Indian Agricultural Machinery Market

Indian Agricultural Machinery Market

  • July 2017 •
  • 96 pages •
  • Report ID: 5023913
Agriculture in India is full of diversity. On one hand, there are large plantations and farms, and on the other, there is an abundance of smallholder farmers who use little to no mechanization (except by way of diesel operated agricultural pumps) and are largely dependent on climatic conditions for irrigation. The Indian market is characterized by innovation in catering to the needs of the latter, while being affordable.

Government support to smallholder farmers (agriculture employs roughly 70% of the country), by way of subsidized machinery, equipment and supplements is commonplace. There is a lack of consolidation, which is hampering both, productivity per hectare, and the agricultural machinery market. Currently worth $X billion, the Indian agri-equipment and machinery market is expected to grow at CAGR 11.5% over 2015-2022.

A high growth in population (India is now the most populous country in the world), demand for increased productivity to ensure food security, and a thriving export market are some of the drivers of the agricultural Machinery market in India. Lack of awareness & skilled manpower, constraints in terms of average purchasing power, constraints in terms of a tailor-made credit availability with reasonable pay-off options, are only some of the restraints in scaling of adoption of farm mechanization.

India with their small farm size is at primary stage of adoption. Starting with common tools of farming like plough and sickle, the agricultural machinery industry has products to offer in every stage of a crop cycle. Here market segmentation is done on the basis of product and phase type: tractors, plowing and cultivating machinery, planting and fertilizing, harvesting machinery etc. Tractors are the most commonly used implements across farms, across geographies. However, these are more common in affluent agricultural states like Punjab, Haryana, and others, and seldom spotted in states like Bihar, Uttar Pradesh, etc. The equipment used in these countries tend to be in the form of smaller horsepower, low-technology tractors with relatively low unit prices.

It is important to note that small and medium ticket items, particularly the small tractor segment accounts for a large portion of sales in this segment in the country. The Indian agricultural machinery and equipment industry face high competition from renowned players like Mahindra & Mahindra Ltd., TAFE, Escorts Groups, Sonalika, John Deere India operating in market place. The companies here strive to strengthen their base on the basis of product features, pricing, quality, scale of operations and technology innovation
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Country=India Industry=AgriculturalMachinery ParentIndustry=Agribusiness Date=201707 Topic=Demand Publisher=MordorIntelligenceLLP Price=3000