The Role of Data-Driven Agritech Startups—The Case of India and Japan

Abstract

Global climate change poses many threats, with significant consequences for crop productivity and food security. The agricultural sectors in India and Japan face multiple problems, such as pre-harvest problems (volatility in input prices), post-harvest and supply chain issues in India, and labor shortages, the aging workforce, and the increase in the food self-sufficiency ratio, among others, in Japan. Farming practices and productivity can be improved by employing data-driven insights. This study was primarily conducted using secondary data collection and a literature review to comprehend the current state of data-driven agriculture in India and Japan, including analysis of supporting government policies and patent trends. The same context was further explored by conducting semi-structured interviews with key persons from data-driven agritech startups (capabilities, value proposition, etc.) in India and Japan. The results show that the driving forces of agritech adoption are sustainability, evolving business models, regulations, and macroeconomic conditions. On the one hand, India’s agriculture ecosystem is facing volatility in input prices, inefficient supply chains, low access to technology, limited access to finance, and the lack of dependable agricultural information, while Japan is tackling an aging farming workforce, high production costs, and the need for technological innovation. The findings show that by leveraging bilateral collaboration, agritech startups from India and Japan can mutually benefit from driving innovations in the agritech space as India could maxmize its digital potential by leveraging Japan’s digital prowess, and Japan could expand its market base and reap benefits from the enormous agritech potential India.