The Government of India implemented the Innovations in Technology Dissemination component of the National Agricultural Technology Project (NATP) in Punjab, Maharashtra, Jharkhand, Bihar, Orissa, Himachal Pradesh, and Andhra Pradesh to disperse advanced technologies in the agriculture sector at the district level and below. The primary aim of NATP is to decentralize decision making by creating the Agricultural Technology Management Agency (ATMA). This organization aims to strengthen research-extension-farmer linkages, improve the quality and type of technologies being dispersed, and provide an effective mechanism to manage and coordinate the work of agencies involved in technology validation and dissemination.
Government initiatives such as NATP and organizations like ATMA, which aim at improving the agricultural infrastructure by incorporating the latest technologies, are expected to steer the Indian farming as a service (FaaS) market growth during the forecast period (2021–2030). Other initiatives like Paramparagat Krishi Vikas Yojana (PKVY) also aim to facilitate the adoption of innovative and environmentally friendly agricultural technologies by the farming community to enhance productivity and improve the quality of farm produce.
Moreover, the ameliorating internet connectivity in rural areas will also facilitate the adoption of FaaS solutions and services in India. Good internet connectivity helps farmers reduce operational costs by minimizing waste and optimizing the usage of seeds, fertilizers, and soil. Owing to these benefits offered by strong internet connections, farmers are increasingly adopting FaaS solutions to achieve increased productivity and efficiency through data-driven decisions. The Telecom and Regulatory Authority of India (TRAI) states that there were 537.42 million internet users in rural India till March 31, 2021.
Categories under the type segment of the Indian farming as a service market include market access solutions, farm management solutions, and services. In 2020, the farm management solutions category held the largest market share, owing to the rapid technological advancements in products and solutions utilized for farming activities in the country. Moreover, the mounting investments being made by public and private players in the market will also contribute to the growth of the market in this category.
Companies such as Deere & Company, Em3 Agriservices Pvt. Ltd., RML Information Services Pvt. Ltd., Mahindra & Mahindra Ltd., Cropin Technology Solutions Pvt. Ltd., KhetiBuddy Agritech Private Limited, Tractors and Farm Equipment Limited (TAFE), Intello Labs Pvt. Ltd., Ulink Agritech Pvt. Ltd., Utkal Tubers India Pvt. Ltd., and ITC Ltd. offer the aforementioned solutions and services, such as utility service, labor service, and equipment rental, in pay-per-use and subscription models. These companies are gaining extensive government support and procuring hefty investments to develop innovative farm technologies.
According to P&S Intelligence, many startups and micro, small, and medium enterprises (MSMEs) have recently entered the Indian farming as a service market. In recent years, MSMEs and agritech startups have focused on product launches to gain a competitive edge. For example, in June 2020, KhetiBuddy Agritech Private Limited unveiled a free mobile app to offer farm management solutions to the agrarian community of India. This novel application helps farmers manage sowing, harvesting, and several other farming activities. It uses localized information to guide farmers in customizing the crop schedule based on inventory data, weather, and soil data.
Therefore, the increasing number of government initiatives encouraging the adoption and development of agritech solutions, and the improving internet connectivity are expected to facilitate the adoption of FaaS solutions in India.