How to Start an Agriculture Business in India 2026: Complete Planning Guide

The Indian agriculture industry was valued at approximately ₹109.7 Trillion in 2025 and is projected to grow at a CAGR of 9.68% through 2034. Agriculture offers opportunities across farming, livestock, agri-processing, storage, and exports. The investment required to start an agriculture business can range from ₹1 Lakh to ₹1.5 Crore, depending on the business type, scale, and location.

Agriculture remains one of India's key economic sectors and offers opportunities across farming, livestock, food processing, storage, and exports. Here are some reasons why many entrepreneurs consider starting an agriculture business:

• Diverse Business Opportunities

You can choose from crop cultivation, dairy farming, poultry farming, aquaculture, organic farming, agri-processing, and other allied activities.

• Growing Demand for Food Products

Rising population and changing consumption patterns continue to support demand for agricultural produce and value-added products.

• Government Support

Various schemes, subsidies, and financing programmes are available for eligible farmers and agribusiness owners.

• Scope for Value Addition

Businesses such as food processing, cold storage, and exports can help improve profitability beyond primary farming.

• Technology-Driven Growth

Modern farming methods, automation, and digital platforms can help improve productivity and market access.

Starting an agriculture business requires careful planning, regulatory compliance, and adequate funding. 

Here are the key steps to follow:

Initialise Your Business Plan

Decide the type of agriculture business you want to start, estimate costs, and set clear business objectives.

Research the Market

Identify your target customers, evaluate demand, analyse competitors, and select products or services with strong market potential.

Choose a Business Structure

Select an appropriate ownership model, such as a sole proprietorship, partnership, LLP, or private limited company.

Select a Suitable Location

Choose a location based on factors such as land availability, water access, soil quality, climate, and proximity to markets.

Set Up the Business Infrastructure

Arrange the necessary equipment, irrigation systems, storage facilities, livestock housing, greenhouses, or processing units, depending on your business type.

Arrange Funding

Assess your capital requirements and explore funding options such as business loans, government schemes, subsidies, or personal investment.

Complete Legal Documentation

Gather essential identity, address, land ownership or lease documents, and any business-related paperwork.

Register Your Business

Complete the required registrations, including Udyam Registration if applicable.

Obtain Licences and Approvals

Secure any licences required for your business activities, such as FSSAI, APMC, Organic Certification, or other sector-specific permits.

Complete GST Registration

Register for GST if your business meets the applicable eligibility criteria.

To legally operate an agricultural business in India, certain registrations and licenses are required:

FSSAI Registration

For food businesses such as dairy or processed foods, obtaining a Food Safety and Standards Authority of India (FSSAI) registration is mandatory.

GST Registration

If your business turnover exceeds the prescribed threshold, registration for Goods and Services Tax (GST) is required.

Land Ownership Certificate

Ensure that you have clear documentation of land ownership or lease agreements for farming activities.

Pesticide and Fertiliser Licenses

If your business involves the sale or use of pesticides and fertilisers, you must obtain the relevant licenses as per Indian regulations.

Animal Husbandry Registration

For livestock-based businesses like poultry or dairy farming, animal husbandry registrations may be required.

Starting an agriculture business often requires significant investment for land, equipment, infrastructure, inputs, and working capital. 

Here are some common financing options to consider:

Self-Funding

Using your personal savings or family funds can help you start operations without taking on debt. This approach reduces interest costs and gives you greater control over business decisions.

Business Loans from Banks and NBFCs

Business loans can help finance expenses such as equipment, irrigation systems, storage facilities, livestock, seeds, and working capital. Compare interest rates, loan amounts, processing fees, and repayment tenures before applying.

Government Schemes (MUDRA, PMEGP, CGTMSE)

Eligible entrepreneurs can explore government-backed schemes that offer financial assistance, collateral-free loans, credit guarantees, or subsidies. Popular options include MUDRA, PMEGP, and CGTMSE.

Microfinance and SHG Loans

Small-scale farmers, rural entrepreneurs, and self-help group (SHG) members may access microfinance loans for initial business setup and expansion. These loans often have simpler eligibility requirements and smaller borrowing limits.

Applying for a business loan on Bajaj Markets is simple, fast, and entirely digital. Here are the steps you can follow to apply online:

• Step 1: Select the ‘CHECK LOAN ELIGIBILITY’ button on this page
  

• Step 2: Enter your personal and business information in the form
  

• Step 3: Pick a lender from the provided list
  

• Step 4: Select your preferred loan amount and repayment duration
  

• Step 5: Submit the application form for review

The Indian government offers several schemes to support SMEs (Small and Medium Enterprises) and MSMEs (Micro, Small, and Medium Enterprises) venturing into agriculture, providing financial aid, infrastructure support, and skill development. The table below highlights key central government initiatives that agriculture businesses can leverage to grow and sustain their operations:

Central Government Schemes for SMEs/MSMEs

State Government Schemes for SMEs or MSMEs

Disclaimer: These Central and State Government schemes may or may not be applicable to secure business funds for opening a car dealership in India. It is crucial to check the eligibility criteria and other terms and conditions of any scheme you are interested in before applying.

Starting an agriculture business in India can be highly profitable and rewarding. However, it requires careful planning, the right resources, and financing. Business loans play an essential role in ensuring the smooth operation of an agricultural venture. Bajaj Markets provides easy access to loans with flexible terms and competitive interest rates, making it easier for you to realise your agricultural business goals.