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A Journal on Rural Development Vol. 72 | No. 3 | Pages 52 | January 2024 Contents CHIEF EDITOR Manogyan Rani Pal Redefining Rural Landscapes Startups Paving the Way for Inclusive Development EDITOR Shiela Chaudhary Rohit Gupta Ashish Pandey JOINT DIRECTOR (PRODUCTION) D.K.C. Hrudhainath COVER...

A Journal on Rural Development Vol. 72 | No. 3 | Pages 52 | January 2024 Contents CHIEF EDITOR Manogyan Rani Pal Redefining Rural Landscapes Startups Paving the Way for Inclusive Development EDITOR Shiela Chaudhary Rohit Gupta Ashish Pandey JOINT DIRECTOR (PRODUCTION) D.K.C. Hrudhainath COVER DESIGN Rajender Kumar EDITORIAL OFFICE Room No. 653, Publications Division, Soochna Bhawan, C.G.O. Complex, Lodhi Road, New Delhi-110003 Phone : 011-24362859 Email : [email protected] For Subscription Enquiries, Grievances, Renewals and Agency Information, Please Contact: Journals Unit Publications Division, Room No. 779, Soochna Bhawan, C.G.O. Complex, Lodhi Road, New Delhi-110 003 (Monday-Friday, 9:30 AM-6:00 PM) Phone : 24367453, FAX: 24365610 Email : [email protected] Website : publicationsdivision.nic.in Reform, Perform & Transform through Agri-Startups Redefining Food Processing Sector through Startups Startups Towards Rural Water Security Startups as the Engine of Growth for North-East India 24 11 30 Dr. Sriparna B Baruah Balendu Sharma Dadhich For Online Sale, please log on to bharatkosh.gov.in/product, and for e-books, please visit Google Play or Amazon. Championing Social Startups for Rural Development Subscription 1 Year : ` 230 Wase Khalid Priyatam Yasaswi The readers are requested to verify the claims in the advertisements regarding career guidance books/institutions. Kurukshetra does not own responsibility. Maps used are for illustration & study purpose and may not strictly conform to the official map. Images, graphics and illustrations, wherever used, are mostly sourced from government channels and are indicative in nature. Final Editing rights will vest with Kurukshetra Team. 18 Arunlal K. @dpd_India The views expressed by the authors in the articles are their own. They do not necessarily reflect the views of the Government or the organisations they work for. 5 Dr. Ishita G. Tripathy @DPD_India Kurukshetra seeks to carry the message of Rural Development to all people. It serves as a forum for free, frank and serious discussion on the problems of Rural Development with special focus on Rural Uplift. 11 Shreya Anand and Dr. Souvik Ghosh Drone Revolution Changing the Face of Rural India @publicationsdivision 5 Supporting Women-led Startups B S Purkyastha 34 34 39 44 44 Sales Emporia :  Delhi - BM (I/c), Publications Division, CGO Complex, Soochna Bhavan, Lodhi Road, New Delhi-110003 (011-24365609); Hall No. 196, Old Secretariat, Delhi 110054 (011-23890205)  Kolkata - 8, Esplanade East, Kolkata-700069 (033-22482576)  Mumbai - 701, C-Wing, 7 th Floor, Kendriya Sadan, Belapur, Navi Mumbai-400614 (022-27570686)  Chennai - ‘A’ Wing, Rajaji Bhawan, Besant Nagar, Chennai - 600090 (044-24917673)  Thiruvananthapuram - Press Road, Near Govt. Press, Thiruvananthpuram - 6950001 (0471-2330650)  Hyderabad - Room No. 204, 2nd Floor, C.G.O. Towers, Kavadiguda, Hyderabad-500080 (040-27535383)  Bengaluru - Floor, ‘F’ Wing, Kendriya Sadan, Koramangala, Bengaluru 560034 (080-25537244)  Patna - Bihar State Co-operative, Bank Building, Ashoka Rajpath, Patna-800004 (0612-2675823)  Lucknow - Hall No. 1, 2nd Floor, Kendriya Bhawan, sector – H, Aliganj, Lucknow - 226024 (0522-2325455)  Ahmedabad - Sales Unit, Publications Division, 4-C, Neptune Tower, 4th Floor, Nr HP Petrol Pump, Nehru Bridge Corner, Ashram Road, Ahmedabad Gujarat -380009 (079-26588669) The startups are an exemplar that great things are done by a series of small things brought together. The pulse of innovation in a country teeming with entrepreneurial fervor beats much beyond its urban boundaries. Entrepreneurs are fostering a revolution not only in urban areas but also in rural India's heartlands. The new wave of entrepreneurs and startups has taken upon themselves to lead the way for transforming the Rural India. This transformation, rooted in innovation and resilience, is shaping the contours of progress, underscoring the theme: Startups - Redefining Rural India. The article ‘Reform, Perform & Transform through Agri-Startups’ explains how in the realm of Indian agriculture, startups emerge as beacons of hope for farmers facing challenges. The authors provide insight about the rising proliferation of Agri-Startups and their potentialities in leverage technology and instigate positive reforms. This comprehensive article further discusses about the Government’s proactive policies in Rural India fostering the growth and spirit of entrepreneurship. The food processing sector is extremely vital for an agrarian country like India. The article ‘Redefining Food Processing Sector through Startups’ endeavours to evaluate the growth chart of the food processing sector in India and the enhanced contribution of startups to this growth story. The author emphasises that for startups in the food processing sector to flourish, backward linkages with agriculture, fisheries, dairying, animal husbandry, etc. need to be strong. This issue of Kurukshetra also delves into the inspiring narratives of startups that are not only thriving but also actively contributing to the transformation of rural India in the articles, ‘Startups: Towards Rural Water Security’ and ‘Championing Social Startups for Rural Development’. These articles examine that there has been a surge in the number of commercial and social enterprises addressing rural India's concerns. Drones are making headlines for various reasons, including their potential to revolutionise Indian agriculture and rural economies. The author of the article ‘Drone Revolution: Changing the Face of Rural India’ elaborates how the Government is actively promoting a drone culture nationwide, and the field is witnessing remarkable innovations, ranging from cost-effectiveness to enhanced manageability and multipurpose functionality. India is about to witness a drone revolution that might change the rural economy and have a significant positive influence on millions of lives. It becomes evident as we read through these insightful articles from subject experts that entrepreneurs are not only the agents of change but also the designers of a more promising and inclusive future for rural India. Come celebrate with us the spirit of entrepreneurship that is redefining the fundamental fabric of rural life. With this issue, we wish our readers a very happy and prosperous 2024. Happy reading. Redefining Rural Landscapes Startups Paving the Way for Inclusive Development Riding on the digitisation wave, India has seen growth in startups catering to rural needs. With a customer base of 100 crore, rural India presents a massive opportunity for startups, especially in sectors like agritech, food processing, edtech, skill development, e-commerce, health-tech, renewable energy, handicrafts and traditional arts, and fintech. * Rohit Gupta ** Ashish Pandey S tartup ecosystem of India has witnessed remarkable growth in the recent years, with a surge in innovative ventures addressing diverse challenges. India is rd the 3 largest startup ecosystem in the world, with more than 1 lakh registered startups (DPIIT – Startup India). Traditionally centered in urban hubs, the startup culture is now permeating the hinterlands, ushering in a new era of innovation and economic transformation. This phenomenon reflects a broader trend of decentralisation and inclusivity, where startups are leveraging technology to bridge the rural-urban divide. The current scenario witnesses a surge in startups catering to rural needs, ranging from agritech and e-commerce platforms to healthcare and education services tailored for rural communities. These ventures not only address local challenges but also create employment opportunities, fostering sustainable development. The startup ecosystem as a whole, especially in rural areas, has seen unprecedented * The author is Program Director at Atal Innovation Mission, NITI Aayog, Government of India. Email: [email protected] ** The author is Young Professional Kurukshetra January 2024 at Atal Innovation Mission, NITI Aayog, Government of India. Email: [email protected] 5 growth with a big Government push since 2014, when the government launched schemes like Startup India, Atal Innovation Mission (AIM), MeitY Startup Hub (MSH), BIRAC, and DST-supported schemes, among others. Many schemes were curated, especially to encourage rural entrepreneurship. Some of these schemes are listed below: 1. Atal Community Innovation Centres (under Atal Innovation Mission) – AIM’s ACIC initiative was launched in 2020, with the objective of creating community innovation centres for rural entrepreneurs. The initiative encourages grassroots innovation and directly supports community-based entrepreneurs by establishing enabling infrastructure in Academic Institutions and NGOs. Till now, AIM has established 14 ACICs across the country that have cumulatively supported more than 200 community-based startups. 2. Start-up Village Entrepreneurship Programme – Ministry of Rural Development is implementing Startup Village Entrepreneurship Programme (SVEP) as a sub-scheme under the DAY-NRLM with the objective of helping the rural poor to set-up enterprises at the village level in non-agricultural sectors. A total of 1,97,168 enterprises across 23 States/UTs have been supported so far. 3. Skill India Mission – Under this mission, Ministry of Skill Development and Entrepreneurship (MSDE) has been delivering skills through various schemes viz. the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and the National Apprenticeship Promotion Scheme (NAPS), among others, majorly to rural youths across the country. Third party evaluations of these schemes have shown that 70.5% of PMKVY 2.0 beneficiaries (2016-20) received placement in their desired skill sector. 4. ASPIRE – The scheme implemented by Ministry of MSME aims to provide training and incubation support to prospective entrepreneurs in agro-rural sector through Livelihood Business Incubators (LBIs). As of FY 2022, 61 LBIs have become functional in the country. A total of 54,801 people have been trained in LBIs across the country, out of which 15169 trainees became self-employed and 8928 trainees got employed in other entities. 6 Startsups in Rural India Life away from Metros More than 100 crore Indians, or around 65% of India, live in rural areas. A total of 63% of workers in rural areas are self-employed, 1.6 times that of urban areas, mostly in agriculture and allied sectors. This aspect defines the rural community and has huge significance in the rural way of life. The challenge for startups is to understand the intrinsic values of rural India and make products and solutions that build trust among the people, cater to their needs and aspirations, while simultaneously creating employment opportunities for them. While branding and marketing may work for startups in urban areas, trust and word-of-mouth publicity have always worked better for established companies and may hold true for startups operating in rural India as well. Role of Digitisation Internet penetration and data accessibility have a huge role to play in developing startup ecosystems. India has one of the cheapest data rates in the world (USD 0.17 for 1 GB). Over 50% of Indians are internet users, out of which around 40 crore people reside in rural areas . By 2025, India will have 90 crore active internet users, and 56% of the new internet users will be from rural areas. Every farmer added to the digital ecosystem presents an opportunity for the application of new agri-based solutions; every ruralbased resident added presents an opportunity for financial inclusion; and every Tier 2/3 city resident added presents an opportunity for e-governance and e-commerce platforms. The digitisation of rural areas has been bolstered with government schemes like BharatNet, Common Service Centers (CSCs), Digital India Campaign, Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGdisha), and Digital Finance for Rural India, along with a vibrant private telecom sector. Riding on the digitisation wave, India has seen growth in startups catering to rural needs. With a customer base of 100 crore, rural India presents a massive opportunity for startups, especially in sectors like agritech, food processing, edtech, skill development, e-commerce, health-tech, renewable energy, handicrafts and traditional arts, and fintech. Kurukshetra January 2024 Types of Rural Startups Founders based in urban areas with solutions catering to rural areas: In this category, startups are founded by individuals from urban areas who identify and address the unique challenges faced by rural communities. These entrepreneurs leverage their urban upbringing, access to resources, and exposure to technology to create innovative solutions tailored to rural needs. This approach often involves bridging the gap between urban and rural lifestyles by introducing technology-driven initiatives in areas such as agriculture, healthcare, education, and infrastructure. Examples include online platforms connecting farmers with markets, telemedicine services, and digital learning solutions for rural students. The key trait of these startups is that they tend to disrupt an organised industry and bring efficiency to traditional processes. Founders belonging to rural areas with solutions catering to rural areas: Startups in this category are founded by individuals who have a deep understanding of rural life, having grown up in rural areas themselves. These entrepreneurs leverage their firsthand knowledge of local challenges, cultural nuances, and community dynamics to develop solutions that resonate with and directly address the needs of rural populations. Their solutions are often rooted in a deep appreciation for local traditions and sustainable practices. Examples may include ventures focused on agricultural innovations, rural craft preservation, and communitycentric initiatives that enhance the overall quality of life in rural areas. The key trait of these startups is that they aim at improving earning of rural households, giving them visibility on national and global platforms through increased market access. Self-Help Groups: Self-help groups (SHGs) represent a unique form of rural entrepreneurship, where individuals within a community come together to create a collective entity. These groups pool their resources, skills, and talents to initiate incomegenerating activities and address common challenges. SHGs often focus on activities like handicrafts, smallscale agriculture, and micro-enterprises. Startups emerging from SHGs can be collaborative in nature, with a shared sense of responsibility and a focus on community development. The emphasis is on empowering individuals within the group to uplift the entire community economically and socially. Anand Kurukshetra January 2024 Milk Union Ltd. (AMUL) is one of the most successful enterprise built on this model. Micro, Small, and Medium Enterprises (MSMEs): MSMEs in rural areas encompass a diverse range of enterprises, including manufacturing, services, and trading. These enterprises are characterised by their relatively smaller scale and localised operations, catering to the specific demands of rural markets and also unlocking larger markets through economies of scale. MSMEs contribute significantly to employment generation and economic development in rural areas. They often focus on preserving local craftsmanship, promoting indigenous products, and providing essential services to the community. In India, over 6.3 crore MSMEs are estimated, out of which more than 50% are in rural areas . Challenges for Rural Startups 1. Connectivity with Suppliers in Urban Areas: Rural startups often face challenges in establishing seamless connectivity with suppliers, partners, and other stakeholders based in urban areas. Limited infrastructure, including transportation and communication networks, can hinder the efficient flow of goods and services. This connectivity gap may result in delays, increased costs, and logistical complexities for rural startups, impacting their overall operational efficiency. 2. Access to Financing: Access to reliable and affordable financing remains a significant hurdle for rural startups. Financial institutions may be hesitant to invest in ventures located in remote areas, citing higher perceived risks and a lack of traditional collateral. The limited availability of banking services in rural regions exacerbates the challenge, making it difficult for startups to secure the necessary capital for business expansion, technology adoption, and infrastructure development. 3. Lack of Support System and Ecosystem in Rural India for Startups: Despite various rural entrepreneurship enabling schemes introduced by the Government of India in the last decade, there remains ample room for improvement in establishing the essential support structure and ecosystem for the development of rural startups. The absence/lack of mentorship, networking 7 opportunities, and incubation centres can impede the growth of rural startups. The dearth of experienced mentors and business incubators in proximity makes it challenging for entrepreneurs to receive guidance, access resources, and navigate the complexities of scaling a startup in rural India. Difficulty in Finding Early Adopters in Rural Areas: Identifying and convincing early adopters is a critical phase for any startup. In rural areas, the challenge is amplified due to limited communication channels, lower income, and lower digital penetration. The traditional methods of brand communication such as word-of-mouth, community engagement, and local events become crucial. 4. 5. Limited Funding Mechanism in Rural Areas: Despite gaining a customer base in rural areas, startups struggle with a virtually non-existent funding mechanism locally. The disparity is noticeable in the concentration of startup funding primarily within major urban centres such as Bangalore, Delhi, and Mumbai, collectively accounting for 92% of startup funding over the past nine years. Investors and venture capitalists tend to be concentrated in these urban centres, creating a significant gap for rural startups. This geographical imbalance limits the growth potential of rural startups, hindering their ability to scale operations and compete on a broader scale. This also leads to multiple rural startups with bright founders migrating to the bigger urban centres. Important Startup Sectors in Rural Areas S.No. 1. Startup Sector Agritech Importance for Rural Areas • • • 2. Food Processing • • • 3. E-commerce • • Food Processing startups like Intello Labs add value to raw agricultural produce, creating marketable products, and reducing post-harvest losses. Processing enhances the quality and shelf life of products, especially for crops like millets, thus expanding their market reach. Startups like Millet Magic, Slurrp Farm, and Millet Amma are actively working in this sector, encouraging farmers to shift from traditional cereals to millets. E-commerce platforms provide rural businesses access to a larger customer base, boosting sales and income. Startups like Meesho have partnered with M/o Rural Development to sell products of SHGs under NRLM on its platform. 4. Edtech & Skill Development • EdTech startups like Learning Delight, Hippocampus Learning Centres, Sudiksha Knowledge Solutions, Paathshala Learning Solutions, and Classle bring education in local languages to remote areas through digital platforms, addressing the rural-urban education divide. 5. Health-tech • Health-tech startups like Medyseva, Gramin Health Care, Blackfrog Technologies, AI Health Highway, Hesa, and DigiQure offer remote consultations, overcoming the lack of healthcare infrastructure in rural areas. These startups provide health education and awareness programmes, addressing preventive healthcare. • 6. Renewable Energy • • 8 Agritech startups leverage technology for precision farming, optimising resource use and increasing yields. Prominent examples include Fasal and BigHaat, which use artificial intelligence and data analytics for providing valuable information to the farmers. SaaS based agritech startups like Ninjacart, DeHaat, and Cropin connect farmers directly with buyers/retailers/storage facilities, reducing dependence on intermediaries and ensuring fair prices. Other agritech startups like Khetigaadi provide platforms where one can buy, sell, rent, compare, and review conventional farm machinery. Startups like AgriVijay provide renewable energy products for farmers and rural households offering range of products, including solar, biogas, electric, hydro, and wind energy. Startups like Agringenium Innovations Pvt. Ltd. are harnessing agricultural waste for clean energy production, reducing dependence on traditional energy sources. Kurukshetra January 2024 S.No. Startup Sector 7. Handicrafts and Traditional Arts Importance for Rural Areas • • 8. FinTech • • Startups in this sector contribute to preserving and promoting traditional crafts and arts. These startups also attract tourists, fostering cultural exchange, and economic growth. Startups like Peetal, Shilpkaari and ThinkGudd provide training torural artisans, expanding their customer base and increasing income. FinTech startups facilitate digital banking and financial services, ensuring banking access for rural populations. Examples include startups like Aye Finance, BankSathi, BharatPe, KhataBook, and Propelld, which are revolutionising access to financial services through online banking, offering a range of services such as investment platforms, Aadhaar Enabled Payment System (AEPS), digital ledger apps, and digital payment solutions. Disclaimer: Atal Innovation Mission does not endorse any of the mentioned startups. The names are provided based on research and the success stories within the AIM ecosystem. Atal Innovation Mission’s Rural Startups Support Ecosystem – At a Glance Established Incubation Centre Atal Community Innovation Centre Access Livelihoods - promoting women entrepreneurship and digital financial inclusion in North Karnataka KL Startups Foundation conducting a Capacity Building Program on Crafts & Decors in a village in Krishna District, Andhra Pradesh Atal Incubation Centre Conclusion Migration of startups from rural areas / Tier 2 and Tier 3 cities to innovation hubs is an inevitable phenomenon, and while it cannot be entirely prevented, the key lies in establishing an enabling innovation ecosystem in rural areas. This ecosystem is crucial for sustaining early-stage challenges and overcoming the valleys of death that startups often face. The trajectory Artisans being trained on social media skills by AIC-Catalyst incubated startup ThinkGudd Kurukshetra January 2024 of a rural startup may not align with the conventional path to becoming unicorns. However, their significance lies in their potential to evolve into sustainable enterprises, which generate employment opportunities and align with the broader vision of Viksit Bharat. Therefore, fostering an environment that supports and nurtures the growth of startups, particularly in rural areas, becomes imperative for realising the USD 10 Trillion milestone by the year 2030.  9 Reform Perform & Transform through Agri-Startups The agricultural domain, encompassing crops, livestock, and fisheries, has experienced the emergence of numerous startups commonly referred to as ‘agri-startups’. Enablers such as Incubators and Accelerators play a crucial role as key partners within the broader startup ecosystem, supporting and expediting the successful development of businesses. The Union Budget 2023 demonstrated a commitment to supporting agri-startups through increased allocations and targeted measures in the creation of rural infrastructure and development of agriculture and allied sector. S Shreya Anand and Dr. Souvik Ghosh tartups are crucial in driving innovation, representing companies, partnerships, or temporary organisations specifically crafted to explore viable and scalable business models. During the startup phase, novel concepts are introduced to the market, evolving into economically sustainable enterprises. These newly established firms serve as vehicles for translating entrepreneurial insights into profitability. In the global context, the success of startups hinges on innovation as a fundamental cornerstone. India has earned a prominent position according to the established number of startups in the global startup community, ranking among the top five countries worldwide. An essential goal pursued by the Indian Government via its prominent ‘Startup India’ initiative is to integrate the Indian startup ecosystem with global counterparts, employing diverse engagement models. In 2021, India experienced the development of 46 unicorns (denoting new companies valued at $1 billion or more), positioning The authors are Doctoral Scholar and Professor, respectively, at the Department of Agricultural Extension, Palli Siksha Bhavana (Institute of Agriculture), Visva-Bharati (A Central University), Sriniketan, Birbhum. Email:[email protected]; [email protected] Kurukshetra January 2024 11 India as the third-largest unicorn hub globally, with a total of 90 unicorns, behind only the USA and China. In the realm of Indian agriculture, startups emerge as beacons of hope for farmers facing challenges. A new generation of entrepreneurs and startups has undertaken the commendable mission of transforming India's agricultural sector through technological advancements. With the goal of increasing farmers' income, the Government of India consistently seeks avenues to enhance agricultural production, food processing, and marketing by integrating cutting-edge technologies and innovations. This initiative presents substantial prospects for food and agricultural startups in the nation. Regarding the establishment of a startup ecosystem in agriculture and related sectors in India, a total of 799 startups were ultimately selected by different Knowledge Partners (KPs) and Agribusiness Incubators (R-ABIs) as of January 2022, and by December 2022, their count had increased to 1055 startups. The Department of Agriculture and Farmers Welfare (DA&FW) has released Rs. 6317.91 lakh as grants-in-aid in instalments to the relevant KPs and R-ABIs until December 2022, up from Rs. 3790.11 lakh in January 2022 (MoA&FW, GOI, 2022). Potentialities of Agri-Startups Agriculture stands as a crucial pillar in the foundation of the Indian economy. Around 55% of the Indian population relies directly on agriculture (Census 2011), contributing around 18% to the GDP (MoA&FW, 2023a). While the agricultural sector has witnessed steady growth in recent years, the transformative shift began in recent years with the rise of startups, prompting young entrepreneurs to leave traditional roles in multinational corporations to establish their own ventures. These pioneers recognise that investing in agriculture is among the most secure and profitable business avenues. As a critical component of the economy, agriculture continually demands attention, and the need for agricultural products is anticipated to persist. A surge of budding entrepreneurs and emerging startups in the country is leading the charge in agricultural sectoral growth. Their mission is to leverage technology and instigate positive reforms. The pivotal questions at hand are whether technology can truly revolutionise the sector and why these entrepreneurs and startups are choosing to do so now. 12 Thus, agricultural practices have been successfully transformed through a diverse array of technologies, including hybrid seeds, precision farming, artificial intelligence, geo-tagging and satellite monitoring, big data analytics, mobile apps, and farm management software that can be applied at every stage of the agricultural process to enhance productivity and increase farm incomes. Reforms Facilitating Startups India has actively fostered a vibrant startup ecosystem. The Government of India, recognising the potential of startups, has undertaken initiatives to nurture this ecosystem and positioned India as a nation of job creators rather than job seekers. Through various policies and interventions, the Government aims to empower startups, fostering innovation, design, and the rapid expansion of the startup movement. The impact of national startup policies is becoming evident on the ground, with multiple supportive measures in place to facilitate the early takeoff and successful operations of startups. Government's Proactive Policies to Empower Startups Make in India: This initiative was launched in September 2014, and it aims to position India as a global design and manufacturing hub. Through modern and user-friendly approaches, it has led a substantial overhaul, attracting investments, promoting innovation, developing skills, safeguarding intellectual property, and establishing advanced manufacturing infrastructure. Startup India: In January 2016, the introduction of a 19-point ‘Startup India Action Plan’ resulted in the execution of numerous policy initiatives aimed at establishing a strong ecosystem to boost innovation, foster startup growth, and generate employment opportunities. This initiative significantly contributed to a notable increase in the establishment of new companies showcasing innovative ideas across various sectors. The focus of this initiative is on simplification, funding support, incentives, and promoting industryacademia partnerships and incubation for sustainable economic development. Atal Innovation Mission (AIM): It reflects the Indian Government's commitment to fostering Kurukshetra January 2024 innovation and entrepreneurship. Since its initiation in 2016, it has been catalysing the development of innovation hubs, address grand challenges, nurture startups, and promote self-employment in technologydriven sectors. AIM consists of two main components, viz., Entrepreneurship Promotion through SelfEmployment and Talent Utilization (SETU), and Innovation Promotion, developing a platform for generating innovative ideas. AIM provides a grant-inaid of Rs. 10 crore to each Atal Incubation Centre for five years, covering both capital and operational expenses. NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC): NewGen IEDC has a mission to ‘promote knowledge based and technology-driven startups by harnessing young minds and their innovation potential in an academic environment’. This programme is launched by the National Science and Technology Entrepreneurship Development Board (NSTEDB), Department of Science & Technology (DST), GOI in 2017. It supports up to 20 new projects annually within educational institutions by providing one-time financial aid, capped at Rs. 25 lakh. Innovation & Agri-Entrepreneurship Programme: In 2018-19, Rastriya Krishi Vikas Yojana (RKVY-RAFTAAR) established a new programme named "Innovation and Agri-Entrepreneurship Development" with the goal of promoting innovation and agri-entrepreneurship by giving financial support and cultivating the incubation ecosystem. Startups in agriculture and related areas are encouraged to contribute directly and indirectly to increasing farmers’ income by providing chances and jobs to young people. This Department has appointed five (5) Knowledge Partners (KPs) and 24 Agribusiness Incubators (R-ABIs) to advise on the smooth and effective implementation of this initiative across the country. Approximately 3500 entrepreneurs have been taught under the agri-entrepreneurship initiative from 2019-20 to 2022-23 (as of 31 December 2022). 1102 startups in agriculture and allied sectors have received financial assistance because of these skilled entrepreneurs. An amount of Rs. 66.83 crore is released in instalments for startup finance to the relevant KPs and RABIs (MoA&FW, 2023b). Numerous agri-tech startups in India predominantly operate in the marketplace segment, where e-commerce companies offer fresh and organic produce sourced directly from farmers. Agri-tech encompasses the Kurukshetra January 2024 application of contemporary technologies in the agricultural sector to elevate crop yields, operational efficiency, and overall revenue. This concept encompasses a broad spectrum, including applications, practices, products, and services that enhance various facets of the agricultural process, whether related to input functions or the final output. Recently, a surge of startups has emerged, introducing innovative and sustainable solutions to address challenges faced by farmers. These solutions encompass biogas plants, solar-powered cold storage, fencing and water pumping systems, weather prediction tools, spraying machines, seed drills, and vertical farming methods. The evolving landscape of agri-tech holds the potential to tackle various issues within the agricultural sector and reshape the trajectory of Indian agriculture. The increasing use of the internet, widespread smartphone penetration, the rise of startups, and Government initiatives in rural areas are facilitating the adoption of technology in farming. Rising Proliferation of Agri-Startups The agricultural domain, encompassing crops, livestock, and fisheries, has experienced the emergence of numerous startups commonly referred to as ‘agri-startups’. These ventures are further classified based on their specific focus areas, such as agritech, fisheries, dairy farming, animal husbandry, food processing, organic agriculture, and more. Similarly, they are categorised according to their developmental stages: Ideation, Validation, Early Traction, and Scaling (NAAS, 2022). Over the past few years, a wave of agritech startups has surfaced in India, aiming to resolve issues such as marketing linkage, supply chain, use of outdated equipment, insufficient infrastructure, and limited access to diverse markets for farmers. Notably, advancements in marketing infrastructure have been introduced, addressing these challenges and poised to transform the agricultural sector in India, ultimately contributing to increased incomes for farmers. The Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry (MoC&I), GoI has acknowledged 58,650 startups as on 10 November 2021. Addressing the issues and obstacles in agricultural progress, numerous startups have played a crucial role in bridging gaps within agri-food value chains. Presently, there are 7,241 agri-startups, with the DPIIT officially acknowledging 2,605 of them. Additionally, there are 2,594 startups 13 operating in the food and beverage industry (NAAS, 2022). Among the recognised agri-startups, there are currently 1,485 agri-tech startups, with 474 dedicated to organic agriculture, 1,774 in food processing, 48 in horticulture, 130 in animal husbandry and dairying, 22 in fisheries, and 74 engaging in a combination of these activities (Startup India, 2021; NAAS, 2022). The Startup India initiative aims to develop a healthy startup ecosystem in the country to foster innovation and provide chances to aspiring entrepreneurs. Since 2018, the DPIIT of MoC&I, has been conducting the States' Start-up Ranking Exercise. Karnataka and Maharashtra collectively contribute nearly 50% of all agri-tech startups established in the past five years (NAAS, 2022). Bengaluru (Karnataka) is a well-established hub, alongside Mumbai and Delhi & NCR, constituting 25%, 21%, and 14%, respectively, of the total presence of tech-startups in India (GSER, 2018). Similar trends are evident in the agri-tech startup domain, where these three established ecosystem hubs dominate, contributing to over 50% of startups in India. These leading hubs are trailed by Haryana (8%), Tamil Nadu (7%), and Gujarat (7%). Noteworthy is Gujarat's status as the ‘best-performing state’ in the Indian startup ecosystem, despite holding only 7% share in agri-tech startups (DIPP, MoC, 2018). According to the ranking of states on support to startup ecosystems, Gujarat and Karnataka emerged as the best performers (MoC&I, 2022). Agri-tech startups are sprouting up in other states as well. For example, Daybest Research Private Limited, a Chhatisgarh-based startup, has created KRISHAKTI, a fully autonomous, high-precision-enabled spraying drone with an auto-adjusting nozzle and sprinkling system for spraying various types of liquid fertilisers, pesticides, herbicides, and insecticides. The startup is striving to solve the problem of crop loss caused by biotic and abiotic stress, and excessive pesticide use. Over two lakh farmers have benefited from this startup so far, and it is currently employing 243 people (MoA&FW, 2023b). Ecosystem Supporting Incubators/Accelerators Agri-tech Startups: Enablers such as Incubators and Accelerators play a crucial role as key partners within the broader startup 14 ecosystem, supporting and expediting the successful development of businesses. In the agri-tech startup ecosystem, it is imperative for accelerators, incubators, and mentors, in conjunction with well-defined policies and schemes, to collaborate closely with startups. This collaboration aims to provide optimal technical support and minimise the gestation period of these ventures. Beyond addressing existing knowledge, digital, and financial gaps in the target demographic (i.e., farmers), agri-tech startups also encounter challenges related to people, processes, and technology. Few important accelerators and incubators supporting the agri-tech sector in India are indicated below: a-IDEA: It is an agriculture-focused Technology Business Incubator (TBI) of the National Academy of Agricultural Research Management, Hyderabad (ICAR-NAARM), founded in 2014 and funded by the Government of India's Department of Science and Technology (DST). Through capacity building, mentorship, networking, and advisory support, a-IDEA strives to assist agri-preneurs in ideating, incubating, and accelerating their unique early-stage enterprises that are scalable to become competitive food and agribusiness ventures. AGRI UDAAN: It is India's first Food & Agribusiness accelerator, launched by NAARM, a-IDEA, and CIIEIIM(A) in 2015, has made a significant impact. Focus areas include sustainable inputs, precision/smart agriculture, innovative food technology, and supply chain technology. Notable incubatees include Gen Agri-tech, Delmos Research, Agricx, Intello Labs, Smoodies, Jivabhumi, and others. It has mentored 100+ startups, accelerated 38 startups, and raised 117 crore investment (a-IDEA, 2023). Centre for Innovation, Incubation and Entrepreneurship (CIIE): CIIE, originating from IIM Ahmedabad, is a driving force in innovation-driven entrepreneurship in India. It enables and activates startup ecosystems in several Indian locations. Its mission is to help and foster early-stage entrepreneurs by growing the startup ecosystem through partnerships, mentorship, funding, and collaborations. Notably, CIIE collaborates with a-IDEA, the business incubator at the NAARM, Hyderabad to launch a food and agribusiness accelerator. Kurukshetra January 2024 International Crops Research Institute for the Semi-Arid Tropics (ICRISAT): Partnered with the DST to establish an agribusiness incubator (ABI) with the support of DST's National Science and Technology Entrepreneurship Development Board. ABI fosters technology development and commercialisation through public-private partnerships. ICRISAT's Innovation Hub (iHub) serves as a collaborative platform for agricultural tech entrepreneurs, scientists, and experts to generate cutting-edge ideas across the agriculture value chain. Agri-Tech Startup Accelerator: The CIE at IIIT, Hyderabad and the National Institute of Agricultural Extension Management (MANAGE) have introduced an accelerator programme tailored for agri-tech startups following a memorandum of understanding. The objective of this initiative is to recognise, assist, and enable early-stage enterprises leveraging cuttingedge technologies and innovations to tackle specific challenges within the realm of Indian agriculture. The momentum towards agri-startups gained significant traction in 2015-16 with the establishment of ABIs across the country. India hosts over 100 agrifocused incubators, predominantly affiliated with ICAR institutes and agricultural universities. These incubators receive support from Startup India, the Atal Innovation Mission, NSTEDB, RKVY-RAFTAAR, and ICAR. Under the DST’s NIDHI scheme, there are 36 agriculture-based incubation centres in India, out of which seven Technology Business Incubators (TBIs) are situated at ICAR-IARI, New Delhi; ICAR-NDRI, Karnal; ICAR-NAARM, Hyderabad; ICAR-IIHR, Bangalore; TNAU, Coimbatore, and ICRISAT, Patancheru. Additionally, there are around 45 NIDHI PRAYAS centers in India, with only one located at NAARM within NARES. The ICAR has established 50 ABIs across various research institutes with an annual budget of Rs. 10 crore (Rs. 20 lakh per ABI). Similarly, 29 ABIs have been instituted at different state agricultural universities (SAUs) under the RKVY-RAFTAAR scheme of the MoA&FW, receiving a grant ranging from Rs. 2-3 crore for each R-ABI, which collectively support over 750 agriculture-based startups and agrientrepreneurs, including farmer-entrepreneurs and producer companies (FPOs) (NAAS, 2022). Kurukshetra January 2024 The Union Budget 2023 demonstrated a commitment to supporting agri-startups through increased allocations and targeted measures in the creation of rural infrastructure and development of agriculture and allied sector. The Government's initiatives to integrate rural markets (haats) with eNam and broaden the scope of Minimum Support Price (MSP) for comprehensive coverage of agricultural commodities, is commendable. These measures are expected to lead to improved price realisation for farmers, providing greater opportunities for agristartups already dedicated to enhancing farm produce prices. Furthermore, the decision to enhance budget allocation for food processing is poised to bolster the food processing supply chain. This move is particularly beneficial for agri-startups operating within this domain. Agri-Startups Transforming Supply Chain and Market Linkage Agri-startups function within one or multiple phases of the agricultural value chain. These are categorised into different types, such as a) establishing connections to output markets; b) facilitating input supply; c) enabling mechanisation and irrigation; d) providing financial solutions such as credit and insurance; e) aiding in quality maintenance through monitoring and traceability; f) managing postharvest processes; g) offering logistic services such as warehousing and cold chains; and h) supporting activities related to animal husbandry. Startups in the agricultural sector are revolutionising the supply chain and market linkage models to address challenges in India's supply-driven agriculture. Companies like Sabziwala, MeraKisan, and Dehaat have successfully aggregated horticulture products. Technology intervention in the agricultural value chain spans a wide scope. Farmers can now conveniently acquire agricultural inputs through their phones, access weather forecasts using dedicated apps, make informed decisions on crop selling rates with decision support solutions, manage pests and nutrition effectively, and receive AI-based sowing advisories for improved agricultural practices. Harvesting and transport advancements include GSM mobile-controlled motors, sophisticated irrigation systems such as drip and sprinklers, GPS-powered 15 auto-steering tractors, crop counting machines, and machine-learning algorithms designed to distinguish between weeds and crops. In the realm of processing and storage, innovations encompass machine-based imaging technology for sorting based on colour, size, and type. Additionally, wireless sensors connected to smart phones monitor crops, and there are moisture content measurement methods for the grains. Distribution, packaging, and handling strategies involve leveraging web and mobile applications for direct sales of farm products, employing price forecasting models to mitigate inflation, implementing dynamic product pricing, establishing online marketplaces for grains, and utilising data for effective tracking. addition to existing schemes, effective institutional mechanisms are important to facilitate smoother implementation. Sustainability of agri-startups would require provision of market access, growth capital, and digital infrastructure for rural information, pool of mentors and investors, and websites on agri-startups. A comprehensive network of relevant institutions is vital for the transformation of agri-startup intentions into profitable enterprises.  Conclusion The Indian Government has initiated the Startup India programme, aiming to consolidate and unite a majority of startups on a single platform. Governments, both at the central and state levels, have implemented supportive policies to aid the early takeoff and successful operations of Agri-startups. Agri-tech startups are actively integrating technology into market linkages. The major sub-sectors witnessing the rise of agri-tech startups include Big Data Analytics, Supply Chain/Market-linked Model, FaaS (Farm as a Service), IoT Enabled solutions. In Cabinet Decision 16 Kurukshetra January 2024