In the past six years, India's agriculture sector has shown significant growth, averaging at a 4.6% annual rate. The nation has become a prominent net exporter of agricultural goods, as highlighted by data from the 2023 Economic Survey.
The previous Union Budget made commendable strides in implementing crucial reforms for the sector, ranging from increased farmer credits and green initiatives to the promotion of precision farming. Financial support extended to various agricultural domains, including fisheries and animal husbandry, with a heightened focus on leveraging artificial intelligence (AI) processes. 'Green growth' emerged as one of the central priorities in the Budget of 2023.
This year, the focus remains on digitizing the agriculture sector, with a particular emphasis on fostering innovation, providing additional financial aid to agritech startups, and addressing concerns regarding data privacy and security.
According to Genji Jairam, Managing Director of Farminno Tech, an agritech startup based in Andhra Pradesh, there is a growing anticipation for increased focus on emerging technologies such as AI, machine learning (ML), and the internet of things (IoT). Jairam suggests that the government should introduce tax incentives to encourage investment in research and development in agriculture technology applications like IoT and AI.
Sandiip Bhammer, Founder and Co-Managing Partner of Green Frontier Capital, echoes this sentiment, envisioning a deeper integration of technology in agriculture to bolster productivity and sustainability. He also advocates for technology-driven credit facilitation for small and medium farmers, emphasizing the need for continued digital initiatives across various sectors.
Furthermore, Jairam emphasizes the importance of incentivizing subsidy-based machinery for farmers and promoting smart AI/ML-based practices like polyhouse and greenhouse farming. Such initiatives align with the increasing demand for sustainable and technologically advanced agricultural practices.
