"Agriculture is an important sector of the Indian economy, with over 70% of the country's population depending on it as their major source of income. India holds the second position in the world in agricultural production. Currently, India is the largest producer of spices, pulses, milk, tea, cashew and jute, and the second largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton, and oilseeds. In terms of agricultural contribution, some of the most developed states in India are Punjab, Uttar Pradesh, Madhya Pradesh, Haryana, Bihar, Andhra Pradesh, Maharashtra, West Bengal, and Gujarat.
The growth of India's agriculture sector has also boosted the agricultural machinery market in India. According to Netscribes research, the Indian agricultural machinery market is projected to grow at a CAGR of around 6.6% to reach INR 769.2 billion by FY 2022.
India is the largest tractor market in the world and the 41-50 HP is the largest selling segment. It accounted for 44% of the total tractor sales in FY 2015. Tractors and power tillers have played a vital role in the overall development of agriculture in the country.
Key growth factors
Government initiatives such as Kisan Credit Card, National Mission on Agricultural Mechanization (NMAM), and Tractor Subsidy Scheme have contributed to the growth of the machinery market. Easy availability and access to low cost credit is another reason for growth in the market. This helps farmers invest in assets, obtain greater yield and income.
Strong governmental regulations on the availability of finance for agricultural mechanization tools, rural development, and high irrigation potential will drive the agricultural farm machinery industry in India.
Threats and key players
High cost of agricultural machines is one of the major challenges hampering the growth of agricultural machinery market in India. Agricultural machines are capital-intensive. As a result, it is a major investment for small and marginal farmers.
The overall land holding in India is fragmented, which is another threat to the market. Fragmentation of land leads to lower productivity levels, as farmers cannot make effective use of machinery on small farms.
Mahindra and Mahindra, Escorts, VST, and Force Motors are the major players in the agricultural machinery market in India. To stay competitive, the leading players are increasingly striving to provide innovative, cost-effective, and high-quality services to consumers.
What's covered in the report?
Overview of the global and Indian agricultural machinery market, and historical and forecasted market size data
Trade analysis of the agricultural machinery market
Qualitative analysis of the major drivers and challenges affecting the market
Key recent developments in the Indian agricultural machinery market
Analysis of the competitive landscape and profiles of major public and private players operating in the market
Get a broad understanding of the global and Indian agricultural machinery market, the dynamics of the market and the current state of the industry
Be informed about the government initiatives deployed in the market
Understand the factors driving the growth of the market
Identify key growth opportunities in the industry and make informed decisions to increase profitability
Understand major competitors' business and market dynamics, and respond accordingly