Innovation and Agri-Entrepreneurship Development under RKVY/Incubators

Introduction 

Innovation and Agri-Entrepreneurship Development under RKVY/Incubators is a scheme launched by the Government of India in 2018-19 under the Rashtriya Krishi Vikas Yojana (RKVY). The program aims to promote innovation and entrepreneurship in agriculture by providing financial and technical support to startups and agripreneurs. This initiative addresses the challenge of limited opportunities and resources for young entrepreneurs to develop new technologies, products, and services in the agriculture sector. It helps bridge the gap between research and market application, enabling innovations to reach farmers effectively.

The scheme targets farmers, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs), and startups engaged in agriculture and allied sectors. It provides grants-in-aid at the idea/pre-seed stage up to Rs. 5 lakh and seed stage funding up to Rs. 25 lakh to support development and scaling of agri-business ideas. The scheme also strengthens agribusiness incubators across India to nurture startups through mentoring, training, and infrastructure support.

By fostering a supportive ecosystem, this agriculture scheme promotes job creation, enhances farmer income, and encourages the use of modern technologies in farming. Its eligibility covers startups incubated at the selected RKVY-RAFTAAR Agribusiness Incubators, making application and benefit access straightforward for eligible applicants in India.

This program highlights the Government of India’s commitment to modernizing agriculture through innovation and entrepreneurship, positively impacting rural livelihoods and the agricultural economy.

Overview of the Scheme

The Innovation and Agri-Entrepreneurship Development programme is implemented by the Department of Agriculture & Farmers’ Welfare, Government of India, under the Rashtriya Krishi Vikas Yojana (RKVY) framework. This initiative was launched in 2018-19 as part of the revamped RKVY-RAFTAAR scheme to promote innovation and entrepreneurship in agriculture through financial and technical support.

The programme operates with the help of 5 Knowledge Partners and 24 Agribusiness Incubators (R-ABIs) across India to train and nurture agri-startups. It provides funding support up to ₹5 lakh for idea/pre-seed stage and up to ₹25 lakh in the seed stage to eligible startups in agriculture and allied sectors. The funds enable entrepreneurs to develop, launch, and scale innovative products and services. The Central Government fully funds this program as part of the overall RKVY-RAFTAAR scheme, which has a funding pattern of 60:40 between the Centre and States in most cases, and 90:10 for northeastern and hilly states.

Coverage includes sectors such as precision agriculture, farm mechanization, food processing, post-harvest technologies, organic farming, and supply chain management. The scheme is ongoing and continues to empower over 1,700 agri-startups, offering support through incubation, mentoring, and national-level promotion events.

Example: A startup developing a low-cost soil sensor could receive funding and mentoring to bring their innovation to market, helping farmers improve productivity sustainably.

Key points:

• Launched by: Department of Agriculture & Farmers’ Welfare, Government of India, 2018-19
• Implementing agencies: 5 Knowledge Partners, 24 Agribusiness Incubators (R-ABIs)
• Funding pattern: 100% central for the program under RKVY; RKVY overall 60:40 (Central:State), 90:10 for northeast/hilly states
• Coverage: Innovation, entrepreneurship, farm mechanization, food processing, precision agriculture, organic farming, post-harvest tech, supply chain
• Status: Ongoing under RKVY-RAFTAAR, part of wider national agriculture scheme ecosystem

This overview explains the structure, funding, coverage, and ongoing support of the Innovation and Agri-Entrepreneurship Development under RKVY, helping readers understand its role in India’s agricultural growth.

Objectives 

The Innovation and Agri-Entrepreneurship Development under RKVY/Incubators has clear and focused objectives designed to foster growth in India’s agricultural sector through innovation and entrepreneurship. These objectives aim to support new ideas and businesses that can improve farming practices, productivity, and farmer incomes.

The main goals include:

• Promote innovation and the use of modern technology in agriculture and allied sectors.
• Support agri-startups and entrepreneurs by providing financial assistance and mentorship for their sustainable growth.
• Enhance agricultural productivity by encouraging the development and adoption of new tools, practices, and solutions.
• Develop agribusiness infrastructure, including incubation centers, to nurture startups and agripreneurs.
• Create employment opportunities in rural and agricultural areas through new ventures.
• Build a strong ecosystem for agri-entrepreneurship by organizing national-level programs such as fairs, workshops, and networking events.
• Encourage participation of youth, women, and marginalized groups in agriculture through skill development and targeted support.
• Facilitate market linkages to help startups and farmers connect with broader markets.
• Promote sustainable and profitable farming models through value addition and risk mitigation.

These objectives underscore the purpose of the scheme as a comprehensive agriculture scheme aiming to modernize farming by integrating entrepreneurship and innovation for long-term benefits.

Key Features / Benefits 

The Innovation and Agri-Entrepreneurship Development under RKVY/Incubators offers a range of important benefits designed to support and grow agri-startups and entrepreneurship in agriculture. These features help new ideas turn into real products and services that can benefit farmers and the broader agricultural community.

• Financial Grant for Idea Stage

Startups receive a grant of up to ₹5 lakh to develop their initial concept or prototype. (Example: A young entrepreneur working on a new farm sensor can get up to ₹5 lakh to build a working model.)

• Seed Stage Funding Support

Eligible startups may be granted up to ₹25 lakh to scale their business after initial validation. (Example: A startup refining organic pesticide production can receive ₹25 lakh seed money.)

• Incubation and Mentoring

Selected startups get access to incubation facilities including mentorship, labs, and business guidance at RKVY-RAFTAAR Agribusiness Incubators (R-ABIs).

• Skill Development and Training Assistance

The scheme funds training and internship programs for agripreneurs to enhance their entrepreneurial skills.

• Wide Sector Coverage

Supports innovations in precision agriculture, farm mechanization, food processing, post-harvest technology, organic farming, and supply chain management.

• 100% Central Government Funding

Grants under this program are fully funded by the Central Government, ensuring no financial burden on startups for incubation support.

• Encouragement for Youth and Women Entrepreneurs

Special emphasis on including youth and women in agri-business to promote inclusive growth.

• Networking and Market Linkage Support

Facilitates connections between startups, industry experts, and markets to improve business opportunities.

• Strengthening of Agribusiness Incubators

The program funds existing and new agribusiness incubators, improving infrastructure for nurturing innovations.

• Focus on Sustainable and Value-added Agriculture

Supports startups working on sustainable farming and value addition to enhance farmer income.

These benefits ensure the Innovation and Agri-Entrepreneurship Development under RKVY/Incubators is a comprehensive agriculture scheme that nurtures new ventures, promotes inclusivity, and advances agricultural technology in India.

Eligibility Criteria 

The Eligibility for Innovation and Agri-Entrepreneurship Development under RKVY/Incubators is clearly defined to ensure the right beneficiaries receive support. Different groups such as farmers, SHGs, FPOs, entrepreneurs, and startups have specific criteria to qualify.

• Farmers:

Eligibility focuses on active involvement in agriculture, residing in India, and having valid identification documents like Aadhaar. Proof of landholding or farming activity may be required to confirm their farming status and residence, ensuring the scheme supports genuine farmers.

• Self Help Groups (SHGs):

SHGs must be formally registered and actively functioning. They need a linked bank account for financial transactions, confirming their operational status and financial transparency.

• Farmer Producer Organizations (FPOs):

FPOs should be registered under the Cooperative Societies Act or relevant producer company laws. They require a minimum number of members and must demonstrate active operations in agriculture, proving their collective role in farming communities.

• Entrepreneurs/Startups/MSMEs:

Applicants should be registered legal entities in India under appropriate laws such as the Companies Act or UDYAM registration if applicable. Startups must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) and have completed at least two months residency at an RKVY-RAFTAAR Agribusiness Incubator (R-ABI).

• Special Categories:

The scheme encourages participation from women, SC/ST communities, and entrepreneurs from northeast and hilly areas, though specific relaxations or benefits are subject to official norms.

• Not Eligible:

Subsidiaries of multinational corporations or foreign companies are not eligible. Duplicate funding for the same business idea from other government schemes is excluded.

• Documents needed typically include Aadhaar, registration certificates, project reports or detailed business plans, bank passbooks, and quotations for proposed activities. These documents verify identity, eligibility, and preparedness to carry out the planned innovations.

Application Process

The application process for Innovation and Agri-Entrepreneurship Development under RKVY/Incubators is straightforward and designed to support startups and entrepreneurs efficiently. Below is a clear, numbered step-by-step guide based on official sources:

Where to Apply

Applicants need to submit proposals through the official RKVY-RAFTAAR portal or authorized state agricultural departments. There is no public dedicated URL mentioned; typically, government nodal divisions and agribusiness incubators handle applications. One official link is agristartup.gov.in, the dedicated agriculture startup portal.

Registration/Login

First-time applicants must register on the official portal or with an approved Agribusiness Incubator (R-ABI). This involves providing basic personal or entity details and creating login credentials.

Filling the Application Form

Applicants complete the form with sections including beneficiary details (individual/organization), land or farm details if applicable, detailed project or business proposal, component selection under the scheme, and bank account information for fund transfer.

Documents to Upload

Mandatory documents usually include: identity proof (Aadhaar), residency proof, landholding documents (farmers), registration certificates (for startups, SHGs, FPOs), detailed Project Report (DPR), quotations for proposed purchases, bank passbook copies.

No Application Fee

There is no fee charged for submitting the application under this scheme.

Acknowledgment & Application ID

Upon successful submission, applicants receive an acknowledgment with a unique application ID for future reference and tracking.

Verification & Field Inspection

Authorities or incubators may conduct verification and field inspection to validate the applicant’s eligibility, business viability, and project details.

Approval and Timeline

The proposal is evaluated by a panel of experts following which approval is granted. The timeline may vary but official communications usually mention a few months for the entire process.

Release of Assistance

Funds are released in installments or through direct benefit transfer (DBT) after reaching predefined milestones and submission of periodic progress reports.

Offline Submission Option

Where online submission is not feasible, applicants can approach nearest agriculture offices, Krishi Vigyan Kendras (KVKs), ATMA offices, or Block Agriculture offices for guidance and submission support.

Helpline and Support

For assistance, applicants can contact the Nodal Division of RKVY-RAFTAAR at the Department of Agriculture Cooperation & Farmers Welfare, Krishi Bhawan, New Delhi. Phone: 011-23382444; Email contacts are available on the official ministry portal.

Tips to Avoid Common Mistakes:

• Ensure all names in documents and application forms exactly match.
• Upload correct and complete documents as per checklist.
• Submit the application before deadlines to avoid rejection.
• Provide detailed and realistic project/business proposals for smooth evaluation.

This clear process helps beneficiaries easily apply online or offline, track their application, and receive support under the Innovation and Agri-Entrepreneurship Development under RKVY/Incubators agriculture scheme.

Challenges or Limitations 

Challenges and Limitations of Innovation and Agri-Entrepreneurship Development under RKVY/Incubators are important to understand for smoother participation and better outcomes. These common issues are generally recognized by departments and official sources, with practical tips to manage them:

• Delay in Verification and Approval

The process requires thorough verification which can cause delays.

What to do: Keep all documents ready, accurate, and updated to speed up verification.

• Limited Budget Availability

Funding under the scheme depends on the annual allocation and utilization; shortfalls can delay support.

What to do: Apply early and maintain clear communication with incubators and officials for timely updates.

• Seasonal Agriculture Cycles Affecting Project Timing

Agricultural activities have seasonal windows that may clash with scheme timelines.

What to do: Plan the project phases considering farming seasons to align with the funding and implementation schedule.

• Document Mismatch or Incomplete Submission

Incorrect or missing documents are a common cause for rejection or delay.

What to do: Follow the document checklist strictly and double-check before submission.

• Technology Adoption Resistance Among Farmers

Innovations sometimes face slow acceptance from traditional farmers.

What to do: Include farmer outreach, demonstration, and training in your project plan to build trust and adoption.

• Limited Market Access for Startups

Startups may struggle to find markets for their agri-innovations.

What to do: Use incubation support to build market linkages and partnerships early.

• Infrastructure and Skilled Manpower Constraints at Incubators

Some incubators may lack sufficient facilities or trained staff.

What to do: Choose incubators with proven capacity and engage with their mentoring programs actively.

• Overlap with Other Schemes Causing Eligibility Issues

Applying for similar support from multiple schemes can lead to disqualification.

What to do: Verify all ongoing benefits and declare them honestly on the application to avoid duplication.

These challenges and practical solutions help applicants navigate the Innovation and Agri-Entrepreneurship Development under RKVY/Incubators scheme smoothly, increasing chances of success and positive impact.

Government Support & Future Outlook 

The Innovation and Agri-Entrepreneurship Development under RKVY/Incubators has strong connections with other key agricultural missions, enabling better support for farmers and agripreneurs through scheme convergence. This linkage helps leverage resources and services across programs for more comprehensive benefits.

The scheme aligns closely with initiatives like PM-KISAN, PMFME (Pradhan Mantri Formalisation of Micro food processing Enterprises), PMFBY (Pradhan Mantri Fasal Bima Yojana), and ATMA (Agricultural Technology Management Agency). By combining support from these schemes, farmers and Farmer Producer Organizations (FPOs) can access financial aid, insurance, marketing assistance, and innovation funding in a coordinated manner. For example, an FPO funded under RKVY incubators for precision agriculture tools can also get crop insurance under PMFBY and marketing support through PMFME, enhancing profitability and risk protection.

RKVY-RAFTAAR, which includes this incubator program, was revamped in 2017-18 and continues to be active with ongoing funding and expansion plans. The Ministry of Agriculture has increased funding to foster over 300 agritech startups by 2024-25, showing future plans to scale support and innovation further.

This convergence and updated focus create a strong ecosystem for agripreneurs and farmers, promoting sustainable agriculture and rural economic growth through integrated government efforts and future-ready innovations.

Key points:

• Scheme convergence with PM-KISAN, PMFME, PMFBY, ATMA
• Enables holistic support for farmers/FPOs from finance to technology
• Revamped under RKVY-RAFTAAR in 2017-18, ongoing funding support
• Increased startup funding with future scaling plans till 2025
• Promotes integrated agriculture growth and innovation ecosystem

This linkage and future roadmap emphasize the scheme’s role as part of a broader national strategy for agricultural modernization and entrepreneurial growth.

Conclusion 

The Innovation and Agri-Entrepreneurship Development under RKVY/Incubators is a key scheme that fosters innovation and entrepreneurship in India’s agriculture sector. It primarily benefits startups, young entrepreneurs, farmers, and Farmer Producer Organizations (FPOs) by providing technical mentorship, financial grants, and incubation support to develop and scale new agri-business ideas. By encouraging modern technologies and business models, the scheme helps improve farm productivity and rural livelihoods.

Those interested should begin by checking their eligibility and application details on the official agriculture startup portal, agristartup.gov.in. Preparing documents carefully and understanding the scheme guidelines early can ease the application process and increase success chances.

Readers are gently reminded to verify the latest scheme updates, deadlines, and detailed criteria on the official portal or through the designated helpline before applying. This ensures access to current benefits and avoids common pitfalls while applying under the Innovation and Agri-Entrepreneurship Development under RKVY/Incubators.

Explore detailed resources on this scheme and the full suite of programmes at ALL ABOUT AGRICULTURE. For one-on-one assistance, call us at +91 8484002620.