Hydroponic farming in India is emerging as a rewarding innovation in the field of modern agriculture. The Indian hydroponics market itself is expected to reach ₹19,030 crore by 2033. This is why many farmers and entrepreneurs alike are looking to start hydroponic farming in India.

Hydroponic farming is an innovative method to grow plants without the use of soil. It uses a nutrition-rich water solution to grow plants in a controlled area. In this blog, we will understand everything about hydroponic farming in India.

What is Hydroponic Farming?

Hydroponic farming, also known as soil-less farming in India, is a method of growing vegetables without using soil. This advanced agricultural technique allows plants to grow without soil by directly absorbing essential minerals and nutrients from water.

This method uses different systems like nutrient film technique (NFT), deep culture, and drip irrigation. It helps to maintain the desired nutrient balance and oxygen supply. The plants grow in a controlled environment, which eliminates soil-borne disease, unpredictable weather, and pest issues.

Hydroponic farming in India is gaining popularity as it is being adopted by startups, agri-entrepreneurs, and individual farmers who want to produce high-quality vegetables, herbs, and fruits.

Benefits of Hydroponic Farming vs Traditional Farming

Many farmers in India and new-age entrepreneurs are switching from traditional farming to hydroponic farming for all the benefits it offers.

• No Soil Usage: In hydroponic farming, crops are cultivated through nutrient-rich water rather than soil. This helps you to control which nutrients you want for the plant.
• Water Efficiency: Hydroponic farming uses 90% less water than conventional farming. This makes it suitable for regions that face water scarcity.
• Higher Yields: Hydroponic farming allows you to control factors like temperature, PH, and nutrients. It maximises growth and can produce yields 10 times higher than those in traditional farming.
• Controlled Environment: Traditional farming is influenced by temperature, humidity, light, and nutrients. At the same time, hydroponic farming helps you control variables that help to optimise plant growth and boost yields.
• Space Requirements: With the help of vertical farming, you can produce more crops in a smaller area. Hence, urban farming becomes ideal for areas with limited land availability.

Investment Required for Urban Farming Startup

Hydroponic farming helps you start an urban farming startup, but it requires careful planning, knowledge, and a well-structured investment approach. The upfront investment in a hydroponic farm depends a lot on factors like the type of system, crop selection, and location.

Perticulars	Cost
Initial Investment	₹2 – ₹3 lakh
Utilities	₹20,000/month
Labour	₹20,000/month
Seeds/seedlings	₹10,000/month
Nutrients	₹10,000/month
Other Expenses	₹10,000/month

The setup can range from ₹5 lakh for a small rooftop to ₹50 lakh or more for fully automated commercial units. Some of the essential components you will need are grow trays, nutrient pumps, pH and EC meters, LED lighting and temperature control systems.

As hydroponic farming is a form of soilless farming in India, it eliminates the need for fertile land. Water nutrient supply will require the installation of reservoirs, dosing dumps, and nutrient solutions. This can cost you ₹1-3 lakh. Operational cost can be around ₹5-7 lakh per year.

Most Suited Crops for Hydroponic Farming in India

There are several crops that are suitable for hydroponic farming in India, which makes them an ideal choice for urban and commercial growers. Some of the most popular crops for hydroponic farming in India are as follows:

• Lettuce
• Spinach
• Kale
• Swiss chard
• Basil
• Mint
• Parsley
• Cilantro
• Tomatoes
• Cucumbers
• Capsicum
• Strawberries
• Zucchini
• Bell peppers
• Cherry tomatoes

Subsidy on Hydroponic Farming in India

The Indian government is actively supporting hydroponic farming in order to enhance sustainable and technology-driven agriculture. There are several central and state government initiatives to help farmers and startups adopt this modern method.

• Under the National Horticulture Mission (NHM) and Mission for Integrated Development of Horticulture (MIDH), entrepreneurs can get a hydroponic subsidy in India of up to 50% on infrastructure, greenhouse, and equipment costs.
• The National Bank for Agriculture and Rural Development (NABARD) offers low-interest loans to encourage soil-less farming ventures.
• Many states, like Maharashtra, Karnataka, and Telangana, also provide additional incentives for hydroponic and greenhouse farming projects.

Several agricultural universities and Krishi Vigyan Kendra organise training programs. This helps new entrepreneurs understand system design, crop selection, and nutrient management.

Challenges of Hydroponic Farming in India

Despite having so many benefits, hydroponic farming has its own challenges, which are as follows:

• High Initial Setup Cost: There is a high initial setup cost involved. The costs include greenhouse construction, LED lighting, nutrient dosing equipment, etc.
• Nutrient Management Problem: Hydroponic farming depends a lot on the nutrient system. A slight imbalance in it can affect plant health.
• Market Awareness: Consumers are still getting aware of hydroponically grown plants. Hence, it requires strategic marketing.
• System Failures: Any malfunction or disruption in the system can directly impact the crop’s health and yield. Regular maintenance and monitoring are needed.
• Dependence on Electricity: Hydroponic systems heavily rely on electricity for power, lighting, pumps, and climate control systems. This dependency increases operational costs and vulnerability to power cuts.

Soil-less farming in India is bringing a revolutionary shift in the country’s agricultural landscape. It addresses challenges like water scarcity, shrinking arable land, and climate unpredictability. With increasing urbanisation, hydroponic farming offers a practical, profitable, and eco-friendly alternative to traditional farming.

Once you have started your urban farming startup, you will need funds to grow your business. You can apply for a business loan with DMI Finance and get up to ₹25 lakh for business growth and expansion. The key benefit is that it allows you to repay the loan flexibly in 36 months.

Frequently Asked Questions (FAQs)

1. What are the main challenges in commercial hydroponic farming?

Common challenges you face in commercial hydroponic farming are high initial setup costs, water quality concerns, pest control, and a lack of skilled labour.

2. How to solve the nutrient problem in hydroponic farming?

With the use of automated nutrient systems and conducting regular water testing, plant tissue balance can be ensured.

3. Do hydroponic plants test better?

There is a misconception that hydroponic plants will taste watered down, but this is not true. As the crops grown in hydroponic farming can be grown closer to consumers than traditional crops, they tend to taste fresher and better.

4. How much time does it take to grow plants through hydroponic farming?

This largely depends on the type and variety of crop grown. Still, most of the crops can be harvested in 30-45 days.

5. What is the biggest concern for new hydroponic farmers in India?

The primary barriers are a lack of technical knowledge and high setup costs.

6. Is pest control needed in hydroponics?

Pest control is needed, especially in greenhouse environments where pests like whiteflies and thrips exist.

7. Is hydroponic farming profitable in India?

Hydroponic farming in India is a highly profitable business. This is because there is an increase in demand for organic and fresh produce.

8. Which are the best crops for hydroponic farming in India?

Leafy greens like lettuce, spinach, and kale are ideal. Herbs such as basil, mint, and coriander are very favourable.

9. What are the main types of hydroponic systems?

Popular systems include Nutrient Film technique (NFT), Deep Water Culture (DWC), Drop system, Wick system, and Aeroponics.

10. How long is the lifespan of hydroponic systems?

A properly maintained hydroponic system can survive for at least 10-15 years. Components like LED lights or pumps can need replacement every 3-5 years.

Disclaimer: The business ideas shared in this blog are based on research and trends. DMI Finance does not recommend or guarantee it. Starting a business involves risk—please use your own judgment and discretion. DMI Finance is not liable for any loss or outcome resulting from actions taken based on this content.