1Lattice-IVCA Report Projects ₹38 Lakh Crore Growth for India’s Agri Sector by 2030, Fueled by Tech & Innovation

India’s agricultural sector, long regarded as the backbone of the country’s economy, is undergoing notable changes shaped by shifting consumer demands, emerging technologies, and evolving farming methods. A new report jointly published by 1Lattice and the Indian Venture and Alternate Capital Association (IVCA) projects that the total value of India’s agriculture market is expected to reach ₹38 lakh crore by the financial year 2030. This is up from an estimated ₹31 lakh crore in the financial year 2025.

The report titled Innovations in Agriculture was unveiled during the Startup Mahakumbh held in Delhi and takes a broad look at the current state of the sector, its components, and the factors likely to influence its growth trajectory over the next few years.

India’s agricultural story is long and layered, deeply rooted in tradition yet increasingly shaped by innovation. For decades, farmers across the country have worked the land with inherited wisdom, grappling with monsoons, market fluctuations, and manual methods. Today, a quiet transformation is taking place—one that does not dismiss tradition but integrates it with data, technology, and new business models.

From farmers adjusting their methods to companies rethinking how inputs, credit, and markets are delivered, India’s agro-sector is moving into a phase of cautious but promising evolution. This shift is not flashy; it is measured, responsive, and shaped by the realities of over 100 million smallholders who form the backbone of Indian agriculture.

Mapping the Scale and Composition of India’s Agricultural Market

India’s agriculture market comprises three main segments: ground agriculture, livestock, and fisheries. The combined annual output value of these sectors currently stands at over ₹30 lakh crore. Ground agriculture contributes around 60 percent to this total, livestock makes up approximately 30 percent, and the fisheries segment accounts for the remaining 10 percent.

Among Indian states, Uttar Pradesh emerges as the single largest contributor to the national agriculture market, representing close to 10 percent of the total value. Meanwhile, Karnataka is positioning itself as a fast-growing player in this space, registering an annual growth rate of roughly 4 percent.

Ground agriculture alone is valued at approximately ₹18 lakh crore and is growing annually at the same pace of about 4 percent. This segment includes the cultivation of staple food grains, vegetables, fruits, and other crops essential for domestic consumption and export.

The livestock segment, currently valued at ₹9 lakh crore, is witnessing a slightly higher growth rate of around 5 percent each year. Milk remains the dominant product within this segment, accounting for nearly 70 percent of the total value.

On the fisheries front, the market is valued at about ₹2 lakh crore and is growing at a rate of 7 percent per year. Interestingly, the fisheries sector is evenly split between inland and marine production. Andhra Pradesh plays a critical role here, contributing almost 40 percent to the national fisheries output.

Also Read: Over 100 Agritech Startups Shine at Startup Mahakumbh in New Delhi

Fragmented Fields and Frustrated Farmers: The Reality Before the Shift

The groundwork for any sectoral growth is often laid by understanding the nature of its bottlenecks. In India’s agricultural sector, several systemic challenges have been persistent. The most obvious one is the small landholding pattern—most Indian farmers work on less than two hectares. With such limited space, the margin for error is slim, and the scope for scale is even slimmer.

Add to that the dependence on erratic monsoons, low mechanization, poor access to institutional credit, and a fragmented supply chain, and you have a scenario where most farmers struggle just to stay afloat. Traditionally, agriculture has also been heavily reliant on informal channels—whether it’s borrowing from local lenders or selling to middlemen at mandis. This not only reduces the farmer’s income but also distances them from any direct influence over market pricing or consumer demand.

Voices from the Industry Weigh In on the Findings

On a similar note, Rajat Tandon, President of the IVCA, remarked that the agricultural sector in India is at a pivotal moment. He pointed out that,  “India’s agri sector is at a defining moment, where tradition meets technology. What we’re witnessing isn’t just digitization, but a structural transformation driven by innovation, policy clarity, and institutions like NABARD, whose work in climate action, infrastructure, and rural innovation continues to be foundational. As private capital increasingly backs agri-tech, this report is both a reflection of progress and a roadmap for what’s possible when intent meets investment.” Their comments suggest a cautious optimism — one that acknowledges the sector’s historical challenges while also recognizing the emerging opportunities for improvement through collective effort.

Technology Isn’t Just Digital — It’s Practical and Grounded

Agricultural technology in India is often mistakenly equated only with complex digital tools. But the reality is broader—practical improvements such as efficient irrigation systems, better-quality seeds, and timely weather forecasts continue to play a crucial role in helping farmers improve outcomes.

Digital solutions, however, are steadily becoming more accessible. Mobile applications now provide farmers with localized weather updates, crop advice, and price forecasts—resources that were once hard to come by. While these tools don’t ensure higher profits or yields, they equip farmers to make better decisions.

The report highlights a gradual integration of AI, machine learning, and IoT into farming routines. These tools support informed decision-making, precise input use, and yield improvements. Startups are building platforms that offer bundled services—ranging from input sourcing and access to credit to crop marketing—with data from satellites and soil analysis feeding into customized recommendations.

Precision farming is also gaining traction. Technologies like drones, sensors, and satellite imagery are helping monitor crops and soil health, leading to timely responses to weather shifts or pest risks.

Post-harvest, technology is improving supply chain efficiency through digital logistics platforms that enhance traceability and reduce waste. Meanwhile, advancements in cold storage and warehouse systems, along with AI-driven quality checks, are helping extend shelf life and ensure fairer pricing.

Farmer-Producer Organizations (FPOs): Reshaping Collective Bargaining

FPOs have emerged as a pivotal concept in recent years. The idea is simple: help small farmers come together as collectives, so they can pool resources, negotiate better prices, and access services that would be unviable for individuals. But the execution is not always as simple.

Despite government support and increasing private interest, many FPOs remain underdeveloped. Only a small percentage operate at a scale that allows them to be financially self-sustaining. However, where they do work well, FPOs are enabling direct engagement with buyers, better pricing, and more predictable demand cycles.

Companies working with FPOs are trying to bridge the trust gap through last-mile engagement—often hiring local representatives who speak the same dialect, understand community dynamics, and can build long-term relationships.

Input as a Service: A New Approach to Farm Essentials

Inputs—seeds, fertilizers, crop protection chemicals—are essential, but their effectiveness depends on timely and appropriate use. Many agrotech companies are now shifting away from simply selling inputs to offering them as part of a larger service. This means farmers not only receive the product but also advice on how and when to use it.

What’s changing is the model: companies are moving towards subscription-based services, seasonal bundles, and even “per acre” pricing rather than “per kg” or “per litre.” This approach aligns better with how farmers actually think about their land and outputs. It also shifts the risk somewhat away from the farmer, since the service model incentivizes the provider to ensure effectiveness, not just sales volume.

Another benefit is traceability. With digital systems in place, farmers and companies can now track what was used where and when. This data is valuable not just for transparency, but also for securing better market prices, especially from institutional buyers who are increasingly quality-conscious.

Credit Access and Market Connectivity: The Twin Gaps in India’s Agro Transformation

Access to credit remains a major hurdle for Indian farmers, especially smallholders who struggle with traditional banking requirements like collateral and paperwork. Informal lenders often fill this gap but at steep interest rates. Fintech players are trying to change this with credit models based on alternative data, and some embed credit within broader services like deferred payments or advisory tools. Still, adoption is slow due to limited digital literacy and trust concerns.

Meanwhile, investment in agrotech has grown significantly. Between 2019 and 2022, private equity and venture capital in the sector grew at a CAGR of 40 percent, peaking at $1,080 million in 2021. Ground agriculture attracted nearly 80 percent of this funding, largely targeting upstream areas such as inputs, soil health, and irrigation—indicating investor confidence in core farming infrastructure.

Yet, better inputs and credit only go so far without reliable market access. Farmers have long relied on middlemen and local markets, often unaware of broader demand or price trends. This limits their earnings and bargaining power.

To bridge this gap, some companies are enabling direct market linkages. They support produce aggregation through FPOs, grading at collection centers, and sales to institutional buyers. Others use AI to assess quality and share real-time pricing. While not yet widespread, these innovations are helping farmers secure better prices and quicker payments where implemented.

The Rise of Agro-Entrepreneurs and the Push for a Connected Ecosystem

A quiet shift is happening in rural India with the emergence of agro-entrepreneurs—local individuals, not always farmers themselves, who act as vital links between agrotech companies and their communities. Armed with basic digital tools like tablets or smartphones, and trained by companies, they help deliver services such as crop advisories, input distribution, and produce aggregation. Their local presence helps build trust, making adoption of these services more seamless for farmers who often prefer guidance from someone familiar.

This model not only lowers the cost of reaching remote areas but also creates new livelihoods in villages. Over time, many of these micro-entrepreneurs evolve into informal retailers, credit facilitators, or leaders of Farmer Producer Organisations (FPOs). They form a new kind of rural workforce that merges digital know-how with deep community ties, supporting both economic and social development.

On the policy front, the Indian government is building frameworks to complement these grassroots changes. The Indian Digital Ecosystem of Agriculture (IDEA) aims to unify access to critical services like inputs, credit, and markets on a digital platform. Alongside this, Agri Stack—a digital collection of databases—is being developed to help plan interventions more effectively by giving farmers tailored insights and greater control over their operations.

These government-led initiatives are designed to reduce longstanding inefficiencies in agriculture, such as lack of timely credit and poor supply chain linkages. By combining digital tools with local knowledge and institutional support, the sector is being nudged toward a more connected and resilient future—where farmers aren’t just producers but active participants in a broader, technology-supported ecosystem.

A Measured Path – An Incremental Yet Steady March

India’s agriculture sector will not transform overnight. Rather, what’s underway is a series of deliberate, layered shifts – each quietly altering how farming is approached, financed, and rewarded. The increased role of data, the mainstreaming of agrotech, and a growing emphasis on sustainability are all signs that the sector is finding its footing in a digital economy.

The challenges are too deep, and the ecosystem too complex, for any single intervention to work in isolation. But what is happening is a growing recognition that farmers need more than products—they need services, trust, and data they can understand and act on.

The agrotech ecosystem is young and still finding its feet. There are regulatory gaps, infrastructural bottlenecks, and scalability constraints. But there is also growing momentum: from the private sector, from development institutions, and from farmers themselves who are gradually becoming more willing to experiment.

The future of Indian agriculture may not lie in dramatic breakthroughs but in thousands of small, consistent improvements—each rooted in the farmer’s reality, not abstract ideas. This quieter path, though slower, may ultimately prove more resilient.  It is more like seeds of progress sown, and while yields may not be immediate, the direction seems purposeful.