Indian Tractors Now Exported to 162 Countries with Emission Norm Alignment: ICCT

Key Highlights:

• Indian tractors are exported to 162 countries.

• EU exports grew at an 11% CAGR; Belgium is a big buyer.

• Brazil's exports have surged at a 65% CAGR since 2017.

• US is still the top market with 21% share.

• TREM V norms to align with the EU by 2026.

Indian tractor manufacturers have expanded their global reach to 162 countries, thanks to aligning domestic emission standards with international norms. This insight comes from a new study by the International Council on Clean Transportation (ICCT), presented at the India Clean Transportation Summit.

16-Year Trade Growth Backed by Stricter Standards

The study analyzed 16 years of trade data (2008-09 to 2024-25) and found that India's adoption of TREM IV emission standards has enabled manufacturers to penetrate key global markets. This includes the European Union, Latin America, and the United States, even as tariff barriers continue to rise.

European Market Sees Strong Growth

Exports to the European Union grew from $38 million in 2008-09 to $181 million in 2024-25, an 11% compound annual growth rate (CAGR). Belgium emerged as a key buyer, importing $28 million worth of 75-130 kW tractors in 2024-25 compared to almost none two years earlier. Exports in this category grew 200 times in a single year following the implementation of TREM IV.

Brazil Records Highest Export Growth

Brazil witnessed the sharpest growth, with tractor exports surging from $4.5 million in 2017-18 to $88 million in 2024-25, achieving an impressive 65% CAGR. This growth coincided with Brazil's introduction of its MAR-I emission rules, for which Indian tractors were already compliant.

US Remains the Largest Market Despite Declines

The United States remains India's largest single tractor export market, contributing 21% of total exports in 2024-25. While overall exports to the US fell 40% in 2023-24 and another 10% in 2024-25, shipments of small (under 18 kW) and large (75-130 kW) tractors increased due to compliance with US Tier 4f norms. However, the 37-75 kW segment lost market share because of differing standards.

Emerging Markets in Asia and Africa Grow Steadily

Bangladesh saw 11% annual growth in tractor imports over the past decade, while Thailand achieved 16% CAGR driven by mid-sized tractor demand. South Africa maintained a 13% CAGR, particularly in the 37-75 kW category, and Mexico emerged as a promising new destination for Indian tractors.

Domestic Reforms Boost Competitiveness

The report also highlights India's recent reduction in GST on tractors and farm equipment, which has improved rural affordability and increased global competitiveness alongside emission reforms.

TREM V to Set New Benchmark by 2026

India’s upcoming TREM V emission standards, scheduled for April 2026, are expected to harmonize Indian norms with EU standards while surpassing US requirements. This shift will move India from Euro IV to Euro VI equivalent standards for tractors.

“India's leap from Euro IV to Euro VI shows policymakers' strong commitment to cleaner transport. With TREM V enforcement starting in April 2026, Indian emission standards will be in harmony with those in the EU and more stringent than U.S. standards,” said Amit Bhatt, India Managing Director, ICCT.

“Cleaner, next-generation tractors can power India's rural growth while opening doors worldwide. Stricter standards are not a burden; they're a bridge to global trade,” added Aravind Harikumar, Author and Researcher, ICCT.

Also Read: ICRA Report: Indian Tractor Industry Sees Strong Growth in August 2025

CMV360 Says

The ICCT study highlights how aligning with global emission standards has become a powerful tool for Indian tractor manufacturers to overcome trade barriers and expand into developed and emerging markets. With TREM V on the horizon, India is well-positioned to strengthen its role as a global tractor manufacturing hub while pushing for cleaner, more efficient farm equipment.​