Agricultural Machinery Market in India

In India, the agricultural machinery market includes various tools and irrigation systems, all designed to improve farming efficiency and productivity by mechanizing processes.

In 2023, the agricultural machinery market in India was valued at INR 1.13 Trn and is expected to reach INR 1.66 Trn by FY 2029, expanding at a compound annual growth rate (CAGR) of ~6.69% during the 2024 - 2029 period. The robust demand for increased agricultural production in India is driven by the nation’s expanding population and fragmented land holdings. This has led to significant growth in the market for farm machinery, especially tractors and harvesting equipment, to boost productivity.

Government initiatives, such as the Pradhan Mantri Kisan Samman Nidhi and subsidies for agricultural machinery purchases, are also encouraging farmers to adopt advanced technologies, further fueling the growth of India’s agricultural machinery market.

Market Drivers:

With ongoing urbanization, there is a decrease in the availability of rural labor, resulting in increased wages for agricultural workers. This encourages farmers to invest in machinery to improve cost efficiency. The migration of rural workers to cities for improved job prospects leads to a lack of agricultural labor, prompting the use of machinery to sustain farm productivity.

Market Challenges:

The steep prices of advanced machinery make it difficult for small and marginal farmers to invest, limiting their access to modern technologies. Farmers may initially be hesitant to embrace new technologies due to the high costs involved because they remain apprehensive about receiving minimal returns on their investments. Also, many farmers do not have sufficient information on modern farming equipment, which hinders their ability to utilize new solutions that could improve efficiency