Agri Water Tech Startups Need Rs 500-600 Cr Investment: Report

New Delhi, Feb 28 (PTI) India's agriculture water technology sector requires investments of Rs 500-600 crore to achieve widespread adoption of smart irrigation solutions even as the country faces a deepening water crisis, according to the latest report.

The study by DCM Shriram on "The Investment Mismatch in AgWater" highlights that despite agriculture consuming the largest share of water resources while contributing 16 per cent to GDP and employing 55 per cent of the workforce, the sector struggles with efficiency and adequate funding.

India has between 70-100 active AgWaterTech startups, but many risk closure due to investment hurdles, according to the report.

"Limited data, long gestation periods, and the high proportion of small and marginal farmers make AgWaterTech less attractive to investors," it added.

Ajay S Shriram -- Chairman and Senior Managing Director, DCM Shriram and Director of DCM Shriram Foundation -- emphasised the severity of the situation, saying, "Water is the most critical resource for agriculture. Against the backdrop of the nation's severe water crisis, this challenge forms a crucial mission to find and scale holistic, modern solutions".

The report recommends a results-based financing approach of Rs 50-60 crore over the next two years, along with government partnerships and improved distribution networks.

Drawing parallels with the micro-irrigation sector, which achieved scale with government support, the report said that a similar backing is needed for newer water technologies.

Kanishka Chatterjee, Director, The/Nudge Prize, said, "With smallholder farmers making up roughly 85 per cent of India's agricultural workforce, measures to shape up Indian agriculture must include solutions that can help them use water more efficiently, enhance productivity, and build long-term resilience".

The study also calls for standardised data collection to address funding gaps in the sector.

The report was released as part of the culmination of the 18-month 'AgWater Challenge Grand Finale'.

The challenge invited AgTech innovators and agri-social entrepreneurs from across the globe to develop and scale demonstrable solutions for Indian smallholder farmers growing fine cereals (rice or wheat) or cash crops (sugarcane or cotton).