3 Reasons Why Agriculture Technology Is the Next Big Market in India
When we think of the ‘next big thing’ that will bring a massive boom to the Indian economy, we tend to think of something like the new and emerging fintech companies or perhaps the entertainment industry. But one of the greatest untapped potentials lies in the Indian agricultural sector. This is straightforward math. Think about the population of our country and think about the amount of food that’s required to suffice such a huge population. In conversation with Stockgro’s Ajay Lakhotia, his idea for which industry has the most tremendous potential in India is clearly out of the box. But so apt! Here’s why you should consider building a business in agri-tech.
1. India can win in the numbers game
Our country right now has a simple demand-supply issue. Considering India’s population, we are far behind in getting the right product to the market at the right time. Solving a nationwide supply chain issue is difficult, but there’s a lot to look forward to. We already have a robust supply of fresh produce. Our nation’s history boasts of rich and varied farming, with a majority of the population belonging to farming families. To understand the scope better, consider this example- Today, India is one of the largest e-commerce markets. To be an e-commerce customer, a minimum average income level must be maintained. On the other hand, food is something not one person can go without. Working in this industry, one can entirely jump the whole process of acquiring a consumer base.
2. We have an issue with food security
It was perceived that our issue was food scarcity for a long time. Just conducting a small field study will tell you that thousands of tons of food are wasted every hour in our country simply because we need to be made aware of the correct storage methods. We have a massive opportunity to rectify this issue keeping in mind the needs of today’s India. Especially after the pandemic, people are more concerned about maintaining health and hygiene. From where their food is coming from to what state it is in, people today are willing to pay the right price needed to get healthy food to the table.
3. Think and start small
A few years back, a young startup founder built a business around one food item- avocados. Avocados are not even that widely consumed in India. But despite not being one of the most consumed food, this entrepreneur went on to build an INR 500+ crore business. You can start with one fruit, vegetable, or even a particular street food item. If more entrepreneurs laser focus on solving one issue, slowly but steadily, this market will keep getting bigger and better as more entrepreneurs take an interest in the same.
India is the rising business star in the macro. We have been hustling since before it was cool. The number of young entrepreneurs in the country is astounding. Head to this episode of my podcast Figuring Out with Ajay Lakhotia.
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