Publishing: August 2021 | Report Code: IM12200 | Available Format: PDF
The agriculture sector contributed 17.8% to the gross domestic product (GDP) of India in 2020, and its contribution is expected to rise in the coming years. As a result, the Indian farming as a service (FaaS) market is expected to observe steady growth in the forecast period. This can be credited to the initiatives of the government, such as the Soil Health Card Scheme and Prime Minister Kisan scheme, and those of private players to improve agricultural productivity and efficiency. For instance, ITC Ltd. and Mahindra & Mahindra Ltd. have entered the market with e-Choupal and Krish-e centers, respectively.
The effect of the COVID-19 pandemic on the agriculture industry is quite low compared to other industries, and the Indian farming as a service market is growing steadily due to the stable demand for agricultural products. Moreover, the heavy funding raised by many startups, such as Clover Ventures Private Limited and LeanCrop Technology Solutions Pvt. Ltd., in the recent past is helping them maintain the cash flow.
In 2020, the farm management solutions category held the largest revenue share in the India Farming as a Service market, based on type, owing to the presence of numerous market players and huge investments by public and privately owned businesses. Moreover, the rapid developments in products and solutions for farming activities are driving the interest in farm management solutions.
With the rapidly increasing government support for the agricultural sector, many investors and organizations are finding a great opportunity here, which has resulted in huge investments in agricultural technology startups. For instance, in 2021, $20 million were invested in Cropin Technology Solutions Pvt. Ltd. by ABC World Asia, while $4 million were invested in RML Information Services Pvt. Ltd. by Nandan Nilekani in 2017. Thus, the adoption of the FaaS concept is expected to display significant growth in India in the forecast period.
Various initiatives have been taken by the central and state governments to provide benefits and security to farmers, such as preventing fraudulent activities, including the Paramparagat Krishi Vikas Yojana (PKVY) and the setting up of the Agricultural Technology Management Agency (ATMA). Thus, the agritech market is gaining the interest of many investors and large organizations. The government is also improving the infrastructure and promoting innovations in farming, such as FaaS and digital transactions, which would propel the market in the upcoming years.
There are many benefits that good internet connectivity can offer to farmers, such as cost reduction by minimizing the waste and optimizing the use of the various inputs in farming activities, such as fertilizers, seeds, and soil. With the improving internet connectivity in rural areas, the adoption of FaaS would increase, as it provides numerous benefits, including increased productivity and efficiency via data-driven decisions.
|Report Coverage||Market Trends, Drivers, and Restraints, Revenue Estimation and Forecast, Segmentation Analysis, Impact of COVID-19, Companies’ Strategic Developments, Market Share Analysis, Company Profiling|
|Market Size by Segments||By Type, By Model|
|Secondary Sources and References (Partial List)||Agricultural Society of India, Agricultural Technology Management Agency, All India Agricultural Students Association, All India Shrimp Hatcheries Association, Cashew Export Promotion Council, Fertiliser Association of India, India Brand Equity Foundation, India EAEU Conclave, Indian Agricultural Association, Indian Dairy Association, Indian Farmers Association, Indian Society of Agribusiness Professionals|
Established players, along with startups, are entering the market owing to its vast potential. Some of the players operating in the Indian farming as a service market are Mahindra & Mahindra Ltd., Tractors and Farm Equipment Limited (TAFE), ITC Ltd., Cropin Technology Solutions Pvt. Ltd., Ulink Agritech Pvt. Ltd., Em3 Agriservices Pvt. Ltd., Utkal Tubers India Pvt. Ltd., Intello Labs Pvt. Ltd., RML Information Services Pvt. Ltd., KhetiBuddy Agritech Private Limited, and Deere & Company.
In February 2021, Mahindra & Mahindra Ltd. launched its FaaS business in Karnataka by opening Krish-e centers in five locations. Krish-e centers are now present in many major states, including Gujarat and Uttar Pradesh. These centers offer many solutions and support to farmers, such as offering rentals for advanced farming equipment and agronomy advice.
In June 2020, KhetiBuddy Agritech Private Limited launched a free mobile app, via which it offers farm management solutions for farmers. It assists farmers in managing the fields, sowing, and harvesting. This app also guides farmers in personalizing the crop schedule based on weather, inventory data, and soil data, with localized information
The India farming as a service market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.
Based on Type
Based on Model
The launch of several initiatives by the government for supporting farmers is the major growth driver of the Indian FaaS market.
The COVID-19 pandemic is supporting the growth of the Indian FaaS industry.
The surging investments being made for promoting agricultural startups is the major trend currently being witnessed in the Indian FaaS industry.
The farm management solutions category led the FaaS market in India in 2020, because of the huge investments made by several private and public organizations in farm management solutions.
The FaaS market in India has been segmented on the basis of type and model.
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