Indian Tractor Market Reaches $7.7 Billion in 2022, Expected to Cross $11.9 Billion by 2028

The latest IMARC Group analysis estimated that the tractor market will reach US$ 11.9 billion by 2028,

The Indian tractor market is growing rapidly, as highlighted in the latest report by IMARC Group. The latest IMARC Group analysis estimated that the market will reach US$ 11.9 billion by 2028, with a spectacular Compound Annual Growth Rate (CAGR) of 7.45% from 2023 to 2028.

Tractors in India are used for different types of activities beyond agriculture, including infrastructure development and logistics, contributing to their widespread adoption.

Moreover, the demand for tractors in non-agricultural applications, such as construction and transportation, has expanded the market's potential. Tractor performs a variety of farming activities such as ploughing, tilling, planting, and harvesting crops, as well as handling big loads and moving various agricultural implements.

The rising mechanization of agriculture in India is one of the key factors behind this growth. By moving from labour-intensive traditional farming methods to mechanized procedures, the country is making significant efforts to enhance agricultural productivity and efficiency.

Tractors are crucial in this transformation because they allow farmers to do farm chores more quickly and effectively, resulting in better crop yields. Additionally, government initiatives and subsidies have also contributed significantly to the expansion of the India Tractor market. Subsidies, financial incentives, and easy access to tractor loans have made these machines more affordable and accessible to farmers.

Furthermore, the industry is seeing an increase in demand for advanced and environmentally friendly tractors. Farmers are looking for tractors that are fuel-efficient, ecologically friendly, and equipped with advanced technologies such as GPS navigation and precision farming capabilities.

Furthermore, the development of small-scale farming is shaping the India Tractor market, creating a demand for compact tractors. Small and marginal farmers want mini tractors that are agile, versatile, and customized to their individual requirements.

Also Read: VST Tractors Sold 289 Tractor Units in October 2023, Records a 16.52% Decline

Another element of the market that is expanding is the aftermarket for tractor parts and services. With the increased use of tractors comes an increase in the demand for maintenance and repair services, as well as replacement parts. This opens up new opportunities for manufacturers involved in the tractor aftermarket, such as service centres and spare component suppliers.

The India Tractor market is further subdivided depending on power output and drive type to provide a complete picture of the industry. Power output is classified as below 40 HP, 40 HP - 100 HP, and beyond 100 HP, and the drive type is classified as 2-wheel drive or 4-wheel drive.

IMARC Group, a global market research firm, specializes in providing management strategy and market research services to clients across industries and geographies.

The expansion of the Indian tractor market demonstrates the role tractors play in modernizing the country's agriculture sector, ensuring higher productivity and sustainability in farming techniques. The future of India's tractor market appears good, with major development opportunities on the horizon, as the sector continues to evolve and adapt to current demands.