The new agritech paradigm: From innovation to integration

Strengthening India's agricultural ecosystem through technology-led innovation, policy enablement and collaborative growth

In brief

• India’s agritech landscape is evolving from fragmented innovation to integrated, scalable modernization, driving inclusive agriculture transformation
• At the heart of future-ready agriculture lies scalable infrastructure, unified data ecosystems, smart farming, agriculture sustainability and strategic financing
• Addressing technology validation mechanisms, affordability gaps and data ecosystem silos is critical to unlocking inclusive growth and long-term resilience

India’s agricultural transformation: From tradition to technology

India’s agriculture sector supports nearly 58% of the population and contributes approximately 18% to GDP¹. The sector is evolving beyond traditional practices, embracing digitalization, agriculture sustainability and inclusive growth.

The EY-Assocham report, The new agritech paradigm: From innovation to integration for a future ready agriculture in India, highlights agri technology’s critical role in reshaping India’s agricultural landscape through the convergence of sustainable agri solutions, smart farming solutions, digital supply chains and circular agri economy.

The emerging agritech landscape enabling a resilient and inclusive agri-economy

The next frontier of agritech innovations moves beyond incremental improvements to create an integrated agritech ecosystem where AI-powered analytics, climate smart farming, farm automation, blockchain-enabled supply chains and sustainable agri solutions work together. This transformation is creating new opportunities for agritech innovations entrepreneurship, promoting climate-smart farming practices and enabling data-driven policymaking.

While innovations in genomics and bio-enhanced inputs are building a climate-resilient farming ecosystem, IoT-enabled monitoring, drone-assisted spraying, and sensor-guided harvesting are delivering measurable improvements in yield and resource efficiency. In addition, biogas, bio-CNG and waste-to-energy initiatives are driving agriculture sustainability, aligning with national climate goals.

Key enablers transforming the agritech ecosystem

India’s digital agriculture transformation is anchored in three foundational enablers:

• Digital Public Infrastructure (DPI): Platforms like AgriStack, Krishi DSS, VISTAAR, and ONDC are streamlining service delivery and enabling plug-and-play innovation. These systems provide startups with verified datasets and APIs, accelerating low-cost development and public-private collaboration.
• Agriculture innovation ecosystem: Over 7,000 agri-startups² and multiple incubators are driving inclusive entrepreneurship. Initiatives like RKVY-RAFTAAR and the INR750 crore AgriSURE Fund are de-risking innovation and enabling scale.
• Capital inflows: With US$1.28 billion invested in FY22³, the sector is witnessing a shift from experimentation to ecosystem-scale growth. Investment is shaping viable business models and expanding reach across the value chain

Structural barriers to scale and adoption

Despite strong momentum, several structural barriers constrain agritech adoption:

• Fragmented farmer base: Over 85% of farmers operate on less than 2 ha, making it difficult to design scalable, localized solutions⁴.
• Limited financial inclusion: Low purchasing power, seasonal income and lack of tailored financial products restrict access to innovations.
• Data silos: Absence of secure, interoperable data ecosystems limits integration of advisory, market and financial services.
• Validation and infrastructure gaps: Complex validation processes and inadequate last-mile infrastructure reduce credibility and slow commercialization.

Strategic pathways for integration and impact

To move from innovation to integration, India could adopt three strategic approaches:

Agritech sandboxes: These are collaborative platforms for piloting and validating technologies in real-world conditions. Anchored by state departments and supported by Indian Council of Agricultural Research (ICAR), State Agricultural Universities (SAUs), and National Bank for Agriculture and Rural Development (NABARD), these sandboxes can build trust and accelerate commercialization.

Unified data ecosystems: The ecosystem would be crucial for establishing an Agricultural Data Commons based on FAIR principles to enable secure, interoperable and reusable data exchange. Telangana’s Agricultural Data Exchange (ADeX) is a model for democratizing access and powering intelligent solutions.

New-age business models: Startups could adopt differentiated models based on technology complexity and capital intensity. From grassroots retail to SaaS and leasing models, these approaches would ensure last-mile access and sustainable scale.