According to GlobalData estimates, the agriculture and allied sector contributed 18.4% to the gross value added (GVA) and employed 44.8% of the total labour force in 2022. With the agricultural sector being a key contributor and employer, it received the much-needed push in the Union Budget. India’s agricultural and allied sector GVA could rise by 10.2% during 2023-25, it said.
“Traditionally, the farmers and MSMEs have struggled to gain access to formal and cheaper credit, which is a lifeline of these setups. Announcement of agricultural credit focussed on expanding the ambit of farmer earrings is a welcome step and will go a long way in boosting the much required farmer incomes,” said Shashank Singh, cofounder, Poshn, India’s first agri commodity trading platform.
Budget 2023: FM Sitharaman announces accelerator fund to push agritech startups
“This will open a plethora of options for the community in terms of access to market info, financial products and innovative farming solutions.”
Experts said agri-tech as a sector is the only one that has not produced any unicorn so far and the segment is expected to see more innovative startups working towards technological transformations to not only make farming sustainable but also work towards providing food security for billions of people.
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“The agri accelerator fund would also help develop startups with expertise in horticulture, alternative proteins, aquaculture and food waste reduction can help address these challenges across the world,” said Dhianu Das, cofounder, Agility Ventures.
“Accelerators advise and support for efficient and effective development of tech to enable a large chuck of our population engaged in agriculture produce healthier food alternatives. Such accelerator enables cross-pollination of research and technology from across industry and geography.”
Over the past decade, sales of branded daily needs goods in the nation of 1.3 billion people have increasingly relied on rural India – home to more than 800 million people whose purchase behaviour is largely linked to farm output.
“The fund will add a lot of value by bringing innovative, affordable solutions with modern technologies that will increase agricultural production practices, which is critical for long-term economic growth. As a result, this will lead to profitable growth for Bharat,” said Vamsi Udaygiri, founder, Hesa, an agrifin startup.