Agriculture accounts for the largest source of employment in India and Brazil. With the current scenario changing one of the oldest industries is now made to embrace digitalization and transformation. In order for an efficient, resilient and a sustainable sector, major advancements have taken place via scaling up, speed, productivity of farm equipment and technological revolution via AI, sensors, analytics. A notable outcome being, crops modified to grow in any environment, faster planting, and better harvesting.
India:
India’s agriculture sector is worth US$370 billion. India being an agricultural country, two thirds of its population depend on the agricultural sector. India’s agritech industry has the potential to reach about US $24 bn in revenue by the year 2025. At this point in time, it’s under 1% of its market potential. It is the main source of livelihood for over 40 percent of the population and contributes 19.9 percent (FY 2021) to the national GDP. India is known for its variety of farming practices. With the rising importance of artificial intelligence (AI), machine learning (ML), internet of things (IoT) to increase efficiency and productivity in this sector, India currently has over 1300 agriculture start-ups. The country’s 2022-23 budget report shows provisions to support the growth for ‘digital agriculture’. Hence with the appetite to grow and become efficient in this space, it is important to find suitable and sustainable solutions for the future.
Brazil:
Brazil’s important contribution to global agribusiness is unquestionable. It is the world’s largest producer and exporter of coffee, sugar, and orange juice, and is highly ranked in the production and export of soybean, corn, ethanol, pork, beef, and poultry chicken. Today, agribusiness represents 22% of Brazil’s GDP, 1/3 of all employment and almost 40% of exports.
Despite the relevance of Brazilian agribusiness for the country and the world, investments in agtechs are not being made in the same proportion. According to AgFunder’s 2021 report, Brazil is not even on the list of the top-15 countries that invest the most in agtech. The list is topped by the United States, China, India, and Great Britain, all with investments that exceeded $1 billion by 2020. The only Latin American country that appears among the world’s top-15 is Colombia, in eighth place, with investments of $359 million. The sector raised $70 million in 2021 in Brazil.
Moreover, when looking at investments by business stage, Distrito’s to AgFunder’s 2021 report shows an over-concentration in the early-stage phase, typical of young but growing ecosystems. Considering the performance categories, the most heavily invested-in Brazilian agtech sectors are precision farming ($85.6 million), marketplaces ($27.6 million), and automation and robotics ($22.2 million).
TUM Liaison Offices in São Paulo and Mumbai
The TUM Mumbai and São Paulo Liaison offices invite you to part of our TUM Global Week where you can hear from our expert speakers. Learn about how Germany, Brazil and India have accelerated in this field and where the opportunities and capacities lie.
Date: 29th June, 2022 (Wednesday)
Time: 08 hours BRT / 13 hours CEST / 16:30 hours Mumbai
Duration: 90 minutes
Location: Zoom Webinar
Moderation: Mohaa Vyas & Sören Metz