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India Agricultural Tractor Market Size (2024 - 2029)

The market size of the agricultural tractor industry in India is projected to experience significant growth over the forecast period, driven by increased demand for farm mechanization and government support initiatives. Factors such as higher rural spending, timely monsoons, and exemptions from lockdown restrictions have contributed to this growth. The market is characterized by a preference for two-wheel-drive tractors and is dominated by local manufacturers, although international companies have also established a presence. The decreasing availability of farm labor and the introduction of innovative business models further enhance the market's attractiveness, indicating a robust expansion in tractor sales in the coming years.

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Market Size of India Agricultural Tractor Industry

India Agricultural Tractor Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 7.42 Billion
Market Size (2029) USD 10.28 Billion
CAGR (2024 - 2029) 6.70 %
Market Concentration High

Major Players

India Agricultural Tractor Market Major Players

*Disclaimer: Major Players sorted in no particular order

India Agricultural Tractor 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).

Agriculture remains a significant contributor to the Indian economy, with 51.09% of the country's land dedicated to agricultural activities. The Ministry of Agriculture and Farmers Welfare reports an increase in total cropped area from 201.18 million hectares in 2020-2021 to 219.16 million hectares in 2021-2022. This extensive agricultural area promotes using tractors for various complex farming operations. The demand for tractors in India is primarily driven by large-scale farming operations, declining labor availability, and increasing mechanization in the agriculture sector. World Bank data indicates a decrease in agricultural employment, from 44.7% of the population in 2020 to 42.9% in 2022.

The Indian tractor market is further propelled by rising farm wages and government support for farm mechanization. The average daily wage rate for agricultural laborers across India increased from Rs 292.05 (USD 3.9) in 2019-20 to Rs 328.18 (USD 4.2) in 2021-22 as reported by the Ministry of Agriculture and Farmer Welfare. The central government offers a 50% subsidy on tractor purchases under the Pradhan Mantri Kisan Tractor Yojana scheme, with the subsidy amount directly transferred to the beneficiary's account. Beyond agricultural, social, and economic factors, macroeconomic and intrinsic elements such as population growth and increasing demand necessitate the adoption of mechanized solutions like tractors for sustainable long-term growth.

India Agricultural Tractor Industry Segmentation

A tractor is an engineered vehicle designed to provide high tractive effort at low speeds, primarily used to pull agricultural machinery or trailers. This report focuses exclusively on tractors used in agricultural operations. It does not include other agricultural machinery or tractor attachments. Tractors designed for industrial and construction purposes are excluded from the study's scope.

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 other regions).

The report provides market estimation and forecast in value terms (USD) for each segment.

Engine Power
Less than 30 HP
31-50 HP
51-80 HP
Above 80 HP
Drive Type
Two-wheel Drive
Four-wheel Drive
Application
Row Crop Tractors
Orchard Tractors
Other Applications
Geography
Uttar Pradesh
Madhya Pradesh
Maharashtra
Rajasthan
Gujarat
Others
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India Agricultural Tractor Market Size Summary

The tractor industry in India is poised for significant growth, driven by increased demand for agricultural machinery due to favorable monsoon conditions, government initiatives, and the need for farm mechanization. The market is characterized by a strong presence of domestic original equipment manufacturers (OEMs) such as Mahindra & Mahindra, TAFE, and Escorts Limited, alongside international players like Deere & Company and CNH. The preference for two-wheel-drive tractors over four-wheel-drive models highlights the market's focus on cost-effective solutions for small and marginal farmers. Government subsidies and support for agricultural mechanization further bolster the market, making India a lucrative destination for tractor manufacturers. The trend towards custom hiring solutions and innovative business models is also contributing to the market's expansion.

In states like Uttar Pradesh, where agriculture is a significant economic driver, the adoption of tractors is increasing due to the fragmentation of land holdings and the inefficiency of manual labor. Tractors enhance productivity and efficiency in farming operations, making them an essential tool for small-scale farmers. The market is consolidated, with major players investing in new product development, expansions, and research and development to maintain their competitive edge. Recent developments include the introduction of new tractor models and investments in manufacturing facilities, underscoring the industry's commitment to meeting the evolving needs of Indian agriculture.

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India Agricultural Tractor Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Mechanization Trend in Agriculture Sector

      2. 1.1.2 Trend of Custom Hiring of Tractors

      3. 1.1.3 Growing Government Support to Enhance Farm Mechanization

    2. 1.2 Market Restraints

      1. 1.2.1 Lack of Awareness and Skilled Manpower

      2. 1.2.2 Poor Economic Condition of Farmers

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Buyers

      2. 1.3.2 Bargaining Power of Suppliers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Engine Power

      1. 2.1.1 Less than 30 HP

      2. 2.1.2 31-50 HP

      3. 2.1.3 51-80 HP

      4. 2.1.4 Above 80 HP

    2. 2.2 Drive Type

      1. 2.2.1 Two-wheel Drive

      2. 2.2.2 Four-wheel Drive

    3. 2.3 Application

      1. 2.3.1 Row Crop Tractors

      2. 2.3.2 Orchard Tractors

      3. 2.3.3 Other Applications

    4. 2.4 Geography

      1. 2.4.1 Uttar Pradesh

      2. 2.4.2 Madhya Pradesh

      3. 2.4.3 Maharashtra

      4. 2.4.4 Rajasthan

      5. 2.4.5 Gujarat

      6. 2.4.6 Others

India Agricultural Tractor Market Size FAQs

The India Agricultural Tractor Market size is expected to reach USD 7.42 billion in 2024 and grow at a CAGR of 6.70% to reach USD 10.28 billion by 2029.

In 2024, the India Agricultural Tractor Market size is expected to reach USD 7.42 billion.

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