Export markets: US, Nepal and Sri Lanka
The Indian agricultural machinery market is expected to reach Rs.901.41 billion by 2024, expanding at a CAGR of ~10.7% during the 2019-2024 period. It was valued at Rs.498.04 billion in 2018.
The industry experienced a sluggish growth initially, owing to the economic slowdown in the country, said a ResearchAndMarkets report on “Agricultural Machinery Market in India 2019”, released 21 Feb 2020.
However, 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, according to the report.
The adoption of the sharing economy model and tech-driven start-ups is 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, noted the report.
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, the report pointed out.
Furthermore, the Indian machinery market is expected to introduce Self-Driving Autonomous Tractors and increase application of innovative technology like Internet of Things (IoT) and Big Data to make agriculture a profitable profession for farmers.
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 impacts productivity and output of the farming sector.
Players in the industry include Mahindra & Mahindra Limited, Escorts Limited, Force Motor Limited, Greavers Cotton Limited, Shivagrico Implements Limited, VST Tillers Tractors Limited, John Deere India Private Limited, Tractor and Farm Equipment Limited, International Tractor Limited and CNH Industries India Private Limited. fiinews.com
