The Role of Financial Technology in Transforming Agriculture

Financial technology (Fintech) has revolutionized various sectors by offering innovative solutions to persistent financial challenges. However, the agricultural sector in India, which employs roughly 46 percent of the country’s workforce and contributes 18 percent to the country’s GDP, continues to face significant financial constraints, including limited access to credit, high interest rates, and a lack of financial literacy. Agri-Fintech, a subset of Fintech, shows promise in meeting the financial requirements of farmers. By leveraging technologies, Agri-Fintech start-ups facilitate efficient credit disbursement, risk management, and market linkages. This paper examines the current status of Fintech in India and evaluates how Agri-Fintech facilitates financial inclusion and enhances farmers' livelihoods through innovative solutions. The study also analyses the services offered by Agri-Fintech startups and their role in addressing the financial challenges faced by farmers. It further identifies the key barriers hindering the adoption of Fintech in agriculture. Keywords: Agriculture, Fintech, Technology, Agri-Fintech startups