Modern agricultural machinery such as harvesting robotic arms are necessary to optimize the semi-automated agricultural processes to meet the ever-growing food needs of the population of the world. Production of low cost and highly efficient robotic arms are needed to meet the needs of the small-scale growers of underdeveloped countries. In this regard, mechanical design, sensor placement, and object identification are essential to optimize the performance of agricultural robots. This research is conducted to design a fully automated robotic arm for fruit picking in hydroponics system and research farm using machine vision to help the smallholders. For this purpose, a robotic arm with 1.3 m in height is designed using aluminum (18-gauge) and mild steel (MS-16) as fabrication material for the mechanical structure. The prototype design is tested for stress estimation at various payloads using SolidWorks simulations. The proposed robotic arm is based on a four degrees of freedom (4-DoF) design with the gripper having an opening range of 5.5 to 12 cm depending upon the task to handle various objects. The robotic arm is installed on an expandable vertical mobile platform that enables an expanded operational workspace with lower energy consumption. The total weight of the robotic arm is 60 kgs housing a payload capacity ranging between 8 and 10 kgs in accordance with industry-standard load-bearing specifications. The inverse kinematic algorithm using DH-table is computed with an accuracy of up to 95 % and target height of gripper is cross checked by mounting the ultrasonic sensor at the base of robotic arm. The YOLOv8 algorithm is used for object detection using the depth sense camera having angle range of 0.3 m to 3 m with the precision of up to 96 %. The time needed for recognition of fruits and pitching was about 15 s, with a success rate of up to 90 %. This research produces a low-cost and efficient solution for stallholders by developing a fully automated robotic arm for fruit picking. It optimizes agricultural productivity through improved mechanical design, sensor accuracy, and object detection which reduces labor costs by increasing efficiency of semi-automated farming systems. Further research is required to optimize the overall weight of the system and automation of the movement of robotic arm system between the consecutive rows to build a fully autonomous fruit picking operation in hydroponics.