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

  • The potential for growth in the agriculture machinery sector is enormous in India, given its growing population, high economic dependence on the agriculture sector, changing demographics, and food security concerns. In Asia-Pacific, India remained one of the primary nations, fuelling the growth of its agricultural equipment market due to its high dependence on agriculture and an increasing inclination toward technology adoption.
  • Along with this, some major drivers of the Indian agricultural machinery market include favorable government policies, rising farm incomes, and the importance of mechanization for productivity in India. For instance, The Government of India launched a unique program called "Sub Mission on Agricultural Mechanization (SMAM)" in 2014-15 to increase farm mechanization across the nation. A total of INR 4556.93 crores (USD 554.9 million) in funds have been made available under the scheme to the States and other implementing institutions between 2014-15 and 2020-21. More than 27.5 thousand custom hiring institutions have been founded, and more than 13 lakh agricultural machines have been provided. The budget for SMAM increased from the prior year to INR 1050 crore (USD 127.7 million) for 2021-22.
  • Furthermore, the country's unavailability and high labor wages are increasing the demand for agricultural machinery products. Also, agriculture mechanization is essential because it helps increase crops' productivity by increasing the effectiveness and efficiency of the inputs used in crop production. It lessens the laboriousness involved in numerous farm tasks, thereby attracting farmers with modern techniques and advanced farm machinery for improved yield. These factors are supporting the growth of the agricultural machinery market in the country.

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 million) 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

    3. 1.3 Market Restraints

    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)