosion, and other factors are impacting crop yields and agricultural sustainability.

According to the Ministry of Agriculture & Farmers’ Welfare, the average annual agricultural growth rate in India has been around 2.8 per cent in the past ten years, which is far from the 4 per cent rate needed to achieve future food demand. Moreover, studies indicate that climate change may reduce crop yields by 10-40 per cent by 2050 if corrective measures aren’t taken. That is true, but so is water scarcity, a significant one. Water scarcity continues to affect over 60 per cent of Indian agriculture, which still relies on unreliable monsoon rainfall. Soil degradation persists, with 30 per cent of India’s agricultural land now regarded as degraded due to excessive use of chemical fertilisers and deforestation. These statistics underscore the urgent need for innovation in agriculture, as relying solely on traditional methods may not be enough to address the food security challenges posed by India’s rapidly growing population.

Technology, particularly AI in agriculture, will be an important platform to build resilience. It will work discreetly, providing insights and data-driven information that help farmers make better decisions. From crop health monitoring to accurate water management, AI applications help farmers enhance productivity and conserve resources. Thus, by integrating digital tools with age-old farming practices, Indian agriculture is being revolutionised discreetly and deeply. This leap toward smarter, tech-enabled agriculture sets a pathway toward not only sustainability but also economic empowerment for India’s gigantic agricultural community.

Perhaps the most striking growth has been seen in Indian agritech companies over the past few years as they have been able to focus on and resolve some of the most challenging issues facing the agricultural sector. Studies compiled for assessing the agritech market of India have shown that its valuation will double by 2025. This rapid growth speaks to the immense potential this sector carries towards transforming farming into much more effective and sustainable agricultural systems. Agritech companies employ several cutting-edge technologies, including artificial intelligence, the Internet of Things, and blockchain technology, to create exceptional enhancements in efforts at crop monitoring, weather forecasting, supply chain management, and farmers’ access to finances.

Capacity Building

Agritech companies in India have paved the way for a revolutionary change in the agriculture sector by offering farmers data-driven insights that are better optimised than traditional methods. While decisions about planting, irrigation, and pest control were previously made based on general traditions, with farmers relying on older generations for major decisions, they now entail complex considerations involving real-time, data-driven solutions. Agritech firms bridge this gap by using AI and machine learning to analyse huge datasets on soil health, crop patterns, and weather conditions.

According to a joint report by NASSCOM and McKinsey, AI-based solutions in agriculture are said to unlock a $65 billion potential in the Indian market by improving crop monitoring, soil analysis, and pest management. In these ways, agritech companies help farmers optimise resource utilisation, reduce unnecessary losses, and increase productivity—an immediate need, particularly in climate-sensitive regions like India.

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By Phani Kumar Thota, Chief Operating Officer, Samunnati