Market Size of India Agricultural Machinery Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.73 Billion |
| Market Size (2029) | USD 25.15 Billion |
| CAGR (2024 - 2029) | 8.50 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Agricultural Machinery Market Analysis
The India Agricultural Machinery Market size is estimated at USD 16.73 billion in 2024, and is expected to reach USD 25.15 billion by 2029, growing at a CAGR of 8.5% during the forecast period (2024-2029).
- The potential for growth in the agriculture machinery sector is enormous in India, given its growing population, high economic dependence on the agriculture sector, changing demographics, and food security concerns. In Asia-Pacific, India remained one of the primary nations, fuelling the growth of its agricultural equipment market due to its high dependence on agriculture and an increasing inclination toward technology adoption.
- Along with this, some major drivers of the Indian agricultural machinery market include favorable government policies, rising farm incomes, and the importance of mechanization for productivity in India. For instance, The Government of India launched a unique program called "Sub Mission on Agricultural Mechanization (SMAM)" in 2014-15 to increase farm mechanization across the nation. A total of INR 4556.93 crores (USD 554.9 million) in funds have been made available under the scheme to the States and other implementing institutions between 2014-15 and 2020-21. More than 27.5 thousand custom hiring institutions have been founded, and more than 13 lakh agricultural machines have been provided. The budget for SMAM increased from the prior year to INR 1050 crore (USD 127.7 million) for 2021-22.
- Furthermore, the country's unavailability and high labor wages are increasing the demand for agricultural machinery products. Also, agriculture mechanization is essential because it helps increase crops' productivity by increasing the effectiveness and efficiency of the inputs used in crop production. It lessens the laboriousness involved in numerous farm tasks, thereby attracting farmers with modern techniques and advanced farm machinery for improved yield. These factors are supporting the growth of the agricultural machinery market in the country.
