Agriculture acceleration fund can aid in employment creation: GlobalData research
Initiatives to encourage agri-startups, such as the development of an agricultural accelerator fund, expanding the agro credit target to $24.9 billion, and promoting agri-tech, would help enhance productivity and job creation in the industry, according to GlobalData, a UK-based research business.
According to GlobalData forecasts, the agricultural and allied industry will generate 18.4% of total GVA and employ 44.8% of the labour force in 2022. The agriculture industry, which is a major contributor and employment, received a much-needed boost in the Union Budget. According to the report, India’s agriculture and allied sector GVA might expand by 10.2% between 2023 and 2025.
“Traditionally, the farmers and MSMEs have struggled to gain access to formal and cheaper credit, which is a lifeline of these setups. Announcement of agricultural credit focussed on expanding the ambit of farmer earrings is a welcome step and will go a long way in boosting the much required farmer incomes,” said Shashank Singh, cofounder, Poshn, India’s first agri commodity trading platform.
“This will open a plethora of options for the community in terms of access to market info, financial products and innovative farming solutions.”
According to experts, agri-tech is the only industry that has yet to create a unicorn, and the area is predicted to see more inventive companies working towards technological changes to not only make farming sustainable, but also to provide food security for billions of people.
Dhianu Das, cofounder, Agility Ventures, said, “The agri accelerator fund would also help develop startups with expertise in horticulture, alternative proteins, aquaculture and food waste reduction can help address these challenges across the world.
“Accelerators advice and support for efficient and effective development of tech to enable a large chunk of our population engaged in agriculture to produce healthier food alternatives. Such an accelerator enables cross-pollination of research and technology from across industry and geography.”
Over the past decade, sales of branded daily needs goods in the nation of 1.3 billion people have increasingly relied on rural India – home to more than 800 million people whose purchase behavior is largely linked to farm output.
“The fund will add a lot of value by bringing innovative, affordable solutions with modern technologies that will increase agricultural production practices, which is critical for long-term economic growth. As a result, this will lead to profitable growth for Bharat,” said Vamsi Udaygiri, founder, Hesa, an agrifin startup.
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