India’s farm equipment market likely to grow to USD 18 bn from USD 13 bn by 2025
The adoption rates of farm equipment have increased as indicated by the sale of tractors and the rise in farm power availability (FPA) in the recent past.
According to The Federation of Indian Chambers of Commerce and Industry (FICCI) -PwC report “Farm mechanization: Ensuring a sustainable rise in farm productivity and income’’ which released at EIMA AGRIMACH in New Delhi, India’s farm equipment market likely to grow to US$ 18 billion by 2025 from USD 13 billion.
As per Farm mechanisation in India is in the initial stages, with the mechanisation level ranging from 40–45 percent, which is very low compared to that in developed economies, where mechanisation has reached beyond 90 percent.
Highlights of the report:
- India’s farm equipment market likely to grow to USD 18 billion by 2025 from USD 13 billion.
- Farm mechanization in India is in the initial stages, with the mechanization level ranging from 40–45%, which is very low compared to that in developed economies, where mechanization has reached beyond 90%.
- India’s farm equipment market is 7% of the global market, with more than 80% of the value contribution coming from tractors.
- The adoption rates of farm equipment have increased as indicated by the sale of tractors and the rise in farm power availability (FPA) in the recent past.
- Domestic sales of tractors have increased from 3 lakh units in FY09 to 7.8 lakh units in FY19, registering a phenomenal CAGR of 10%.
- India is also one of the largest manufacturers of equipment such as tractors, harvesters and tillers.
- With rise in pollution and huge nutritional losses through crop residue burning, mechanized solutions like the super straw management system (SMS) 5 and promoting Custom Hiring Centres (CHCs) around stubble management are other important drivers fuelling sectoral growth.
- Technology integration by farm mechanization start-ups, especially based on the farming as a service (FAAS) model, is gaining significant momentum these days.
