Swadeshi-style startups breathing life into rural economy, generating employment

Kolkata: India cannot be imagined without its rural hinterland and the vast rural economy is being invigourated by Swadeshi startups that are based on indigenous practices and resources. These ventures draw upon the age-old Ayurvedic practices of India. It also creates an economic ecosystem that links local farmers, women groups, small entrepreneurs. The resources, practices, consumers and markets are India’s own having drawn nourishment from the centuries-old traditions of India.

A significant part of the raw materials and resources are medicinal plants such as tulsi, neem, turmeric, ashwagandha etc. These are cultivated organically and numerous village-based processing units turns them into extracts, oils and powders. apart from linking producers, processors and users, these ventures provide an invaluable service to the economy — they prevent migration of workers from the rural areas to the cities. It is achieved by generating employment for both males and females at the village level from production to processing from packaging to delivery and sales of the products in the countryside. The wellness and agrifood sectors are two domains where these startups are becoming active quickly.

Grassroot-level employment

Developing job opportunities at the grassroots level is the key challenge of policymakers. Ayurveda-driven startups serve this purpose well by generating livelihoods at the local level. The process starts with the cultivation of medicinal flora. Medicinal plants offer a way of crop diversification for the local farmers. Once the crop is harvested, the raw material moves to processing plants where they offer employment opportunities to local women. Young men from the villages also find employment in these units.

The model can also work in large-scale units which Patanjali has proved. This company has adopted organic cultivation. The net result of this model: farmers get more remunerative prices for their crops.

Challenges for the sector

Needless to say, like any other industry sectors, swadeshi startups too face difficulties. The obstacles typically relate to the financing and technology, both of which are required to scale up these units. Another challenge is maintaining uniform quality standards. For some products certification needs are also there. Also in these startups formal training is one of the vital needs that are not widely found. If these gaps can be addressed, vast opportunities wait for this sector. Rural incubation programs are gradually coming up to offer a platform to rural entrepreneurs. The two basic requirements are hand holding of the entrepreneurs for the initial years and providing them access to markets.