Factors driving Agri-startups incubation process in India: Challenges, opportunities and future directions

• Agriculture and allied sector contributes 17 % to India's GDP and needs innovation to address sector challenges. • RKVY-RAFTAAR program supports agri-entrepreneurs through training and financial grants. • Study used correlation analysis and questionnaires to understand applicant demographics. • Research examined education, gender, and innovation knowledge of program participants. • Findings aid development of agri-business incubation systems and accelerator programs. Agriculture and allied sectors, the backbone of the Indian economy, contributes around 17% to the Gross Domestic Product (GDP), yet face significant challenges that can be addressed through research and innovation. This study examines the agri-business startup incubation ecosystem in India through the Rashtriya Krishi Vikas Yojana – Remunerative Approaches for Agriculture and Allied Sectors Rejuvenation (RKVY-RAFTAAR) program that promotes potential agri-entrepreneurs /startups by providing them with adequate training and grant-in-aid support. We analysed applications received (2019–2022) at ICAR-NIVEDI’s incubation centre, NaaViC using correlation analysis and semi-structured questionnaires across four levels to understand the status of applicants in terms of their education, gender, knowledge on innovation, expectations from the incubator. The findings revealed that Karnataka state dominated applications across all sectors, with strong correlations between technology mechanization in veterinary and agriculture sectors (r 2 =0.82) and between IT & IoT and biotechnology in veterinary sectors (r 2 =0.86). Survey results ( n = 152 responses) showed that 78–79% of applicants were male, 37–38% aged 26–35 years, and 37–44% held postgraduate degrees. Social media emerged as the primary awareness channel (32–44%), while passion for innovation drove 32–42% of applications. Most applicants (71–78%) felt grant funding was insufficient. Expert committee evaluation prioritized business fit and technical knowledge over individual factors. The study identified critical gaps including need for sector-wise application sorting to avoid duplication, unified incubator platforms, and distinction between R & D and innovation. These findings provide evidence-based recommendations for enhancing India’s agri-business incubation systems and formulating an effective accelerator programs. Further,the study can be helpful for the development of a long-term plan for sustainable agri-business incubation systems in India by addressing the critical gaps in agriculture and allied sectors. The findings of the study could also guide in design of strategic incubation programs across the Global South especially in developing countries.