Budget 2023: FM Sitharaman announces accelerator fund to push agritech startups

Finance Minister Nirmala Sitharaman on Wednesday announced an agriculture accelerator fund to encourage agritech startups by young entrepreneurs in rural areas.

The fund will focus on bringing innovative solutions for challenges faced by farmers.

According to the Economic Survey 2022-23 tabled in Parliament on Tuesday, agritech startups have raised around Rs 6,600 crore over the last four years from private equity investors, witnessing a growth of over 50% per annum.


There are over 1,000 such agritech startups that are assisting farmers in improving farming techniques, the Survey said.

The Survey added that the there are more than 500 startups in the country “working in the millet value chains, while the Indian Institute of Millets Research has incubated 250 startups under Rashtriya Krishi Vikas Yojana – Remunerative Approaches for Agriculture and Allied Sectors Rejuvenation (RKVYRAFTAAR).”

“This (climate-smart farming) is slowly gaining acceptance with farmers using clean energy sources like solar for irrigation. The farmers have been incentivised to transfer electricity generated through solar to the local grid. Crop yield prediction models using artificial intelligence and drones for monitoring soil and crop health have been initiated,” the Survey said.

It said smart farming enables crop diversification, which will help farmers reduce their dependence on monsoons for water, adding that there are more than 1,000 agritech start-ups in India which assist farmers in improving farming techniques.