India Agricultural Tractor Market Size (2024 - 2029)

India Agricultural Tractor Machinery Market Analysis

The India Agricultural Tractor Market size is estimated at USD 7.42 billion in 2024, and is expected to reach USD 10.28 billion by 2029, growing at a CAGR of 6.70% during the forecast period (2024-2029).

• The demand for agricultural machinery, including tractors, increased due to higher Kharif sowing, good cash flows to farmers, a timely and normal monsoon in the country across June and July, continued higher rural spending by the government, and exemption from lockdown restrictions.
• Government initiatives toward rural development, farm mechanization, and various factors, such as high rural wages and scarcity of farm labor, are likely to increase the tractor volume over the long term.
• Two-wheel-drive tractors are more popular than four-wheel-drive tractors in the Indian market. The agriculture tractor market is dominated by aboriginal Indian OEMs, namely Mahindra & Mahindra Limited, TAFE, International Tractors Ltd (Sonalika), and Escorts Limited. Key international tractor manufacturers like Deere & Company and CNH penetrated the market and established a decent market presence.
• India remains a highly lucrative tractor market because of the decreasing availability of farm labor and the rise of innovative business models, such as custom hiring solutions for tractors. In India, under the mechanization component of the macro-management scheme of agriculture by the Indian government, there is a subsidy for promoting agricultural mechanization, including 25% of the cost limited to INR 30,000 for buying tractors of up to 35 PTO HP. Thus, with the rising government support for enhancing farm mechanizations and expansion in crop production, the sale of agricultural tractors is anticipated to rise in the upcoming years.

India Agricultural Tractor Machinery Industry Segmentation

A tractor is an industrial vehicle with one or two small wheels in front and two large wheels at the back for agricultural and other functions. It is used to move the attached implement that plows the field or performs different activities. For this report, tractors used in farm operations have been considered. The report does not cover other agricultural machinery and attachments to tractors. Tractors used for industrial and construction purposes are also excluded from the study.

The Indian agricultural tractor market is segmented by engine power (less than 30 HP, 31-50 HP, 51-80 HP, and above 80 HP), drive type (two-wheel drive and four-wheel drive), application (row crop tractors, orchard tractors, and other applications), and Geography (Uttar Pradesh, Madhya Pradesh, Maharashtra, Rajasthan, Gujarat, and Others).

The report offers market estimation and forecast in value (USD) for the abovementioned segments.