Agtechs and financial institutions: Financing farmers in India
This blog, the third and final piece in this series, focuses on partnerships between AgTechs and financial institutions to improve access to finance for farmers. It also offers recommendations to improve the AgTech ecosystem in India.
Why do financial institutions shy away from financing farmers in India?
This blog, the first in a three-part series, highlights the skewed penetration of formal financing for farmers in India. It also examines the challenges that financial institutions face while offering credit to small and marginal farmers in the country.
The role of tech-enabled formal financing in agriculture in India
India is home to 146 million farmers, 86% of which are small and marginal farmers. Although agriculture is a key economic activity in India and employs almost 55% of the population, access to finance remains a challenge for most farmers, especially the small and marginal ones.