Economics of Digitization and Agriculture in Modern India

Modernization may be synonymous with digitization but without the proper tools at our disposal, we can’t ride it to prosperity. Because India is a developing nation, the milestones since the Green Revolution of 1960 have slowly but steadily put it on the global map. Today, agriculture is an important part of the country’s overall GDP surpassing 19.9% in 2019, 2020, and 2021. Therefore, it affects the economy fairly enough to assess thoroughly.

The Rise of Digital India and Agriculture

The agri-tech sector became a major focus point just like any other sector in the country in the past 10 years. Indian giants like Infosys and TCS have catalyzed online grocery sites, e-commerce sites, entertainment sites for songs, and movies, online blackjack site, e-travel & logistics – bringing farmers on board should be a natural progression.

In India, the agri-tech sector was the only one that recorded positive growth even during the COVID-19 years. So much so that in the year 2020, when the virus onset spread, the agriculture sector grew by 3.6%. It increased to 3.9% in the next year when vaccinations were still going strong and lockdowns were commonplace.

However, the story doesn’t just end here because it was just the beginning. Various government schemes like Atma Nirbhar Bharat began to scream worldwide attention from China to the USA. Because of this, the gross value from the agriculture sector contributed 18% to 19% from 2019 to 2021.

Thus, modern India’s agricultural sector also saw exports, and the total revenue from this alone crossed USD 41 billion in 2020. The amount increased to 49 billion in the next year, 2021. So, one should not fail to understand how deeply this has pushed the economic growth in the developing country. Thus, economy and agriculture are connected in modern India, unlike in the 1950s and 60s.

How Digitization Is Implemented at the Basic Level?

When we talk about digital India, we include the use of modern tools like data science, and artificial intelligence to bring the country and its most important sector to the forefront of development. On the farm level, data is collected from IoT sensors and machines, which are used by companies like IBM, and Jio in developing pilot projects. They design and develop models to use AI to predict crop failure, diseases, and production, and support the cultivation and farmers with important insights at every level.

These devices also get help from satellite images, and hyperspectral imagery to get information on land, soil, rainfall, and so on. They tell about the best climate and suitable time for the best harvest. Thus, together, they help cover all the major factors to increase the productivity and efficiency of India’s farmlands. Ultimately, this means the growth of the economy, the progress of farmers, financial stability for small land farmers, and much more.


The connection between modernization, digital India, and agriculture cannot be overestimated. So, just like online connectivity and internet devices have brought a revolution in all sectors, agri-tech is the next to rebuild owing to Modi’s 2021-2025 five-year plan of the Digital Agricultural Mission.