India’s agri-tech sector is poised for substantial growth, with investments projected to reach $600 million by 2029, according to a report released by 1Lattice on July 17. The sector is expected to expand at an annual rate of around 6%, signaling renewed investor confidence in agricultural innovation. This growth follows a brief slowdown in funding after 2022, as the sector now shows strong signs of recovery.
The agri-tech landscape in India has undergone significant transformation in recent years. The pandemic, in particular, spurred a wave of entrepreneurship, with 572 new agri-tech startups emerging in 2020 alone. This surge was driven by the agriculture sector’s increasing reliance on digital solutions to navigate disruptions. Funding activity also saw a notable rise, with deals increasing from 53 in 2019 to a peak of 101 in 2022. While the number of deals has since stabilized to around 60 to 70 annually, investor priorities have shifted. The focus is now on scalable and executable business models rather than early-stage experiments.
Several key factors are contributing to this growth trajectory. Impact investors, who prioritize sustainability, are becoming more engaged in the sector. Digital tools such as Agristack and the electronic National Agriculture Market (eNAM) are enhancing transparency and efficiency across the agricultural supply chain. Additionally, the demand for Indian crops is rising, both domestically and internationally.
Technology is at the heart of this transformation. Innovations such as AI-powered data tools and smart irrigation systems are empowering farmers to optimize resource use, boost productivity, and address climate-related challenges. As capital continues to flow into the sector and digital infrastructure strengthens, agri-tech is set to play a pivotal role in India’s transition toward more sustainable and modern agricultural practices.
Earlier this year, Union Minister of State for Science and Technology Jitendra Singh highlighted the role of startups in agriculture, noting their ability to blend traditional organic farming practices with technology. Speaking at the Natural and Organic Farmers Summit 2025 in April, Singh praised grassroots innovators and farmer-entrepreneurs for leveraging science to enhance agricultural productivity and ensure sustainable incomes. This integration of traditional knowledge with modern technology underscores the potential of agri-tech to drive rural livelihood opportunities.
The implications of this growth are far-reaching. As the agri-tech sector expands, it is likely to attract further investment, fostering innovation and creating jobs. The emphasis on sustainability and efficiency could lead to more resilient agricultural practices, better equipped to handle the challenges posed by climate change. Moreover, the increased adoption of digital tools and technologies could improve market access for farmers, enhancing their economic prospects.
The trajectory of India’s agri-tech sector suggests a promising future, with the potential to revolutionize agricultural practices and contribute significantly to the country’s economic growth. As the sector continues to evolve, it will be crucial to monitor how these advancements translate into tangible benefits for farmers and the broader agricultural community.