Here’s How IoT Develops AgriTech Sector
Agriculture sector plays a significant role in India’s economy. In contrast with the global agrarian economy, the country’s economy contributes 16 per cent to GDP. The sector’s contribution to the GDP has declined from 17.5 per cent in 2015 to 16 per cent now. Despite this, it is counted as the ninth largest exporter in the country.
According to a report by Nasscom, $42 billion agriculture output is created presently while the sector is expected to produce $60 billion by 2025. With the passing time, the agriculture sector is introducing higher outputs by deploying costlier input resources, even though, Indian consumers face scarcity in outputs. In the period 2010-2019, agriculture inputs have either flattened or become very costly along with farmer investible surplus has decreased although agriculture output, as well as consumption, have persistently increased.
The report unveiled that various regions generated high agriculture outputs. These regions mainly focused on maintaining a minimum viable farm size, sustainable crop mix to suit local demand and farm productivity, and use of tractors and irrigation techniques, have yielded higher outputs and superior margins.
Adopting IoT in Agriculture Sector
A three times growth is witnessed in global agriculture after embracing and implementing IoT. Therefore, IoT also has the potential to change the agriculture value chain. Some of its advantages are :
Firstly, there is the development of the economics of IoT in agriculture. A decline of 70 per cent sensor cost is witnessed from $1.3 in 2004 to $0.4 in 2019. At present, there are over 3,000 agricultural startups globally, including more than 450 Indian agri startups. Additionally, 1.3 per cent increase in agritech funding is observed specially in preharvest farm robotics & software, sensors, IoT.
Secondly, IoT solutions have become highly effective. It aids in more sensitive and accurate tracking. It leads to tech convergence with edge and data analytics. It also enables diverse solutions and convergence.
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