The Ministry of Agriculture’s Innovation and Agri-Entrepreneurship Development programme, under the Rashtriya Krishi Vikas Yojana (RKVY), has become a driving force behind innovation and entrepreneurship in India’s agricultural sector. Between FY20 and FY24, the programme has disbursed ₹122.50 crore to support 1,708 agri-startups, providing them with financial and technical assistance through knowledge partners and agribusiness incubators.
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The Innovation and Agri-Entrepreneurship Development programme under the Rashtriya Krishi Vikas Yojana (RKVY), spearheaded by the Ministry of Agriculture, has emerged as a catalyst for fostering innovation and entrepreneurship in India’s agricultural landscape. Between FY20 and FY24, the programme has allocated ₹122.50 crore to support 1,708 agri-startups, empowering them through financial and technical aid delivered by knowledge partners and agribusiness incubators.
According to Bhagirath Choudhary, Minister of State for Agriculture and Farmers Welfare, 532 agri-startups received ₹47.25 crore in FY24, while 253 startups were supported with ₹24.35 crore in FY23. In FY22, the programme funded 277 startups with ₹20.34 crore. Launched in FY20, the initiative provides up to ₹5 lakh in funding at the idea or pre-seed stage and up to ₹25 lakh at the seed stage, enabling startups in agriculture and allied sectors to launch and scale their offerings.
In a further push to support agri-startups and rural enterprises, the government introduced the AgriSURE scheme on September 3, 2024, through NABVENTURES, a subsidiary of the National Bank for Agriculture and Rural Development (NABARD). With a total corpus of ₹750 crore, the scheme combines contributions from the central government and NABARD (₹250 crore each) with an additional ₹250 crore to be mobilized from banks, financial institutions, and private entities. AgriSURE aims to enhance rural enterprise viability and foster innovation-driven growth in agriculture.
The role of agri-tech startups in shaping the future of Indian agriculture has gained prominence. According to a May 2023 report by McKinsey & Company, agriculture is projected to contribute $600 billion to India’s GDP by 2030, reflecting a 50% growth since 2020. This optimism is fueled by the burgeoning agri-tech ecosystem, which grew from fewer than 50 startups in 2013 to over 1,000 by 2020. By 2030, agri-tech is expected to contribute $95 billion to the Indian economy, driven by innovative solutions in precision farming, supply chain optimization, and market linkage platforms.
The Innovation and Agri-Entrepreneurship Development programme, combined with initiatives like AgriSURE, exemplifies the government’s commitment to harnessing technology and entrepreneurship to drive sustainable agricultural growth. These efforts not only empower startups but also position India as a global leader in agri-tech innovation, ensuring a prosperous future for farmers and entrepreneurs alike.
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