Investment Feasibility of Hydroponic Farming: Analysing the Return on Investment (ROI) Compared to Traditional Farming


Authors : Dr. Shakeela Banu C; Akshaya T; Akshaya M; Amisha Prabhu N; Akshith B E; Ganta Chandra Sekhar; Amatoor Rahman

Volume/Issue : Volume 10 - 2025, Issue 5 - May


Google Scholar : https://tinyurl.com/5hfke5hr

Scribd : https://tinyurl.com/37utkn2y

DOI : https://doi.org/10.38124/ijisrt/25may163

Google Scholar

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Note : Google Scholar may take 15 to 20 days to display the article.


Abstract : The research examines the viability of investment in hydroponic farming in India through comparison with conventional soil cultivation based on the Return on Investment (ROI) ratio. Owing to greater urbanization, eroded soils, and escalated water scarcity, hydroponic farming is taking center stage as a revolutionary, eco-friendly measure. Besides making optimal use of space and water, the method of cultivation devoid of soil maximizes compliance with the increasingly prevailing consumer trend favoring pesticide-free, organic produce. The study's main aim is to assess the ROI of hydroponic farming compared to conventional agriculture, determine stakeholders' perceptions towards profitability and related risks, and determine the main factors affecting investment choices. Information was gathered through a structured questionnaire on a 5-point Likert scale distributed among a sample population of young investors and students in semi-urban regions. The research utilized percentage and frequency analysis to analyze responses. Findings reveal that most of the respondents— mainly between the age group of 18–25 years, possessing postgraduate qualifications, and having a moderate level of income—find hydroponic farming as a lucrative and eco-friendly activity. Even with the high initial investment cost, most of the participants were found to be ready to invest, if there is proper governmental intervention through subsidies and infrastructure development. Also, there is a widespread agreement on low-cost, scalable hydroponic models and learning platforms to make widespread adoption possible. The research proposes the establishment of investor-farmer linkage platforms, government-funded incentives, and hydroponic training centers in semi-urban areas to provide a link of knowledge and investment. The final note reiterates that, with its double ecological and economic benefit, hydroponic cultivation can become mainstream agriculture if backed appropriately, posing a great promise for future investments and sustainable crop production.

Keywords : Hydroponic Farming, Traditional Farming, Return on Investment (ROI), Investment Feasibility, Organic Farming, Government Incentive, Investor Perception, Agricultural Innovation.

References :

  1. Brown, T., et al. (2017). Traditional Farming and Market Dynamics.
  2. Chen, L., & Lee, J. (2020). Economic Viability of Hydroponic Systems.
  3. Grewal, H., et al. (2020). Resource Utilization in Soilless Cultivation.
  4. Jones, M. (2021). Hydroponics: Infrastructure and Investment Costs.
  5. Kumar, R., et al. (2021). Risk Mitigation in Hydroponic and Traditional Farming.
  6. Mehra, P., & Gupta, R. (2019). Challenges in Modern Farming Techniques.
  7. Nguyen, D., et al. (2022). Comparative Yield Analysis of Farming Methods.
  8. Rahman, M., & Zhao, L. (2021). Market Potential of Hydroponically Grown Produce.
  9. Smith, J., et al. (2020). Investment Strategies in Conventional Farming.
  10. Patel, A., & Verma, S. (2019). Cost-Effectiveness of Hydroponic Farming.

The research examines the viability of investment in hydroponic farming in India through comparison with conventional soil cultivation based on the Return on Investment (ROI) ratio. Owing to greater urbanization, eroded soils, and escalated water scarcity, hydroponic farming is taking center stage as a revolutionary, eco-friendly measure. Besides making optimal use of space and water, the method of cultivation devoid of soil maximizes compliance with the increasingly prevailing consumer trend favoring pesticide-free, organic produce. The study's main aim is to assess the ROI of hydroponic farming compared to conventional agriculture, determine stakeholders' perceptions towards profitability and related risks, and determine the main factors affecting investment choices. Information was gathered through a structured questionnaire on a 5-point Likert scale distributed among a sample population of young investors and students in semi-urban regions. The research utilized percentage and frequency analysis to analyze responses. Findings reveal that most of the respondents— mainly between the age group of 18–25 years, possessing postgraduate qualifications, and having a moderate level of income—find hydroponic farming as a lucrative and eco-friendly activity. Even with the high initial investment cost, most of the participants were found to be ready to invest, if there is proper governmental intervention through subsidies and infrastructure development. Also, there is a widespread agreement on low-cost, scalable hydroponic models and learning platforms to make widespread adoption possible. The research proposes the establishment of investor-farmer linkage platforms, government-funded incentives, and hydroponic training centers in semi-urban areas to provide a link of knowledge and investment. The final note reiterates that, with its double ecological and economic benefit, hydroponic cultivation can become mainstream agriculture if backed appropriately, posing a great promise for future investments and sustainable crop production.

Keywords : Hydroponic Farming, Traditional Farming, Return on Investment (ROI), Investment Feasibility, Organic Farming, Government Incentive, Investor Perception, Agricultural Innovation.

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.
Subscribe
OR

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.
Subscribe