Innovation and AgriEntrepreneurship Development programme under Rashtriya Krishi Vikas Yojana (RKVY) by the agriculture ministry has released Rs 122.50 crore to support 1,708 agri startups between FY20 and FY24 through various knowledge partners and agribusiness incubators.
The information shared by Bhagirath Choudhary, Minister of State for Agriculture and Farmers Welfare noted that 532 agri startups were supported with Rs 47.25 crore released in FY24 and 253 startups were supported with Rs 24.35 crore released in FY23. In FY22, 277 startups were supported with Rs 20.34 crore.
Implemented in FY20, the programme aims to promote innovation and agri-entrepreneurship by providing financial and technical support to startups.
Under the programme, financial support up to Rs 5 lakh is provided at the idea/pre seed stage and up to Rs 25 lakh at the seed stage to startups in agriculture & allied sectors to launch their products, services, business platforms, etc., and to facilitate in scaling up.
To support agri startups and rural enterprises, the government in September this year had launched AgriSURE scheme on 3rd September 2024 through NABVENTURES, a wholly owned subsidiary of the National Bank for Agriculture and Rural Development (NABARD).
The total corpus of the fund is Rs 750 crore (Rs 250 crore each contributed by the central government and NABARD) while the remaining Rs 250 crore to be mobilized from banks, financial institutions, and other private entities.
The role of agriculture startups has gained significance over the years with agriculture likely to contribute around $600 billion to India’s GDP by 2030, an increase of 50 per cent over its contribution in 2020, McKinsey & Company said in a report in May last year.
With respect to agriculture technology, between 2013 and 2020, the agtech landscape in India grew from less than 50 start-ups to more than 1,000 and has the potential to contribute $95 billion to the Indian economy by 2030.