07 February 2025 : Daily Answer Writing
Q1) Examine the impact of Disruptive Agricultural Technologies on agricultural sector in India and mention the support mechanisms needed to foster the growth of agtech start-ups in this space.(150 Words/10 Marks)
Answer:
Disruptive technology is an innovation that dramatically changes how consumers, industries, or businesses function. Disruptive Agricultural Technologies (DATs) have had a profound impact on the agricultural sector in India, influencing various aspects from productivity to sustainability.
Impact of Disruptive Agricultural Technology (DATs) on agricultural sector:
- Technologies such as surveillance and smart irrigation systems – potential to transform the industry, + precision agriculture and drone-based monitoring of crops.
- According to the Niti Aayog, AI in agriculture is expected to grow at a rate of 22.5 per cent CAGR, and is likely to be valued at $2.6 billion by 2025
- One of the biggest advantages of DAT is its ability to provide real-time information to farmers about their crops. E.g., sensors can be used to measure soil moisture levels, allowing farmers to better irrigate their crops.
- reduces water consumption + increases productivity and quality
- Precision farming techniques can increase fertilizer use efficiency, reduce waste, and improve soil health.
- Technology platforms and start-ups can directly connect farmers and retailers, reducing waste and increasing profits for both parties [e.g., NinjaCart] + fintech companies can increase finance accessibility.
- Big data analytics allows for aggregation and analysis of vast amounts of data enabling better predictability in crop yields, outbreaks, etc. (b) AI and machine learning have enabled predictive analysis and automated decision-making.
Support Mechanism Required for Agritech Start-Ups:
- Funding: (a) major challenge is the high initial costs and hesitancy of venture capitalists to invest in Agritech startups; (b) the government should setup a dedicated start-up fund for this sector; (c) tax incentives for venture capital investing in Agritech sector.
- Infrastructure: (a) setting up start-up incubators to provide essential resources, mentorship, networking opportunities, and industry expertise; (b) setting up government R&D facilities to support start-ups; (c) consolidation of fragmented landholdings through digitisation; (d) enabling access to internet and enhancing digital literacy.
- Market Access: (a) supporting start-up digital platforms through subsidies, thereby reducing costs for the portal and producer; (b) supporting start-ups in export promotion domain.
- Policy: (a) forming policies to promote innovation and entrepreneurship; (b) reduce red-tapism and bureaucratic hurdles; (c) simplifying regulations around biotechnology and drone use; (d) strengthening intellectual property protection.
For more such UPSC related Mains Answer Writing, Check Out – 6 February 2025 : Daily Answer Writing
