How artificial intelligence is transforming Indian agriculture and shaping the future of farming
AI powered tools are helping farmers make better decisions
| Photo Credit:
Kinwun
Farming has always been at the heart of India’s economy and identity. Today, it supports more than 42 per cent of the population and contributes 18.2 per cent to the country’s GDP. But behind these big numbers is a sector that continues to face deep rooted challenges. Yields are still far below global averages. Over half of our farmland relies only on rainfall. And apparently a lot of what farmers grow never makes it to the market. Nearly 15 per cent of produce is lost after harvest because of poor storage, broken transport systems, or simply not finding the right buyers in time. Most farmers in India own small plots of land and work with limited resources. Many still don’t have easy access to useful information, affordable credit, or quick help when they need it the most.
But this tough reality also opens the door to change. In the past few years, artificial intelligence has started making its way into Indian farms. It helps farmers make better decisions, use water and fertilisers more efficiently, and plan their crops with greater confidence. What once seemed like a far-off technology is now turning into something practical – something that can ease the pressure on farmers and help them grow more with less.
How AI is reshaping Indian agriculture
AI powered tools are helping farmers make better decisions. These tools include solutions for crop planning, pest control, irrigation etc. AI optimised irrigation can cut water usage by 80 per cent while boosting yields by 20 to 30 per cent. In fact, digital platforms now connect over 15 million Indian farmers offering them custom insights based on their crops, soil, and climate. Besides boosting farm output, AI also helps to cut post-harvest losses and improve prices by linking farmers straight to buyers.
Even though it is becoming more important, AI adoption in Indian farming faces actual hurdles. Many land records remain undigitised and localised datasets for region-specific crops are still limited. In addition to this, many rural farmers lack technological skills and are often unaware about the tools they could use. On top of that, the regulatory framework for testing and validating AI-based agricultural solutions is still evolving.
Resolving structural gaps
Solving these challenges requires deliberate action. Technology must be rooted in local realities. Developing an Agri-Stack that brings together land records, crop data and climate information is essential. Farm-level monitoring through IoT devices can enable more targeted decision-making. Rural training programmes that familiarize farmers with precision technologies must support these tools.
Plus, it is equally important to build institutional capacity. Agricultural universities can play a central role by integrating AI modules into their curriculum. Startups working in this space would benefit from mentorship support involving researchers and agronomists. On the policy side, India will need AI validation centers, data privacy frameworks and AI-linked credit schemes to bring smallholders into the fold.
Where India stands in the global agtech movement
The need to grow more food is not just India’s concern. It is a global challenge. With the world population expected to reach ten billion by 2050, countries across the globe are under pressure to boost food production. In India, crop output has gone up by 50 per cent over the past decade. But this growth will not be enough to meet future demands.
India already holds a strong position in the global agricultural economy. It contributes nearly 12 per cent to the global gross value added in agriculture. Only China is ahead. This makes India’s role in addressing the world’s food challenge both vital and inevitable.
This urgency has led to a sharp rise in investments in smart farming worldwide. By 2025, global spending on artificial intelligence and similar technologies in agriculture is expected to touch $15.3 billion. AI alone is projected to grow at an annual rate of 25.5 per cent. Among the fastest growing areas is farm monitoring powered by the Internet of Things, which is estimated to reach a market value of $4.5 billion. In 2019, the global AI in agriculture market stood at $852.2 million. By 2030, it is likely to cross $8.3 billion.
In essence
India’s agriculture sector is at a crucial juncture. It is being reshaped by climate risks, resource constraints and the growing demand for food security. AI offers a credible and tested solution and India is well placed to be part of this shift. Programmes like Digital India and Startup India have already built a strong technology ecosystem. What matters now is ensuring that this momentum reaches the agriculture sector. Bridging this gap between innovation and field-level impact is where the real transformation lies.
The author is Global Fujitsu Distinguished Engineer
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Published on August 2, 2025
