India Agricultural Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The India Agricultural Machinery Market has been Segmented by Type (Tractors, Equipment, Irrigation Machinery, Harvesting Machinery, and Haying and Forage Machinery). The report offers market size and forecast in terms of value (USD million) for all the abovementioned segments.

Market Snapshot

Indian Agricultural Machinery Market Size
Study Period: 2017-2027
Base Year: 2021
CAGR: 4.9 %
Indian Agricultural Machinery Market Key players

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Market Overview

The Indian agricultural machinery market is projected to record a CAGR of 4.9% during the forecast period 2022-2027.

The COVID-19 pandemic had a negative impact on supply chains. Due to restrictions in the movement of raw materials, the manufacturing sector suffered initially in terms of supply and cash flow. The sales of agricultural machinery also declined around the world due to the lockdown. Manufacturers still need to take measures to tide over uncertainties from the COVID-19 pandemic and work on innovations to grow their sales value.

Some major drivers of the Indian agricultural machinery market identified in this report include favorable government policies, rising farm incomes, and the importance of mechanization for productivity in India. Major restraints identified in this report are fragmented land holdings, agricultural commodity price volatility, and product knowledge constraints among unskilled manpower.

The potential for growth in the agriculture machinery sector is huge in India, given its growing population, high economic dependence on the agriculture sector, changing demographics, and food security concerns. In Asia-Pacific, India has remained one of the primary nations, which fuelled the growth of its agricultural equipment market due to the country's high level of dependence on agriculture and an increasing inclination toward technology adoption.

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 industrial practices has been excluded from the scope of the study. Market size estimation for the agricultural machinery market is usually done in real terms at the manufacturer level.

The Indian agricultural machinery market has been segmented by type (tractors, equipment, irrigation machinery, harvesting machinery, and haying and forage machinery). The report offers market size and forecast in terms of value (USD million) for all the abovementioned segments.​

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

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Key Market Trends

Increasing Focus on Farm Mechanization

In India, about half the population relies on agriculture as it is the principal source of income and a source of raw material for a large number of industries. The increase in production of grains, cereals, and oilseeds is driven by a combination of increased yield and agricultural mechanization. Thus, farm mechanization plays a key role in sustaining agricultural growth.

There has been a consistent shortage in labor-intensive agricultural operations in India due to the changing workforce preference from pure farm-oriented activities to allied sectors. This is anticipated to drive the market over the coming years. Another factor driving farm mechanization in the country is the drudgery of farm activities, as the timely performance of farm activities and the small window available for conducting these operations compound the challenges.

Thus, the need to increase production and cater to a consistent shortage in the labor force is expected to boost the sales of agricultural machinery over the forecast period.

 Indian Agricultural Machinery Market Trends

Tractor Segment to Drive the Indian Agricultural Machinery Market

India is one of the largest markets for tractors in the world. Tractors form the majority of machinery usage in India; the availability of tractors in the study period was 128.51 as of 2000 per 100 sq. km. of arable land. Tractors are seen as engines or vehicles for pulling wagons or plows. Other than plowing, tractors are also used for drawing, towing, harrowing, etc. The usage of tractors brought about an important change in agricultural mechanization in the country.

The country produces a huge volume of tractors and also exports tractors globally. On average, the country exports 79,000 units of tractors to African and ASEAN economies. Moreover, the total refinancing quantum recorded a CAGR of 18% over the period 2006-18, whereas the refinancing of farm mechanization registered a 12% CAGR over the same period.

Thus, the increasing farm mechanization, coupled with the rising financial assistance from the Indian government through various schemes, such as the 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 tractor sales over the coming years.

 Indian Agricultural Machinery Market Analysis

Competitive Landscape

The Indian agricultural machinery market is consolidated, with the major players occupying the maximum share of the market. Renowned players like Mahindra & Mahindra Ltd, CNH Industrial NV, Tractors and Farm Equipment Ltd, Escorts Group, Sonalika, and John Deere India are some major players in the Indian agricultural machinery market. New product launches, partnerships, and acquisitions are the major strategies being adopted by leading companies in the market.

Recent Developments

In March 2021, John Deere introduced new 400 and 600 Series Sprayers. The lineup of 400 Series Sprayers includes the 408R, 410R, and 412R, while the 600 Series includes the 612R and 616R. This is expected to meet the application needs of farmers who demand operator comfort, high-quality application, and the maximum machine uptime possible.

In October 2020, Escorts acquired 40% of the shares of Kubota Agricultural Machinery in India, reducing the company’s operations in the country.

In February 2020, New Holland launched three new WORKMASTER Utility Tractors, including 95, 105, and 120 horsepower models. The products have been designed to meet a wide range of customer needs and provide unmatched comfort, simplicity, and visibility with a low cost of ownership, thus, enhancing the company’s product portfolio.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's 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 and& Fertilizer Drills

        5. Other Equipment

      3. 5.1.3 Irrigation Machinery

        1. Sprinkler Irrigation

        2. Drip Irrigation

        3. Other Irrigation Machinery

      4. 5.1.4 Harvesting Machinery

        1. Combine Harvesters

        2. Forage Harvesters

        3. Other Harvesting Machinery

      5. 5.1.5 Haying and Forage Machinery

        1. Mowers and 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 2017 - 2027.

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

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

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