MUMBAI, 5 April 2020: The Indian agricultural machinery market is expected to reach INR 901.41 Bn by 2024, expanding at a CAGR of 10.70% during the 2019-2024 period, a research report by Planet Market Reports said. As on 2018, Indian agricultural machinery market was recorded at INR 498.04 BN (USD 6.5 bn).
Market Insights
India is an agrarian economy, with over 50% of the population dependent on agriculture for their livelihood. As of 2019, agriculture and its allied sector accounted for ~16% of India’s gross domestic product GDP.
The performance of this sector drives the prices and market demand for essential commodities. The accessibility and quality of agricultural machinery positively impact the productivity and output of the farming sector.
Furthermore, the Indian machinery market is expected to introduce Self-Driving Autonomous Tractors, and increase the application of innovative technology like Internet of Things IoT and Big Data to make agriculture a profitable profession for farmers, the report added.
The industry experienced a sluggish growth initially, owing to the economic slowdown in the country. However, the rise in the purchasing power, availability of better financing options, and growth of contract farming are expected to improve market revenue during the forecast period.
The adoption of the sharing economy model and tech-driven start-ups are expected to revolutionize the agriculture machinery market in India.
The United States, Nepal, and Sri Lanka account for the major share of exports of agricultural equipment from India. Whereas, India imports more than 70% of agricultural equipment from China.
Market Segment Insights
Based on products, the market can be segmented into tractors, rotavators, power tillers, threshers, and others. The tractor segment dominated the market with a revenue share of ~81% in 2019.
Moreover, it is expected to remain the largest segment both in terms of value and growth rate during the forecast period 2019-2024.
Industry players contributing to the market revenue include TAFE, Escorts Limited, and Sonalika Tractors among others. Mahindra & Mahindra leads the market with a market share of ~40.20%, in terms of revenue, in India, and is the largest tractor manufacturer in the world.
Government Initiatives
To promote the application of farm mechanization, the government has set up the Farm Machinery Training and Testing Institutes FMTTIs and formulated bodies to quality check agricultural machines and implements.
Indian Council for Agriculture and Research ICAR and State Farm Corporation of India have been set up to improve the adoption of new technologies in crop production. Other initiatives include setting up financial institutions and providing incentives and subsidies.