Factors such as the increasing implementation of government initiatives to support the farmers, such as the Pradhan Mantri Krishi Sinchayee Yojana (PMSY) and Soil Health Card Scheme, and improving internet connectivity in rural areas will fuel the Indian farming as a service (FaaS) market growth during the forecast period (2021–2030). Moreover, the rising efforts made by private companies to enhance the productivity and efficiency of the agriculture sector will also contribute to market growth in the coming years. 

The launch of several government initiatives to support farmers is a prominent growth driver for the market. Central and state governments are providing security and benefits to farmers through plans such as Paramparagat Krishi Vikas Yojana (PKVY) and organizations such as the Agricultural Technology Management Agency (ATMA) to protect them from fraudulent activities. Owing to the extensive government support, the agritech market is attracting attention from private investors and numerous organizations. Additionally, the increasing government focus on improving the agricultural infrastructure and encouraging innovations in farming, such as the use of digital transactions and FaaS, is also boosting the market growth. 

Another growth driver for the Indian FaaS market is the improving internet connectivity in rural areas. Better internet connectivity can help farmers reduce their expenditure by minimizing waste production and maximizing the use of different inputs in agricultural activities, such as seeds, soil, and fertilizers. The surging penetration of internet in rural India will result in the large-scale adoption of FaaS solutions as they offer enhanced productivity and efficiency through data-driven decisions.  

In recent years, the mounting investments made in agriculture startups, to promote them, has become a prominent trend in the Indian FaaS market. The initiatives launched by the central and state governments are encouraging private entities to make hefty investments in agricultural technology startups. For instance, in 2017, Nandan Nilekani invested $4 million in RML Information Services Pvt. Ltd. Similarly, in 2021, ABC World Asia invested $20 million in Cropin Technology Solutions Pvt. Ltd. 

Report Description: https://www.psmarketresearch.com/market-analysis/india-farming-as-a-service-faas-market

The type segment of the Indian FaaS market is classified into services, farm management solutions, and market access solutions. Among these, the farm management solutions category accounted for the largest share in 2020, due to the presence of several market players, such as Deere & Company, ITC Ltd., and Mahindra and Mahindra Ltd., and hefty investments made by private and public businesses. Additionally, the rapid advancements in solutions and products for farming activities also supported the progress of this category in the market.  

Currently, the Indian FaaS market is witnessing the entry of numerous startups and micro, small, and medium enterprises (MSMEs), which are introducing a wide range of market access and farm management solutions. For instance, in February 2021, Mahindra & Mahindra Ltd. established Krish-e centers at five locations in Karnataka, to offer multiple solutions and services to farmers, such as rentals for improved farm equipment and agronomy advice. These centers are now present in all the leading agricultural states of India, such as Bihar, Madhya Pradesh, Uttar Pradesh, and Maharashtra. 

Thus, the soaring number of government initiatives for bolstering the agriculture sector and improving internet connectivity in the rural parts of India will augment the demand for FaaS solutions and services in the country in the foreseeable future. 

SOURCE: P&S Intelligence