The agricultural sector is the backbone of India’s economy, contributing over 17% to the GDP and employing more than 50% of the workforce.
However, as agri business evolves to meet modern challenges like climate change, market competition, and technology adoption, access to funding becomes a crucial factor.
The Indian government, along with private organizations, offers agri business grants to encourage innovation, sustainability, and infrastructure development in the agricultural sector. In this blog, we’ll explore the top agri business grants in India, their benefits, and how you can apply for them to grow your business.
Why Agri Business Grants Matter in 2025
With agriculture contributing over 17% to India’s GDP and employing 50% of the population, modernizing agri businesses is critical. Grants are the bridge that connect traditional farming with smart, sustainable growth.
Agri grants support:
- Innovation using tech like AI, drones, and IoT
- Infrastructure like cold chains and food parks
- Sustainability through organic practices
- Market reach, including exports
Insight: Smart agri grants reduce operational costs by 20–30% while boosting farm income and resilience.
Top Agri Business Grants in India
Top 5 Government Agri Business Grants in India
1️. Agriculture Infrastructure Fund (AIF)
Purpose: Build post-harvest and storage infrastructure
Subsidy: 3% interest subvention on loans up to ₹2 Cr
Who Can Apply: FPOs, agri-startups, PACS, farmers, MSMEs
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2️. National Horticulture Mission (NHM)
Goal: Promote tech-based horticulture projects
Support: 40–50% subsidy on projects like nurseries, protected farming, cold units
Eligible: Farmers, SHGs, FPOs, agri-entrepreneurs
Learn how to present your proposal with our pitch deck preparation service
3️. Dairy Entrepreneurship Development Scheme (DEDS)
Purpose: Support hygienic dairy systems and equipment
Subsidy: 25–33% on milking/storage systems
Who Can Apply: Dairy farmers, cooperatives, MSMEs
Need faster financing? Explore our NBFC loan support
4️. Rashtriya Krishi Vikas Yojana (RKVY)
Focus: Modern farming systems and innovation
Funding: Support for mechanization, irrigation, value chains
Eligible: Farmers, startups, private agri firms
Align with Startup India certification to improve your eligibility
5️. PM Kisan Sampada Yojana (PMKSY)
Objective: Boost agri-processing to reduce waste
Support: Up to 50% subsidy on mega food parks, value-add infra
Who Can Apply: Food processors, startups, MSMEs
Need help with your business structure? Apply for Private Limited Company Registration
How to Apply for Agri Business Grants (Step-by-Step)
Applying is time-consuming. Egniol ensures faster, error-free submissions with guidance from start to sanction.
Work with experts to match grants to your goals — AIF for infra, NHM for farming, DEDS for dairy, etc.
Common requirements include:
- Registration Certificate
- FPO/MSME certification
- DPR with financial forecast
Need a custom DPR? Use our business pitch deck service
Your expert ensures correct submissions and follows up with authorities for timely disbursement.
Key Benefits of Agri Business Grants
| Benefit | Outcome |
|---|---|
| Access to Modern Tools | Use drones, sensors, automation |
| Higher Profit Margins | Reduce waste and add value |
| Sustainable Practices | Gain eco-certifications and incentives |
| Global Market Expansion | Build export-ready agri products |
Want end-to-end guidance? Visit our government loans advisory page
Real Success Stories
Built a cold chain system via AIF and cut waste by 40%. Revenue tripled within a year.
Installed milking automation under DEDS. Milk output up 25%, profits soared.
These are the kinds of impact-driven stories Egniol helps create through our MSME loan solutions
Conclusion: Grants Fuel Growth from Ground to Global
Agri business grants offer more than financial relief — they empower India 's agri ecosystem to scale, sustain, and thrive. Whether you need better equipment, infrastructure, or funding — now is the time to act.
Need help applying? Contact Egniol to get expert guidance, from MSME registration to pitch deck preparation and government grant filing.
FAQs on Agri Business Grants
1. Are agri grants only for large farms or processors?
No. Small farmers, cooperatives, FPOs, and even new startups can apply.
2. How long does approval usually take?
Grant timelines vary but typically range from 30–90 days, depending on documentation and fund type.
3. What is the role of MSME registration in agri grants?
It improves eligibility and unlocks access to targeted schemes and subsidies.
4. Can I combine a grant with a loan?
Yes! Many grants cover a portion of the cost, while loans or equity fill the rest.
About the author:
Jay D. Solanki
I am an expert in government grants and MSME funding with 5+ years of experience helping startups and small businesses like yours secure the right financial support. At Egniol, we specialize in guiding entrepreneurs through the often complex processes of government schemes and funding programs.
Disclaimer: The information presented in this blog is sourced from various online platforms and government portals.