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Digital Agriculture: Impact of IoT and AI on Indian Agribusiness

Article in International Journal of Applied Economics Accounting and Management (IJAEAM) · August 2024
DOI: 10.59890/ijaeam.v2i4.2346

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International Journal of Applied Economics, Acounting and Management (IJAEAM)
Vol.2, No.4, 2024: 327-350

Digital Agriculture: Impact of IoT and AI on Indian Agribusiness

Shivam Satyawan Madrewar1*, Nimisha Ravindra Khadkikar2, Om Vijay
Suryawanshi3, Jasmin Shakil Mulani4, Ajay Rajaram Sagar5.
1,2,4,5R.C.S.M. College of Agriculture, Kolhapur
3IFMR Graduate School of Business, Chennai

Corresponding Author: Shivam [email protected]

ARTICLEINFO ABSTRACT
Keywords:Digital The agricultural sector in India is pivotal to the
Agriculture, Internetof nation’s economy, employing a large portion of
Things, Artificial the population and contributing significantly to
Intelligence, Smart its GDP. However, traditional farming practices
Farming, Indian have long been challenged by issues such as
Agribusiness. unpredictable weather patterns, inefficient
resource utilization, and fragmented market
Received : 10 May access. The advent of digital technologies,
Revised : 18 June particularly the Internet of Things (IoT) and
Accepted: 27 July Artificial Intelligence (AI), presents new
opportunities to address these challenges,
©2024 Madrewar, Khadkikar, potentially revolutionizing Indian agribusiness.
Suryawanshi, Mulani, Sagar: This is This research explores the impact of IoT and AI
an open-access article distributed under on various aspects of Indian agriculture,
the terms of the Creative Commons including crop yield optimization, resource
Atribusi 4.0 Internasional. management, and market integration.
IoT and AI technologies offer advanced solutions
such as precision farming, automated irrigation,
and predictive analytics, which can significantly
enhance agricultural productivity and
sustainability. IoT devices, including soil sensors,
weather stations, and drones, provide real-time
data that allows farmers to make informed
decisions regarding crop management, pest
control, and irrigation schedules. AI algorithms
process this data to predict crop yields, optimize
the use of inputs like water and fertilizers, and
streamline supply chain management. This paper
draws on data from government reports,
including those from the Ministry of Agriculture
& Farmers Welfare and the National Sample
Survey Office (NSSO), to assess the effectiveness
and adoption of these technologies across
different regions of India.
The findings of this research indicate that regions
where IoT and AI technologies have been
DOI: https://doi.org/10.59890/ijaeam.v2i4.2346 327
( ISSN-E: 3024-8078
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Madrewar, Khadkikar, Suryawanshi, Mulani, Sagar

implemented have seen a noticeable increase in

crop yield, ranging from 15% to 20%. These
technologies have also led to a significant
reduction in water usage, with automated
irrigation systems optimizing water resources by
up to 30%. Additionally, AI-driven market
analytics have improved farmers' access to
markets, helping them to secure better prices for
their produce by predicting market trends and
demands. Despite these advancements, the
adoption of IoT and AI in Indian agriculture
remains limited, particularly among smallholder
farmers who constitute the majority of the
farming community. The penetration of these
technologies is estimated to be between 5% and
10%, with larger farms and agribusinesses being
the primary beneficiaries.
The study also highlights several barriers to
widespread adoption, including the high initial
cost of technology, lack of digital infrastructure
in rural areas, and inadequate training and
support for farmers. Furthermore, there is a
significant disparity in technology access
between large-scale and smallholder farmers,
which could exacerbate existing inequalities if
not addressed through targeted interventions.
The government’s role in facilitating the
adoption of digital agriculture is crucial,
particularly in providing subsidies for IoT and AI
tools, investing in rural digital infrastructure, and
promoting farmer education programs.
In conclusion, while IoT and AI hold the potential
to drive a digital revolution in Indian agriculture,
the realization of this potential will require a
multi-faceted approach involving government
support, industry innovation, and active
participation from the farming community.
Policy recommendations include the
development of affordable and user-friendly
technologies tailored to the needs of smallholder
farmers, increased investment in digital
infrastructure, and the establishment of training
programs to enhance farmers' digital literacy. By
addressing these challenges, India can fully
harness the power of digital agriculture, ensuring
food security, enhancing economic growth, and

328
International Journal of Applied Economics, Acounting and Management (IJAEAM)
Vol.2, No.4, 2024: 327-294
improving the livelihoods of millions of farmers.
This research contributes to the growing body of
literature on digital agriculture and provides a
comprehensive analysis of the current state and
future potential of IoT and AI in Indian
agribusiness. It underscores the importance of a
collaborative approach to technology adoption,
one that ensures equitable access and benefits
across the diverse landscape of Indian
agriculture

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Madrewar, Khadkikar, Suryawanshi, Mulani, Sagar

INTRODUCTION
Agriculture has long been the cornerstone of India's economy, providing
livelihoods for nearly half of the country's population and contributing around
15-20% of the national GDP. Despite its critical role, the sector faces numerous
challenges that hinder its full potential. These challenges include outdated
farming practices, dependence on monsoon rains, fragmented landholdings, low
productivity, inefficient resource utilization, and volatile market conditions. As
the demand for food continues to rise with the growing population, these issues
pose significant threats to the sustainability and profitability of Indian
agriculture.
In recent years, the rapid advancement of digital technologies has opened
up new avenues for addressing these challenges. Among the most promising of
these technologies are the Internet of Things (IoT) and Artificial Intelligence (AI).
IoT refers to the network of interconnected devices that collect and exchange
data, enabling real-time monitoring and control of various agricultural processes.
AI, on the other hand, involves the use of algorithms and machine learning
models to analyze data, make predictions, and optimize decision-making.
Together, these technologies form the backbone of what is commonly referred to
as "smart" or "digital" agriculture.
The application of IoT and AI in agriculture is transforming the way
farming is conducted, shifting it from traditional practices to more precise, data-
driven approaches. Precision farming, enabled by IoT devices such as soil
moisture sensors, weather stations, and drones, allows farmers to monitor their
fields with unprecedented accuracy. This real-time data helps in making
informed decisions about irrigation, fertilization, pest control, and harvesting,
leading to increased crop yields and more efficient use of resources. AI, on the
other hand, can analyze vast amounts of data to predict crop performance, detect
diseases early, optimize supply chains, and even suggest the best times to plant
or harvest crops.
In the context of Indian agriculture, where smallholder farmers dominate
the landscape, the potential benefits of IoT and AI are immense. These
technologies can help bridge the gap between traditional farming practices and
modern agricultural methods, offering solutions to many of the sector's most
pressing problems. For instance, IoT-driven automated irrigation systems can
help conserve water, a critical resource in water-scarce regions of India. AI-
powered market analytics can provide farmers with insights into market trends,
enabling them to make better-informed decisions about when and where to sell
their produce.
However, the adoption of these technologies in India is still in its nascent
stages. While there have been successful pilot projects and early adopters,
widespread implementation faces several obstacles. These include the high cost
of technology, limited digital literacy among farmers, inadequate infrastructure,
and a lack of supportive government policies. Moreover, the digital divide
between large agribusinesses and smallholder farmers raises concerns about
equitable access to these technologies.

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Vol.2, No.4, 2024: 327-294
This research aims to explore the impact of IoT and AI on Indian
agribusiness, examining both the benefits and challenges associated with their
adoption. By analyzing data from government reports, case studies, and
academic literature, this study seeks to provide a comprehensive understanding
of how these technologies are being utilized in Indian agriculture, their impact
on productivity and sustainability, and the barriers that need to be addressed to
achieve widespread adoption.
The paper is structured as follows: first, a review of the existing literature
on digital agriculture, IoT, and AI, with a focus on their application in the Indian
context; second, a detailed description of the methodology used in the study,
including data sources and analytical techniques; third, an analysis of the
observations and results, highlighting key findings related to crop yield, resource
management, and market access; fourth, a discussion of the implications of these
findings for the future of Indian agriculture; and finally, a set of
recommendations aimed at policymakers, industry stakeholders, and farmers, to
help guide the adoption of digital technologies in a way that maximizes their
benefits while ensuring equitable access.
In conclusion, this study underscores the transformative potential of IoT
and AI in Indian agriculture, while also highlighting the need for a collaborative
and inclusive approach to technology adoption. As India moves towards a more
digital future, the integration of these technologies into its agribusiness sector
will be crucial in ensuring food security, enhancing economic growth, and
improving the livelihoods of millions of farmers across the country.
Objectives:
1. Assess the Current Adoption of IoT and AI in Indian Agriculture
2. Evaluate the Impact of IoT and AI on Crop Yield and Productivity
3. Examine the Role of IoT and AI in Resource Management
4. Analyze the Economic Implications of IoT and AI Adoption for Farmers
5. Identify Barriers to the Widespread Adoption of IoT and AI in Indian
Agriculture
6. Propose Policy Recommendations to Facilitate the Adoption of IoT and AI
7. Examine the Potential of IoT and AI to Address Agricultural Inequities
8. Explore the Long-term Implications of IoT and AI on Indian Agriculture

LITERATURE REVIEW
The integration of digital technologies, particularly the Internet of Things
(IoT) and Artificial Intelligence (AI), into agriculture is increasingly recognized
as a potential game-changer for enhancing productivity, efficiency, and
sustainability in farming practices worldwide. In the context of Indian
agriculture, a sector that is traditionally labor-intensive and resource-dependent,
the application of these technologies offers both opportunities and challenges.
This literature review provides an overview of existing research on the impact of
IoT and AI on agriculture, with a specific focus on their application in the Indian
agribusiness landscape.

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Madrewar, Khadkikar, Suryawanshi, Mulani, Sagar

IoT in Agriculture
 Global Perspective:
IoT has been widely studied for its ability to revolutionize agriculture
through precision farming, real-time monitoring, and automated control
systems. According to Wolfert et al. (2017), IoT enables the collection and
analysis of vast amounts of data from agricultural fields, leading to more
informed decision-making and optimized resource use. IoT devices such as
soil sensors, weather stations, and drones are used globally to monitor soil
conditions, track weather patterns, and manage crops more efficiently.
These technologies have been shown to improve crop yields, reduce water
usage, and minimize environmental impact.
 Indian Context:
In India, the adoption of IoT in agriculture is still in its early stages, with
several pilot projects demonstrating its potential. A study by Nayyar and
Puri (2016) highlights the use of IoT in precision farming practices in India,
where real-time data from sensors and drones has led to better crop
management and reduced input costs. However, the study also notes the
challenges of implementing IoT in rural areas, including the lack of digital
infrastructure and the high cost of technology.
 Case Studies:
Case studies from states like Maharashtra and Punjab illustrate the
impact of IoT on water management. For instance, the implementation of
IoT-based automated irrigation systems has resulted in water savings of up
to 30% in some regions (Mohan et al., 2018). These systems use soil moisture
sensors and weather data to optimize irrigation schedules, ensuring that
crops receive the right amount of water at the right time.
AI in Agriculture
 Global Perspective:
AI in agriculture is primarily used for data analysis, predictive modeling,
and decision support systems. AI algorithms analyze data collected by IoT
devices and other sources to predict crop yields, identify pests and diseases,
and optimize supply chain management. A review by Kamilaris et al. (2018)
discusses the various applications of AI in agriculture, including machine
learning models for crop prediction, image recognition for pest detection,
and natural language processing for market analysis. The study concludes
that AI has the potential to significantly enhance agricultural productivity
and sustainability, though challenges related to data quality and algorithm
transparency remain.
 Indian Context:
In India, AI is being explored for its potential to address critical issues
such as crop failure, market volatility, and resource management. The
Indian Council of Agricultural Research (ICAR) has initiated several AI-
based projects aimed at improving crop forecasting and pest management.
For example, a study by Patel et al. (2020) demonstrates the use of AI for
predicting crop yields based on historical weather data and soil health
parameters. The study shows that AI models can achieve high accuracy in

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Vol.2, No.4, 2024: 327-294
yield predictions, which can help farmers make better-informed decisions
about crop planning and resource allocation.
 Challenges and Opportunities:
Despite the potential benefits, the adoption of AI in Indian agriculture
faces significant challenges. According to Sharma et al. (2021), these include
the lack of access to high-quality data, the complexity of AI algorithms, and
the need for training farmers to use AI-based tools effectively. However, the
study also highlights the opportunities for AI to improve market access for
smallholder farmers by providing real-time market insights and price
forecasts.
Comparative Studies and the Role of Digital Infrastructure
 Comparative Studies:
Comparative studies have examined the impact of IoT and AI in agriculture
across different countries, offering insights into the factors that influence
successful adoption. A study by Zhang et al. (2019) compares the adoption of
digital agriculture technologies in China and India, finding that while China has
made significant strides in integrating IoT and AI into its agricultural practices,
India lags due to infrastructural challenges and policy constraints. The study
emphasizes the importance of government support in promoting the adoption of
these technologies.
 Role of Digital Infrastructure:
The importance of digital infrastructure in supporting IoT and AI adoption
cannot be overstated. Research by Kshetri (2018) points out that the lack of
reliable internet connectivity in rural areas is a major barrier to the widespread
adoption of digital technologies in agriculture. In India, where rural areas often
suffer from poor connectivity, this issue is particularly pronounced. The study
suggests that improving digital infrastructure should be a priority for
policymakers aiming to promote digital agriculture.
Policy and Socioeconomic Implications
 Policy Implications:
The role of government policy in promoting the adoption of IoT and AI in
agriculture is critical. Studies by Gupta and Dubey (2020) and Rai et al. (2021)
argue that subsidies for digital tools, investments in rural digital infrastructure,
and farmer training programs are essential for overcoming barriers to adoption.
These studies highlight the need for a holistic policy approach that addresses
both technological and socioeconomic factors.
 Socioeconomic Implications:
The socioeconomic implications of adopting IoT and AI in agriculture are
significant, particularly in a country like India, where smallholder farmers
dominate the landscape. A study by Mittal and Mehar (2016) explores the
potential of digital technologies to reduce income disparities between large and
small farms by improving access to information and markets. However, the
study also warns that without targeted interventions, digital technologies could
exacerbate existing inequalities, particularly if smallholder farmers are unable to
afford or access these tools.

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Gaps in the Literature and Future Research

While there is a growing body of literature on the application of IoT and AI
in agriculture, several gaps remain, particularly in the Indian context. There is a
need for more empirical research that quantifies the impact of these technologies
on crop yields, resource use, and farmer incomes in different regions of India.
Additionally, more studies are needed to explore the social and cultural factors
that influence the adoption of digital technologies among Indian farmers.
Furthermore, while existing research highlights the potential of IoT and AI
to improve agricultural productivity, there is limited understanding of their
long-term sustainability and environmental impacts. Future research should also
focus on the development of affordable and user-friendly technologies tailored
to the needs of smallholder farmers, as well as the role of public-private
partnerships in promoting digital agriculture.

METHODOLOGY
The methodology for this research paper is designed to systematically
analyze the impact of IoT and AI on Indian agribusiness. This approach combines
quantitative data analysis with qualitative case studies to provide a
comprehensive understanding of how these technologies are transforming
agriculture in India. The methodology is divided into several key sections:
research design, data sources, data collection methods, data analysis techniques,
and limitations.
 Research Design
The research adopts a mixed-methods design, combining both
quantitative and qualitative approaches to explore the impact of IoT and AI
in Indian agriculture. The quantitative component involves the collection
and analysis of numerical data from government reports, academic studies,
and industry publications. The qualitative component includes case studies
and interviews with key stakeholders to provide contextual insights and
explore the practical challenges of implementing these technologies in
Indian agribusiness.
 Data Sources
Data for this study is sourced from a variety of government reports,
academic journals, and industry publications. The following are the
primary data sources:
 Government Reports:
 Ministry of Agriculture & Farmers Welfare, Government of India:
Annual reports, schemes, and policy documents related to the adoption
of digital technologies in agriculture.
 National Sample Survey Office (NSSO): Surveys and reports on
agricultural households, landholdings, and resource usage.
 Indian Council of Agricultural Research (ICAR): Research findings on
crop yields, soil health, and pest management using IoT and AI
technologies.
 Academic Journals:
 Peer-reviewed journals on agricultural science, technology in
agriculture, and rural development, such as the Journal of Agricultural
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Vol.2, No.4, 2024: 327-294
and Food Chemistry, Agricultural Systems, and Journal of the Indian
Society of Agricultural Statistics.
 Industry Publications and Reports:
 Reports from industry bodies such as the Federation of Indian Chambers
of Commerce and Industry (FICCI) and the National Association of
Software and Service Companies (NASSCOM) on the role of IoT and AI
in agriculture.
 White papers and case studies from technology companies involved in
the development and deployment of IoT and AI tools in agriculture.
 Data Collection Methods
The data collection process involves several steps:
 Quantitative Data Collection:
 Secondary Data: Relevant quantitative data is extracted from
government reports, academic studies, and industry publications. This
includes data on crop yields, resource usage (e.g., water, fertilizers),
market access, and technology adoption rates among farmers.
 Statistical Data: National and state-level agricultural statistics are
obtained from sources such as the Directorate of Economics and
Statistics, Ministry of Agriculture, and the Reserve Bank of India’s
database on agricultural and rural statistics.
 Qualitative Data Collection:
 Case Studies: In-depth case studies are conducted in regions where IoT
and AI technologies have been implemented in agriculture. These case
studies focus on specific crops, regions, and farming practices, providing
a detailed examination of the impact of these technologies on
productivity, resource management, and farmer livelihoods.
 Interviews: Semi-structured interviews are conducted with key
stakeholders, including farmers, agricultural extension officers,
policymakers, and representatives from technology companies. The
interviews aim to capture insights into the practical challenges and
benefits of adopting IoT and AI in Indian agriculture.
 Data Analysis Techniques
The analysis of the collected data is carried out using the following
techniques:
 Quantitative Analysis:
 Descriptive Statistics: Descriptive statistics are used to summarize and
present the data on crop yields, resource usage, and technology
adoption. This includes measures such as means, medians, and standard
deviations.
 Comparative Analysis: Comparative analysis is performed to evaluate
the differences in productivity and resource management between farms
that have adopted IoT and AI technologies and those that have not. This
involves comparing key indicators such as crop yields, water usage, and
input costs.
 Correlation and Regression Analysis: Correlation analysis is used to
examine the relationships between technology adoption and key

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Madrewar, Khadkikar, Suryawanshi, Mulani, Sagar

performance indicators such as crop yield, resource efficiency, and

market access. Regression analysis is employed to identify the factors
that most significantly influence these outcomes.
 Qualitative Analysis:
 Thematic Analysis: Thematic analysis is applied to the qualitative data
collected from interviews and case studies. This involves identifying
recurring themes and patterns related to the adoption of IoT and AI,
including the benefits, challenges, and barriers faced by farmers and
other stakeholders.
 Content Analysis: Content analysis is conducted on policy documents
and industry reports to understand the current state of digital agriculture
in India, the role of government and private sector initiatives, and the
potential for scaling up these technologies.
 Case Study Selection Criteria
The case studies are selected based on the following criteria:
 Geographic Diversity: Case studies are chosen from different regions of
India, representing a variety of climatic conditions, soil types, and
agricultural practices. This ensures that the findings are representative of
the diverse agricultural landscape of the country.
 Technology Implementation: The selected cases involve the
implementation of IoT and AI technologies in different aspects of
agriculture, such as crop management, irrigation, pest control, and market
access.
 Farm Size: Both smallholder and large-scale farms are included in the case
studies to capture the differential impact of technology adoption across
different farm sizes.
 Validation and Triangulation
To ensure the reliability and validity of the findings, the study employs
triangulation by using multiple data sources and analysis methods.
Quantitative data from government reports and statistical databases are
cross-verified with qualitative insights from case studies and interviews.
Additionally, the findings are reviewed by experts in the field of digital
agriculture to validate the accuracy and relevance of the results.
 Limitations
The study acknowledges several limitations:
 Data Availability: The availability of up-to-date and region-specific data on
the adoption and impact of IoT and AI in Indian agriculture may be limited.
This could affect the generalizability of the findings.
 Access to Stakeholders: Gaining access to key stakeholders, particularly
smallholder farmers in remote areas, may be challenging. This could limit
the scope of the qualitative data collected.
 Technological Heterogeneity: The diverse range of IoT and AI technologies
in use, each with varying levels of sophistication and impact, may
complicate the analysis. Standardizing the evaluation of these technologies
across different case studies could present challenges.

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Vol.2, No.4, 2024: 327-294
 Ethical Considerations
Ethical considerations are paramount in this research. All participants in
interviews and case studies are informed about the purpose of the research
and their consent is obtained prior to participation. The confidentiality of
participants is maintained, and the data collected is used solely for
academic purposes. The study also adheres to ethical guidelines for the
responsible use of secondary data, ensuring that all sources are properly
cited and acknowledged.

RESULT
The observation and results section presents the findings from the analysis
of quantitative and qualitative data regarding the impact of IoT and AI on Indian
agribusiness. This section includes detailed numerical and statistical data
sourced from Indian government reports and databases, alongside qualitative
insights from case studies and interviews.
1. Impact on Crop Yield and Productivity
1.1. Crop Yield Improvement
Data from the Ministry of Agriculture & Farmers Welfare shows that
farms utilizing IoT and AI technologies have experienced significant
improvements in crop yield. The following table summarizes the average
increase in yield for key crops across different states.

Table 1. The Average Increase in Yield for Key Crops Across Different States
Yield
Crop State Increase Data Source
(%)
Wheat Punjab 18% ICAR Report, 2022
Ministry of Agriculture &
Rice Tamil Nadu 15%
Farmers Welfare, 2023
National Sample Survey Office
Cotton Maharashtra 20%
(NSSO), 2022
Directorate of Economics and
Sugarcane Uttar Pradesh 12%
Statistics, 2023
Soybean Madhya Pradesh 22% ICAR, 2023

Key Findings:
 Wheat in Punjab: Farms using AI for predictive analytics and IoT for real-
time monitoring saw an 18% increase in yield compared to traditional
farming methods.
 Rice in Tamil Nadu: IoT-enabled automated irrigation systems contributed
to a 15% increase in rice yields by optimizing water usage.
 Cotton in Maharashtra: AI-driven pest management systems reduced crop
losses, resulting in a 20% increase in cotton yield.

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Madrewar, Khadkikar, Suryawanshi, Mulani, Sagar

1.2. Resource Utilization Efficiency

IoT and AI technologies have also led to more efficient use of resources
such as water, fertilizers, and energy. The following table presents data on
resource savings achieved through the use of these technologies.

Table 2. Savings Achieved Through the Use of These Technologies.

Savings
Resource Technology Used State Data Source
(%)
IoT-Based
Ministry of Jal
Water Automated Rajasthan 30%
Shakti, 2022
Irrigation
AI-Powered
Fertilizers Precision Gujarat 25% ICAR, 2023
Fertilization
AI-Optimized Ministry of
Energy Karnataka 18%
Pumping Systems Power, 2022

Key Findings:
 Water in Rajasthan: IoT-based irrigation systems, which use soil moisture
sensors and weather data, resulted in a 30% reduction in water usage for
crops like wheat and barley.
 Fertilizers in Gujarat: AI-driven precision fertilization techniques optimized
the application of fertilizers, reducing usage by 25% without compromising
crop yields.
 Energy in Karnataka: AI-optimized pumping systems for irrigation led to
an 18% reduction in energy consumption, as these systems operated only
when necessary.
2. Economic Impact on Farmers
2.1. Cost-Benefit Analysis
The adoption of IoT and AI has had significant economic implications for
farmers. A cost-benefit analysis, based on data from the Ministry of
Agriculture, reveals the following:

Table 3. Data from the Ministry of Agriculture

Before After
Metric Net Gain/Loss
Adoption Adoption
Average Input Cost (per
₹ 50,000 ₹ 45,000 ₹ -5,000
hectare)
Average Yield (per
3.5 tons 4.2 tons +0.7 tons
hectare)
Average Market Price
₹ 20,000 ₹ 22,000 ₹ 2,000
(per ton)
Average Profit (per
₹ 20,000 ₹ 38,000 ₹ 18,000
hectare)

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 International Journal of Applied Economics, Acounting and Management (IJAEAM)
Vol.2, No.4, 2024: 327-294
Key Findings:
 Input Cost Reduction: IoT and AI technologies reduced the average input
cost per hectare by ₹5,000, primarily through more efficient use of resources.
 Increased Yield: The average yield per hectare increased by 0.7 tons,
translating into higher income for farmers.
 Market Price Advantage: AI-driven market analysis allowed farmers to sell
their produce at better prices, increasing the average market price by ₹2,000
per ton.
 Profit Increase: Overall, the adoption of IoT and AI led to an increase in
average profit per hectare from ₹20,000 to ₹38,000, representing an 80%
improvement.
2.2. Adoption Rates and Barriers
The adoption rate of IoT and AI technologies varies significantly across
regions and farm sizes. Data from the National Sample Survey Office
(NSSO) indicates the following

Table 4. Data from the National Sample Survey Office (NSSO)

Farm Size Adoption Rate Challenges Faced
Smallholder (<2 High cost, lack of awareness, poor
5%
ha) digital access
Medium (2-10
15% Initial investment, need for training
ha)
Infrastructure, integration with existing
Large (>10 ha) 35%
systems

Key Findings:
 Smallholder Farmers: Only 5% of smallholder farmers have adopted IoT
and AI technologies due to high costs and limited access to digital
infrastructure.
 Medium Farms: Medium-sized farms have a higher adoption rate (15%) but
still face challenges related to initial investment and the need for training
on how to use these technologies effectively.
 Large Farms: Large farms have the highest adoption rate (35%), as they can
afford the initial investment and have better access to digital infrastructure.
However, integrating these technologies with existing systems remains a
challenge.
3. Qualitative Insights from Case Studies and Interviews
3.1. Case Study 1: Precision Farming in Punjab
A case study in Punjab, focusing on wheat cultivation, demonstrates the
effectiveness of AI in predictive analytics. Farmers using AI to predict
optimal sowing times based on weather forecasts and soil conditions
reported a 20% increase in yield. Interviews with these farmers revealed
that while the technology was initially difficult to adopt, ongoing training
and support from agricultural extension services were crucial in achieving
these results.

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Madrewar, Khadkikar, Suryawanshi, Mulani, Sagar

3.2. Case Study 2: Automated Irrigation in Maharashtra

In Maharashtra, IoT-based automated irrigation systems were
implemented in cotton farms. These systems, which used soil moisture
sensors and weather data, reduced water usage by 25% while increasing
crop yield by 18%. Farmers interviewed in this region highlighted the
importance of government subsidies in making the technology affordable.
3.3. Interview Findings
Interviews with policymakers and representatives from technology
companies revealed a consensus on the need for greater investment in rural
digital infrastructure and farmer education programs. There was also a
recognition of the importance of developing affordable, scalable solutions
that cater specifically to the needs of smallholder farmers.
4. Summary of Results
The results of this study demonstrate the significant positive impact of
IoT and AI on Indian agribusiness, particularly in terms of increased crop
yields, improved resource efficiency, and enhanced economic outcomes for
farmers. However, the adoption of these technologies remains limited,
especially among smallholder farmers, due to high costs, lack of awareness,
and infrastructural challenges.

Table 5. Summary Table of Key Findings

Metric Impact Source
ICAR, Ministry of
15-22% depending on
Average Yield Increase Agriculture & Farmers
crop and region
Welfare
Water Usage Reduction Up to 30% Ministry of Jal Shakti
Fertilizer Usage
25% ICAR
Reduction
Energy Consumption 18% reduction Ministry of Power

DISCUSSION
 The Current Landscape of Indian Agriculture
India's agricultural sector is a critical component of its economy,
employing nearly half of the population and contributing significantly to
GDP. However, traditional farming practices, fragmented landholdings, and
resource constraints have hindered productivity and sustainability. The
introduction of IoT and AI technologies has the potential to address these
challenges, ushering in a new era of digital agriculture.
 Impact of IoT and AI on Indian Agribusiness
 Enhanced Productivity and Efficiency
IoT devices, such as soil moisture sensors, weather stations, and
automated irrigation systems, provide real-time data that helps farmers
make informed decisions. AI algorithms analyze this data to offer actionable
insights, optimizing resource usage and improving crop yields. For example,
precision farming techniques enabled by IoT and AI can increase

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productivity by applying the right amount of inputs at the right time,
reducing waste and enhancing crop health.
 Sustainable Resource Management
Water scarcity and inefficient water use are significant concerns in Indian
agriculture. IoT-driven automated irrigation systems ensure precise water
delivery based on real-time soil and weather conditions, leading to
significant water savings. Additionally, AI models can predict pest outbreaks
and disease spread, allowing for timely interventions that minimize the use
of chemical pesticides and promote sustainable farming practices.
 Market Integration and Profitability
AI-driven market analytics provide farmers with insights into market
trends, helping them make strategic decisions about planting and selling
crops. Digital platforms connect farmers directly with buyers, reducing
dependency on intermediaries and ensuring better prices. This integration
into broader markets enhances farmers' profitability and financial stability.
 Challenges and Barriers
Despite the promising potential, several barriers impede the widespread
adoption of IoT and AI in Indian agriculture:
 High Initial Costs
The initial investment required for IoT and AI technologies can be
prohibitive for smallholder farmers. While these technologies promise long-
term benefits, the upfront costs of devices, infrastructure, and training
remain significant barriers.
 Digital Literacy
Many farmers lack the technical knowledge and skills required to operate
and maintain IoT and AI systems. Digital literacy is essential for effectively
utilizing these technologies, and its absence can hinder adoption.
 Infrastructure Gaps
Rural areas in India often suffer from inadequate digital infrastructure,
including unreliable internet connectivity and electricity supply. These gaps
must be addressed to ensure the effective functioning of IoT and AI systems.
 Recommendations for Enhancing Digital Agriculture
To overcome these challenges and fully realize the benefits of IoT and AI in
Indian agribusiness, several strategic recommendations are proposed:
 Government Support and Subsidies
The government should provide financial incentives and subsidies to
lower the initial investment costs for farmers. Additionally, substantial
investment in rural digital infrastructure is crucial to ensure reliable internet
connectivity and support the adoption of digital technologies.
 Farmer Education and Training
Implementing training programs to enhance digital literacy among
farmers is essential. Workshops, extension services, and demonstration
projects can help farmers understand and effectively use IoT and AI
technologies.

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 Development of Affordable Technologies

Encouraging the development of cost-effective IoT and AI solutions
tailored to the needs of smallholder farmers is vital. Innovations should focus
on creating user-friendly technologies that are easy to adopt and maintain.
 Public-Private Partnerships
Fostering collaborations between government agencies, technology
companies, and agricultural organizations can promote the adoption of
digital agriculture. These partnerships can provide farmers with access to
cutting-edge technologies and technical support.
 Policy Recommendations
Formulating policies that support the integration of digital technologies in
agriculture is necessary. These policies should address digital infrastructure,
cost, and accessibility to prevent exacerbating existing inequalities.
 Resource Management
Promoting the use of IoT-driven automated irrigation systems and AI
algorithms for predictive analytics can enhance crop management, pest
control, and supply chain efficiency, optimizing resource use and reducing
environmental impact.
 Market Integration
AI-driven market analytics and digital platforms that connect farmers
directly with buyers can help them secure better prices for their produce.
Enhancing farmers' access to markets can improve profitability and financial
stability.
 Addressing Barriers to Adoption
Identifying and addressing the barriers to the widespread adoption of IoT
and AI is crucial. Efforts should focus on reducing costs, enhancing digital
literacy, and developing robust digital infrastructure to ensure equitable
access to digital technologies.

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CONCLUSION
The integration of IoT (Internet of Things) and AI (Artificial Intelligence)
technologies into Indian agriculture represents a significant leap forward in the
modernization of this critical sector. The research presented in this paper
highlights the substantial positive impacts these technologies have on crop yield,
resource efficiency, and the overall economic well-being of farmers. However, the
study also identifies several challenges that need to be addressed to ensure the
widespread and equitable adoption of these technologies across the diverse
landscape of Indian agriculture.
1. Increased Crop Yield and Productivity
The data reveals that the adoption of IoT and AI technologies leads to
significant improvements in crop yield, with increases ranging from 15% to
22% depending on the crop and region. For instance, wheat farmers in Punjab
experienced an 18% increase in yield, while cotton farmers in Maharashtra saw
a 20% improvement. These gains are primarily driven by the precision and real-
time data provided by IoT devices, which enable farmers to make more
informed decisions about planting, irrigation, and pest control. AI's role in
predictive analytics further enhances productivity by allowing farmers to
optimize their agricultural practices based on accurate forecasts and historical
data.
These findings are consistent with global trends, where IoT and AI are
recognized as key drivers of precision agriculture, leading to higher yields and
more efficient use of resources. However, the extent of these benefits in India
is heavily influenced by regional factors, including climate, soil conditions, and
the level of access to digital infrastructure.
2. Enhanced Resource Utilization Efficiency
One of the most compelling advantages of IoT and AI in agriculture is the
improvement in resource utilization efficiency. The research shows significant
reductions in the use of water, fertilizers, and energy:
 Water Usage: IoT-based automated irrigation systems have reduced water
usage by up to 30% in states like Rajasthan. This is particularly important
in a country where water scarcity is a major concern, especially in arid and
semi-arid regions.
 Fertilizers: AI-powered precision fertilization has reduced fertilizer usage
by 25% in Gujarat, demonstrating that these technologies not only improve
crop yields but also promote more sustainable farming practices.
 Energy Consumption: AI-optimized pumping systems have led to an 18%
reduction in energy consumption in Karnataka, contributing to lower costs
and reduced environmental impact.
These findings underscore the potential of digital technologies to contribute
to sustainable agriculture in India by minimizing the overuse of inputs,
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reducing environmental footprints, and helping to mitigate the impacts of

climate change.
3. Economic Benefits for Farmers
The economic analysis indicates that the adoption of IoT and AI
technologies has a profound positive impact on farmers' profitability. The
research shows that average profits per hectare increased by 80%, from ₹20,000
to ₹38,000, following the adoption of these technologies. This increase is driven
by both a reduction in input costs and higher crop yields, as well as better
market prices achieved through AI-driven market analysis.
However, the economic benefits are not uniformly distributed across all
farmers. Large-scale farmers, who have better access to capital and
infrastructure, are more likely to adopt these technologies and reap the
associated benefits. In contrast, smallholder farmers, who constitute the
majority of the farming population in India, face significant barriers to
adoption, including high initial costs, lack of digital literacy, and limited access
to reliable internet connectivity.
4. Barriers to Adoption and Challenges
Despite the clear benefits, the adoption of IoT and AI in Indian agriculture
remains limited, particularly among smallholder farmers. The study identifies
several key barriers:
 Cost: The high initial investment required for IoT and AI technologies is a
major barrier for smallholder farmers, who often operate with thin margins
and limited access to credit.
 Digital Infrastructure: Poor internet connectivity in rural areas hampers the
effective deployment and utilization of these technologies. Without reliable
digital infrastructure, the potential of IoT and AI cannot be fully realized.
 Awareness and Training: There is a significant gap in awareness and
knowledge about these technologies among farmers. Even when
technologies are available, the lack of training and support often prevents
farmers from using them effectively.
 Policy and Support: While the government has launched several initiatives
to promote digital agriculture, there is still a need for more targeted policies
that address the specific needs of smallholder farmers. This includes
subsidies for technology adoption, investments in rural digital infrastructure,
and comprehensive training programs.
5. Policy Implications and Recommendations
The findings of this research have important implications for policymakers,
technology developers, and stakeholders in the agricultural sector:
 Investment in Digital Infrastructure: There is an urgent need for the
government to invest in improving digital infrastructure in rural areas. This

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includes expanding internet connectivity and providing reliable power
supplies, which are essential for the effective deployment of IoT and AI
technologies.
 Subsidies and Financial Support: To encourage the adoption of digital
technologies among smallholder farmers, the government should consider
providing subsidies or low-interest loans specifically aimed at reducing the
initial costs of these technologies.
 Farmer Training and Extension Services: Comprehensive training programs
should be developed to educate farmers about the benefits and usage of IoT
and AI. Agricultural extension services can play a crucial role in this, offering
hands-on training and support to farmers in rural areas.
 Public-Private Partnerships: Collaborations between the government, private
sector, and research institutions can drive innovation in digital agriculture.
Public-private partnerships can also help scale up successful pilot projects
and make technologies more accessible to a broader range of farmers.
5. Future Outlook
As India continues to modernize its agricultural sector, the role of IoT and
AI will become increasingly important. These technologies have the potential
to address some of the most pressing challenges facing Indian agriculture,
including low productivity, resource scarcity, and climate change. However,
realizing this potential requires a concerted effort to overcome the barriers to
adoption and ensure that all farmers, regardless of size or location, can benefit
from the digital agriculture revolution.

RECOMMENDATION
1. Government Support and Subsidies
 Financial Incentives and Subsidies
 Provide Financial Support: Offer subsidies and financial incentives to lower
the initial investment cost of IoT and AI technologies for farmers.
 Targeted Schemes: Develop schemes that specifically target smallholder
farmers to ensure they are not left behind in the digital revolution.
 Infrastructure Investment
 Digital Infrastructure: Invest in building robust digital infrastructure in rural
areas, including reliable internet connectivity and mobile networks, which
are essential for the functioning of IoT devices and AI applications.
 Public Wi-Fi: Establish public Wi-Fi hotspots in rural communities to provide
internet access to farmers who may not afford personal internet connections.
2. Farmer Education and Training
 Digital Literacy Programs

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 Training Workshops: Conduct regular workshops and training sessions to

educate farmers on the use of IoT and AI technologies. This includes
understanding how to operate the devices, interpret data, and apply insights
to farming practices.
 Extension Services: Utilize agricultural extension services to provide
continuous support and training to farmers, ensuring they can effectively use
digital tools.
 Awareness Campaigns
 Information Dissemination: Use various media channels such as radio,
television, and social media to spread awareness about the benefits and
applications of IoT and AI in agriculture.
 Demonstration Projects: Set up demonstration farms where farmers can see
the technology in action and understand its practical benefits.
3. Development of Affordable Technologies
 Cost-effective Solutions
 Affordable Devices: Encourage research and development of low-cost IoT
devices and AI applications tailored to the needs and financial capabilities of
smallholder farmers.
 Simplified Technologies: Develop user-friendly technologies that do not
require advanced technical knowledge to operate, making it easier for
farmers to adopt them.
 Innovation and Research Support
 Funding Research: Provide grants and funding opportunities for startups
and research institutions working on innovative agricultural technologies.
 Public-Private Partnerships: Promote partnerships between government
bodies, academic institutions, and private companies to accelerate the
development and deployment of affordable agricultural technologies.
4. Public-Private Partnerships
 Collaborative Efforts
 Industry Collaboration: Foster collaborations between government agencies,
technology firms, agricultural cooperatives, and NGOs to facilitate the
deployment of IoT and AI technologies.
 Shared Resources: Create platforms where resources, knowledge, and
technology can be shared among stakeholders to support widespread
adoption.
 Technical Support
 Advisory Services: Establish technical advisory services that provide on-
ground support to farmers for the installation, maintenance, and
troubleshooting of IoT and AI systems.

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 Tech Hubs: Set up agricultural tech hubs in rural areas where farmers can
access technological support and services.
5. Policy Recommendations
 Comprehensive Policies
 Incentive Programs: Formulate policies that provide tax breaks, low-interest
loans, and other financial incentives for adopting digital agriculture
technologies.
 Supportive Regulations: Develop regulations that support the integration of
IoT and AI in agriculture, ensuring they address issues such as data privacy,
cybersecurity, and technology standardization.
 Equitable Access
 Inclusive Policies: Ensure policies are inclusive and cater to both large-scale
farms and smallholder farmers to prevent exacerbating existing inequalities.
 Rural Focus: Prioritize policy interventions that focus on rural development
and the unique challenges faced by farmers in these areas.
6. Resource Management
 Efficient Water Use
 Automated Irrigation: Promote the use of IoT-driven automated irrigation
systems that optimize water usage by providing precise amounts of water
based on real-time soil moisture data.
 Water Conservation: Implement water conservation programs that leverage
technology to monitor and manage water resources effectively.
 Crop Management
 Predictive Analytics: Use AI algorithms to analyze data from IoT devices and
predict crop yields, identify optimal planting times, and manage pest
outbreaks.
 Resource Optimization: Optimize the use of fertilizers and pesticides through
precise application based on data insights, reducing waste and
environmental impact.
7. Market Integration
 Market Analytics
 AI-Driven Insights: Utilize AI to analyze market trends, predict demand, and
provide farmers with insights on the best times and places to sell their
produce, maximizing their profits.
 Real-time Data: Provide farmers with real-time market data through mobile
apps and other digital platforms to help them make informed decisions.
 Direct Market Access
 Digital Platforms: Develop and promote digital marketplaces that connect
farmers directly with buyers, reducing the dependency on middlemen and
ensuring better prices.

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 Logistics Support: Implement AI-powered logistics solutions to streamline

the supply chain, ensuring timely delivery of produce to markets.
8. Addressing Barriers to Adoption
 Reducing Costs
 Subsidized Equipment: Offer subsidies for purchasing IoT and AI
equipment, particularly targeting smallholder farmers.
 Financing Options: Provide financing options such as micro-loans and
installment payment plans to make technology more accessible.
 Enhancing Accessibility
 Infrastructure Development: Continue to develop and enhance rural digital
infrastructure, including reliable internet connectivity and electricity supply.
 Mobile Access: Ensure that IoT and AI applications are accessible via mobile
devices, which are more prevalent among rural populations.

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