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India Agricultural Machinery Market Size (2024 - 2029)

The agricultural machinery market size in India is poised for significant growth, driven by factors such as the country's reliance on agriculture, technological advancements, and supportive government initiatives. The increasing demand for mechanization, due to high labor costs and the need for enhanced productivity, is further propelling the market. Government programs aimed at boosting farm mechanization are also contributing to the expansion of this sector. These elements collectively underscore the substantial potential for growth in India's agricultural machinery market.

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Market Size of India Agricultural Machinery Industry

India Agricultural Machinery Market Summary
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

India Agricultural Machinery Market Major Players

*Disclaimer: Major Players sorted in no particular order

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, at a CAGR of 8.5% during the forecast period (2024-2029).

  • India's agricultural sector is witnessing a surge in both production and demand. This upswing underscores the urgent need for farm mechanization, aimed at achieving output targets, optimizing input efficiency, and ensuring timely farm operations. In 2022, India set a record by producing 314.51 million tons of food grains. Yet, this impressive growth has come at a cost: rising input expenses and the depletion of natural resources, largely due to inefficient practices. Farm mechanization emerges as a solution, boosting productivity and comfort, and rendering agriculture more appealing to the younger generation. The India Brand Equity Foundation (IBEF) noted that India's mechanization rate for 2022-2023 stood at approximately 47%.
  • Farm mechanization plays a pivotal role in several government initiatives. These include the Rashtriya Krishi Vikas Yojana (RKVY), the Mission for Integrated Development of Horticulture, the National Mission on Oilseeds and Oil Palm, and the National Food Security Mission (NFSM). Due to these initiatives, the distribution of agricultural machinery surged from 32,678 units in 2021 to a remarkable 294,800 units in 2023, as reported by the Ministry of Agriculture and Farmers Welfare. Tractors have long been the backbone of India's agricultural machinery landscape, and government subsidies and programs have further accelerated their widespread adoption. 

India Agricultural Machinery Industry Segmentation

Agricultural machinery is the mechanical structures and devices used in farming or other agricultural purposes. The India Agricultural Machinery Market is segmented by type (tractors (less than 50 HP, 50 to 75 HP, 76 to 100 HP, 101 to 150 HP, greater than 150 HP), equipment (plows, harrows, rotovators and cultivators, seed and fertilizer drills, and other equipment), irrigation machinery (sprinkler machinery, drip irrigation, and other irrigation machinery), harvesting machinery (combine harvesters, forage harvesters, and other harvesting machinery), and haying and forage machinery (mowers and conditioners, balers, and other haying and forage machinery). The report offers market size and forecast in terms of value (USD) for all the abovementioned segments.

Type
Tractors
Less than 50 HP
50 to 75 HP
76 to 100 HP
101 to 150 HP
Greater than 150 HP
Equipment
Plows
Harrows
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
Balers
Other Haying & Forage Machinery
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India Agricultural Machinery Market Size Summary

The agricultural machinery market in India is poised for significant expansion, driven by the country's substantial reliance on agriculture and the increasing adoption of technology. As one of the leading nations in the Asia-Pacific region, India is experiencing a surge in demand for agricultural equipment due to its large population and the critical role of agriculture in its economy. The government's initiatives, such as the Sub Mission on Agricultural Mechanization, have been pivotal in promoting farm mechanization, providing financial support, and establishing custom hiring institutions. These efforts are further bolstered by rising farm incomes and the necessity of mechanization to enhance productivity and efficiency in agricultural practices. The shift towards mechanization is also a response to labor shortages caused by urbanization and changing workforce preferences, making modern machinery essential for maintaining crop yields and reducing labor-intensive tasks.

Tractors dominate the agricultural machinery landscape in India, playing a crucial role in enhancing agricultural productivity through automation. The market for tractors is thriving, supported by the country's robust production capabilities and export potential, with significant exports to countries like the United States and Nepal. The increasing need for cost-effective solutions, such as tractor rentals, alongside government financial assistance schemes, is expected to drive tractor sales further. The Indian agricultural machinery market is characterized by a few major players, including Mahindra & Mahindra Ltd, CNH Industrial NV, and Escorts Group, who are actively engaging in new product launches and strategic partnerships to strengthen their market position. This consolidation and strategic activity among key players indicate a promising growth trajectory for the agricultural machinery sector in India over the forecast period.

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India Agricultural Machinery Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Government Initiatives Promoting Adoption of Agriculture Machinery

      2. 1.2.2 Increase in Agriculture Production

      3. 1.2.3 Growing Agriculture Labour Shortage

    3. 1.3 Market Restraints

      1. 1.3.1 High Costs of Machinery

      2. 1.3.2 Inadequate Training

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Buyers/Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Tractors

        1. 2.1.1.1 Less than 50 HP

        2. 2.1.1.2 50 to 75 HP

        3. 2.1.1.3 76 to 100 HP

        4. 2.1.1.4 101 to 150 HP

        5. 2.1.1.5 Greater than 150 HP

      2. 2.1.2 Equipment

        1. 2.1.2.1 Plows

        2. 2.1.2.2 Harrows

        3. 2.1.2.3 Rotovators & Cultivators

        4. 2.1.2.4 Seed and Fertilizer Drills

        5. 2.1.2.5 Other Equipment

      3. 2.1.3 Irrigation Machinery

        1. 2.1.3.1 Sprinkler Irrigation

        2. 2.1.3.2 Drip Irrigation

        3. 2.1.3.3 Other Irrigation Machinery

      4. 2.1.4 Harvesting Machinery

        1. 2.1.4.1 Combine Harvesters

        2. 2.1.4.2 Forage Harvesters

        3. 2.1.4.3 Other Harvesting Machinery

      5. 2.1.5 Haying and Forage Machinery

        1. 2.1.5.1 Mowers and Conditioners

        2. 2.1.5.2 Balers

        3. 2.1.5.3 Other Haying & Forage Machinery

India Agricultural Machinery Market Size FAQs

The India Agricultural Machinery Market size is expected to reach USD 16.73 billion in 2024 and grow at a CAGR of 8.5% to reach USD 25.15 billion by 2029.

In 2024, the India Agricultural Machinery Market size is expected to reach USD 16.73 billion.

India Agricultural Machinery Market Report Snapshots

Agricultural Machinery In India Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)