India Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Indian agricultural machinery market has been segmented by type into tractors, equipment, sprayers, harvesting machinery, and haying and forage machinery

Market Snapshot

India Agricultural Tractors Market Growth Rate
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 4.9 %

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Market Overview

The agriculture and allied sectors continued to be one of the major driving force behind the sustainable economic development of the country. Despite agriculture contributed to 17.4% of the country's economy during 2016-17, still it is accelerating the demand for mechanization in the country. Though the level of farm mechanization in India stands about 40-45% in the year 2017-18, within the states such as Uttar Pradesh, Haryana, and Punjab among others at a relatively higher penetration rates, this level of mechanization is considered to be still low as compared to the countries such as the United States(95%). Brazil (75%), and China (57%). While the mechanization level still lags behind the major economies, still the country has experienced a growth rate in the agricultural machinery sales at a rate of 3.64% over the past few years. The agricultural machinery sales in the country is likely to experience a growing trend in the years to come particularly attributing to the factors such as increasing availability of farm power, unprecedented sales of tractors and power tillers, and positive outlook of institutional credit policies coupled with rising government intervention to boost the rate of mechanization in the country to meet the growing food demand.

Scope of the report

For the purpose of the study, the scope of agricultural machinery has been limited to commercial agricultural practices, whereas machinery used in any of the industrial practices has been excluded from the scope of the study. Market size estimation for agricultural machinery market is usually done in real terms at the manufacturer level.

Less than 50 HP
50 to 75 HP
76 to 100 HP
101 to 150 HP
Greater than 150 HP
Rotovators & Cultivators
Seed & Fertilizer Drills
Other Equipment
Irrigation Machinery
Sprinkler Irrigation
Drip Irrigation
Harvesting Machinery
Combine Harvesters
Forage Harvesters
Other Harvesting Machinery
Haying & Forage Machinery
Mowers & Conditioners
Other Haying & Forage Machinery

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Key Market Trends

Accelerated Sales of Tractors and Power Tillers to Drive the Indian Agricultural Machinery Market

The average availability of farm power for the cultivated areas of the country has significantly increased from 0.29 kw per hectare in early 2000's to 2.02 kw per hectare in 2016-17. Moreover, the share of power from the tractor segment in terms of overall farm power is increasing substantially over the years, therefore there is a dire need to increase the availability of farm power from 2.02 kw per hectare in 2016-17 to 4.0 kw per hectare by 2030 to pace up with the growing demand for food grains in the country. 

For instance, as per the Department of Agriculture, Cooperation and Farmer's Welfare, the sales volume of tractors has increased from 393,836 units in 2009-10 to 580,000 units in 2016-17. Similarly, the voluminous sales of power tillers have increased from 38,794 units to 45,200 units over the same period. Thus, the significant growth in the sales of tractors and power tillers coupled with improving status of the financial credit institutions in the country is likely to boost the sales of agricultural machinery over the forecast period. 


Sales of Tractors and Power Tillers in thousand units in India for 2009-2017

Tractors to Drive the Agricultural Machinery Market in India

India is considered to be one of the largest markets for tractors in the world. The country produces a huge volume of tractors and is also indulged in the export of tractors to the global demographics. On an average, the country exports 79,000 units of tractors to the Africa and other ASEAN economies. During 2013-14, the country exported 62,880 units of tractors, which increased to 77,490 units for 2016-17. Similarly, the tractor imports of the country changed from 4,930 units in 2013-14 to 3,920 units in 2016-17. However, the tractor exports in the country has seen in a slightly negative trend during 2017-18, experienced a significant decline of 3.52% from 2016-17 to 2017-18. 

Moreover, the total refinance quantum has increased by 18% CAGR over the period 2006-18, where the refinance of farm mechanization has experienced 12% CAGR over the same period. Thus, the increasing farm mechanization coupled with the rising financial assistance by the Indian government under various schemes such as Remunerative Approach for Agriculture and Allied sector Rejuvenation(RKVY), National Food Security Mission(NFSM), National Mission on Oilseeds and Oil Palm(NHM & NMOOP) is likely to accelerate the tractor sales in the years to come. 

Sales of Tractors in thousand Units in India for 2012-16

Competitive Landscape

The Indian agricultural machinery and equipment industry face high competition from renowned players like Mahindra & Mahindra Ltd., TAFE, Escorts Group, Sonalika, John Deere India operating in market place. The market is expected to become more consolidated in the years to come, as these  major players in the market are expanding their business by adopting various strategies such as mergers & acquisitions, expansions, partnerships and product launches. 

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry


    1. 5.1 Type

      1. 5.1.1 Tractors

        1. Less than 50 HP

        2. 50 to 75 HP

        3. 76 to 100 HP

        4. 101 to 150 HP

        5. Greater than 150 HP

      2. 5.1.2 Equipment

        1. Plows

        2. Harrows

        3. Rotovators & Cultivators

        4. Seed & Fertilizer Drills

        5. Other Equipment

      3. 5.1.3 Irrigation Machinery

        1. Sprinkler Irrigation

        2. Drip Irrigation

        3. Others

      4. 5.1.4 Harvesting Machinery

        1. Combine Harvesters

        2. Forage Harvesters

        3. Other Harvesting Machinery

      5. 5.1.5 Haying & Forage Machinery

        1. Mowers & Conditioners

        2. Balers

        3. Other Haying & Forage Machinery


    1. 6.1 Most Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 John Deere India Private Limited

      2. 6.3.2 TAFE Motors and Tractors Limited

      3. 6.3.3 International Tractors Ltd. (Sonalika)

      4. 6.3.4 Escorts Limited

      5. 6.3.5 Mahindra & Mahindra Limited

      6. 6.3.6 CNH Industrial (India) Private Limited

      7. 6.3.7 Force Motors Ltd.

      8. 6.3.8 VST Tillers Tractors Limited

      9. 6.3.9 Shivagrico Implements Limited

      10. 6.3.10 Greaves Cotton Limited


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Frequently Asked Questions

The India Agricultural Machinery Market market is studied from 2016 - 2026.

The India Agricultural Machinery Market is growing at a CAGR of 4.9% over the next 5 years.

John Deere India Private Limited, TAFE Motors and Tractors Limited, International Tractors Ltd. (Sonalika), Escorts Limited, Mahindra & Mahindra Limited, CNH Industrial (India) Private Limited are the major companies operating in India Agricultural Machinery Market.

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