Start-ups are emerging as a beacon of hope in Rural India, especially in the realm of agriculture.
Role of Start-ups in Rural Economy
- Rural Development: Scaling startups focused on tackling issues in traditional livelihood practices can push for overall rural economic improvement and achieve the vision of ‘Atmanirbhar gaon’.
- Employment Generation: Rural startups not only provide innovative solutions to problems but also create employment and livelihood opportunities in rural India. E.g., Meesho, Udaan etc.
- Education and Skill Development: Rural-urban divide in education accessing has been abridged by the emergence of rural Ed-tech startups. E.g., Paathshaala, Learning Delight etc.
- Financial Inclusion: Fintech start-ups are working towards providing access to affordable financial services like microcredit, insurance, and digital payments in rural areas. E.g., Bank Saathi
- Women Empowerment: The SHG led startups have led to the socio-political and economic empowerment of rural women. E.g., Lijjat Papad, SARAL JEEVAN SAHELIS, FARM DIDI ETC.
- Environmental Sustainability: Rural startups have been contributing to the vision of clean and green India by focusing on harnessing renewable energy. E.g., AgriVijay, Earthshastra Ecotech pvt. Ltd.
- Water Governance: Several Start-ups are striving to make water accessible and affordable, save agriculture water etc. E.g., Water lab India, Kheyti, boon etc.
- Agricultural innovation: such as Irrigation as a Service (IaaS).
- IaaS is an irrigation technology that provides hassle free, pay per use and cost effective on demand irrigation to small and marginal farmers.
- It functions on a subscription or pay-per-use basis meaning farmers pay a fixed monthly fee or a fee based on water usage.
- Benefits: Improved water efficiency and crop yields, beneficial for water intensive crops like sugarcane, soil health monitoring etc.
Initiatives Undertaken
- Startup India: Launched in 2016 to build a strong eco-system for nurturing innovation and startups in the country which will drive economic growth and generate large scale employment opportunities.
- Startup India Seed Fund Scheme: It aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization.
- NewGen Innovation and Entrepreneurship Development Centre: It has a mission to promote knowledge based and technology-driven startups by harnessing young minds and their innovation potential in an academic environment.
- Innovation & Agri-Entrepreneurship Programme: Aims to nurture and promote agri-entrepreneurs by providing financial assistance and nurturing the innovation ecosystem in the agriculture sector.
- Agriculture Accelerator Fund (AAF): Under the AAF, financial support is provided to entrepreneurs in the field of agriculture and allied sectors to set up their startups.
