Investment Feasibility of Hydroponic Farming: Analysing the Return on Investment (ROI) Compared to Traditional Farming

The research examines the viability of investment in hydroponic farming in India through comparison with conventional soil cultivation based on the Return on Investment (ROI) ratio. Owing to greater urbanization, eroded soils, and escalated water scarcity, hydroponic farming is taking center stage as a revolutionary, eco-friendly measure. Besides making optimal use of space and water, the method of cultivation devoid of soil maximizes compliance with the increasingly prevailing consumer trend favoring pesticide-free, organic produce. The study's main aim is to assess the ROI of hydroponic farming compared to conventional agriculture, determine stakeholders' perceptions towards profitability and related risks, and determine the main factors affecting investment choices. Information was gathered through a structured questionnaire on a 5-point Likert scale distributed among a sample population of young investors and students in semi-urban regions. The research utilized percentage and frequency analysis to analyze responses. Findings reveal that most of the respondents— mainly between the age group of 18–25 years, possessing postgraduate qualifications, and having a moderate level of income—find hydroponic farming as a lucrative and eco-friendly activity. Even with the high initial investment cost, most of the participants were found to be ready to invest, if there is proper governmental intervention through subsidies and infrastructure development. Also, there is a widespread agreement on low-cost, scalable hydroponic models and learning platforms to make widespread adoption possible. The research proposes the establishment of investor-farmer linkage platforms, government-funded incentives, and hydroponic training centers in semi-urban areas to provide a link of knowledge and investment. The final note reiterates that, with its double ecological and economic benefit, hydroponic cultivation can become mainstream agriculture if backed appropriately, posing a great promise for future investments and sustainable crop production.