Document Type

Working Paper

Abstract

Significant venture capital investments are being made in agricultural technology (Agtech) start-ups in India. The main benefit of a technology-based solution is its potential for scalability. However, there is also huge uncertainty about how these efforts will pan out in the future. In this study, we present a framework to understand how the Agtech sector in India is likely to evolve in the coming decades. We argue that a trust deficit issue arises due to an information asymmetry problem between producers and consumers, causing a breakdown in the market mechanism – thus, hindering the flow of investments in business opportunities in the Agtech sector. Resolving trust deficit issues is key to creating a vibrant and scalable Agtech ecosystem. More importantly, we show that a critical mass of technology investments in the digitization of the supply side of the market is required to unlock the true potential of the Agtech sector. Based on these insights, we not only develop a framework to understand what is required to accelerate growth in this sector but also present a likely road map of the future evolution of this sector.

Publication Date

1-4-2023

Publisher

Indian Institute of Management Bangalore

Relation

IIMB Working Paper-685

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