CNH India to Resume US Tractor Exports After Trade Deal, Plans ₹1,800 Crore Investment

Key Highlights

• US import duty reduced to 18% from nearly 50%.

• Tractor exports to the US restarted after a 2025 pause.

• The US contributes around 30% of total exports.

• ₹1,800 crore investment planned over 3 years.

• ₹1,000 crore to set up a new tractor plant.

CNH India has announced that it will fully restart tractor exports to the United States after the new India-US trade agreement reduced import duty to 18 percent. Earlier, import duties had increased to nearly 50 percent, making exports unviable for the company. Due to the high tariffs, most tractor shipments to the US were stopped in late 2025, with only a few compact models sent for testing and trial purposes.

Now, with improved trade conditions, the company is once again focusing on the US market, which is a key export destination.

Production and Exports Resume for US Market

Narinder Mittal, President and Managing Director of CNH India, confirmed that production and exports for the US have resumed. He stated that export volumes are expected to be higher than last year. The company has also introduced new compact tractor models to strengthen its portfolio and support export growth.

The US market contributes nearly 30 percent of CNH India’s total exports, making it one of the most important regions for the company.

CNH India operates well-known global brands such as New Holland Agriculture and Case IH, which are widely recognised in international markets.

India as a Global Supply Hub

Earlier, CNH India exported utility light tractors under 75 HP and medium tractors up to 120 HP to the US. Along with tractors, the company also supplied parts and components.

The restart of exports aligns with CNH’s “India for Global” strategy. Under this plan, India serves as a manufacturing base to supply tractors and components not only to the US but also to Europe and Latin America.

The India-US trade agreement announced in February 2026 is also expected to bring further benefits. Possible reductions in steel and aluminium duties could lower production costs for parts manufactured in India. This will improve cost efficiency and strengthen India’s role in the global supply chain.

₹1,800 Crore Investment Over the Next Three Years

To support future growth, CNH India has planned an investment of around ₹1,800 crore over the next two to three years.

• ₹1,500 crore will be invested in the agriculture business, covering tractors, harvesters, and crop equipment.

• ₹300 crore will go into the construction equipment segment.

Out of the total planned investment, nearly ₹1,000 crore will be used to set up a new standalone tractor manufacturing plant. The company said this new facility will help meet rising domestic demand and boost export capacity in the coming years.

With the restart of US exports and a major investment plan in place, CNH India is aiming to strengthen its position both in India and in global markets.

Also Read: Escorts Kubota Reviews US Tractor Exports After India-US Trade Deal

CMV360 Says

CNH India’s decision to resume full tractor exports to the US marks a strong comeback after trade challenges in 2025. With lower import duties and a clear “India for Global” strategy, the company is set to boost export volumes and expand manufacturing capacity. The planned ₹1,800 crore investment and new tractor plant will strengthen domestic production, improve cost efficiency, and support long-term growth in global agricultural markets.