Report

The India agricultural machinery market size was valued at USD 17.53 Billion in 2024. The industry is expected to grow at a CAGR of 8.70% during the forecast period of 2025-2034. The expanding population, rise in government initiatives and the focus on sustainability have resulted in the market attaining a valuation of USD 40.37 Billion by 2034.

India Agricultural Machinery Market Report Summary

Description

Value

Base Year

USD Billion

2024

Historical Period

USD Billion

2018-2024

Forecast Period

USD Billion

2025-2034

Market Size 2024

USD Billion

17.53

Market Size 2034

USD Billion

40.37

CAGR 2018-2024

Percentage

XX%

CAGR 2025-2034

Percentage

8.70%

CAGR 2025-2034 - Market by Region

South India

9.9%

CAGR 2025-2034 - Market by Region

East India

9.3%

CAGR 2025-2034 - Market by Equipment Type

Tractors

10.1%

CAGR 2025-2034 - Market by Application

Sowing & Planting

10.6%

2024 Market Share by Region

South India

32.2%

India Agricultural Machinery Market Growth

Innovation and Precision Farming Drive Growth in India's Agricultural Machinery Industry

The surging emphasis on innovations to enhance efficiency, limit labour costs, and support sustainable farming practices are some major India agricultural machinery market trends. In August 2024, world's largest tractor manufacturer Mahindra Farm Equipment Sector introduced its new set of rotavators that can be used for every soil and crop type in a bid to revolutionize land preparation for Indian farmers. Rapid advancements in transmission technology, lifting capacity, and precision farming will prove favourable for the industry growth. In September 2024, the Indian government set up 22 precision farming development centres across the nation to test new technologies and modify them to meet the local needs.

Key Trends and Recent Developments

The growth of the India agricultural machinery market is driven by the surging advances in solar-driven machinery, presence of international players, demand for automation and growth of the agricultural sector.

February 2025

Italian American agriculture firm CNH commenced the production of its latest 2.8-litre TREM V-compliant engine at its facility located in Greater Noida. Initially designed for construction equipment, the engine will power agricultural machinery with the TREM V emission standards taking effect.

February 2025

John Deere India launched the John Deere 5130M, its latest portfolio of tractors in India. The new tractor is equipped with a 130 HP engine and is the highest HP tractor available combining power and efficiency for offering farmers enhanced productivity.

January 2024

CNH disclosed plans of investing up to USD 50 million in the farm machinery segment across India with the launch a 105HP tractor in May 2024. This move was aimed at increasing the CNH's presence across the country.

August 2023

Part of Mahindra Group and largest tractor manufacturer Mahindra Tractors launched its much-anticipated and future-ready line of tractors, Mahindra OJA. Touted as a powerhouse of energy, this new tractor range introduced a paradigm shift in Indian agriculture.

Solar-powered innovations

The India agricultural machinery industry is poised for expansion with the surging integration of renewable energy, such as solar, in various machinery to limit the dependency on electricity and achieve lower operational costs. In December 2024, non-profit agricultural research organization ICRISAT received its first industrial design grant in India for a solar-driven simple and affordable water hyacinth harvester designed by a team of scientists. The new harvester can be efficiently managed by semi-skilled and unskilled personnel.

Penetration of international firms

The surging presence of several international manufacturers to extend their dependable and high-quality equipment offerings will add to the India agricultural machinery market development. In August 2024, Japanese Yanmar Holdings Co., Ltd. acquired Indian agricultural machinery manufacturer CLAAS India via its group company Yanmar Coromandel Agrisolutions. This helped Yanmar to accelerate the expansion of its agribusiness in India with a world class facility and proven track record in the production of high quality as well as durable combine harvesters.

Preference for automated systems

The surging need for automated farming to address significant issues, including farm labour shortages whilst increasing the efficiency and precision of agricultural operations will impact the India agricultural machinery market outlook. In September 2024, a semi-automated tractor developed by the University of Agricultural Sciences-Bengaluru helped to reduce the driver's work with features, including automated steering.

Rapid agricultural advances

The India agricultural machinery market share is likely to grow with the magnifying developments in the agricultural sector driven by robust technological advancements, and influx of government initiatives. According to industry reports, the Indian agriculture sector recorded a 3.5% growth rate in Q2 of 2024-25. This can also be attributed to the rising demand for food and the strong focus on product diversification.

India Agricultural Machinery Market Trends

Collaborations and Technology Pushes the Market Forward

The rising partnerships aimed at providing financial support to farmers with easy loan facilities will play a key role in alleviating the India agricultural machinery market value. In April 2025, ACE Ltd. signed an MoU with the Bank of India to offer financial assistance in purchasing ACE tractors and farm equipment. This collaboration helped to strengthen the agriculture sector in rural areas with affordability and fuel efficiency whilst empowering farmers with advanced and cost-effective machinery for enhancing productivity and driving rural development. Moreover, the penetration of smart technology to boost crop yields will fuel the industry expansion. In September 2024, the Governmentinvested Rs 6,000 crore to deploy drones and data analytics to improve production with maximal use of resources and minimised environmental impacts.

India Agricultural Machinery Market Opportunities

Innovation and Sustainability Accelerate Growth in the Market

The India agricultural machinery market will be significantly impacted by the extensive efforts initiated to transform the agricultural space through innovation and sustainability. In April 2025, the Council of Scientific & Industrial Research - Central Mechanical Engineering Research Institute (CSIR-CMERI) introduced its E-Tractor and E-Tiller technology in a significant push towards promoting sustainable as well as energy-efficient solutions in agriculture. The growing prominence of IoT and AI enabled machinery to boost crop yields will further drive the market development. In July 2024, Google introduced the agricultural landscape understanding (ALU) tool for providing agricultural information to farmers about drought preparedness and irrigation.

India Agricultural Machinery Restraints

The India agricultural machinery market expansion may be hindered by the insufficient technological know-how on handling and using the farm machines and equipment. Energy-efficient farm equipment is capital intensive and can be considered a significant investment for most farmers in India. The rise in demand for labour in nonfarm activities may also limit the product uptake to some extent.

India Agricultural Machinery Industry Segmentation

The EMR's report titled "India Agricultural Machinery Market Report and Forecast 2025-2034" offers a detailed analysis of the market based on the following segments:

Breakup by Equipment Type

- Tractors
- Trailers
- Harvesters
- Irrigation Machinery
- Spraying Equipment
- Hay and Forage Equipment
- Others

Breakup by Application

- Weed Cultivation
- Plant Protection
- Sowing & Planting
- Land Development & Seed Bed Preparation
- Others

Breakup by Region

- North India
- South India
- East India
- West India

CAGR 2025-2034 - Market by

Application

Sowing & Planting

10.6%

Land Development & Seed Bed Preparation

10.2%

Plant Protection

XX%

Weed Cultivation

XX%

Others

XX%

India Agricultural Machinery Market Share

Tractors Gain Momentum as Key Drivers in the Market

Tractors will garner substantial ground in the India agricultural machinery market due to their assistance in eliminating the need for human labour whilst saving the time and cost of farmers. In August 2024, a major brand of CNH, New Holland unveiled its first-ever Made-in-India 100+HP (horsepower) tractor across the country. The rise in such instances will favour the product demand.

The demand for trailers in India will expand with their robust abilities to carry bulk materials, such as grains, fertilizers, crops, seeds, soil, and tools, with minimal labour. Trailers also help to streamline various farm tasks whilst reducing the time and efforts needed to move the goods and equipment.

The growing adoption of harvesters to make the harvesting process more efficient, faster, and less labor-intensive across the country will boost the India agricultural machinery industry. Combine harvesters are also revolutionizing agriculture as they help in greatly increasing the efficiency and productivity of the farming operations.

Rising Weed Control Needs Fuel Demand for Eco-Friendly Agricultural Machinery

Weed cultivation will witness higher agricultural machinery demand in India with the rising requirements for tools that remove weeds from fields and gardens. Weeding machines also provide a chemical-free alternative to farmers as they manage weeds without harming the environment and endangering the soil health.

To facilitate plant protection, sprayers are widely used for applying liquid chemicals on plants for controlling pests and diseases. The rising efforts on automation to protect plants from environmental risks, such as heat stroke will add to the segment growth. In February 2023, agricultural sciences company FMC Corporation launched its new drone spray services for farmers in India.

Meanwhile, the growing adoption of broadcast seeders, row crop planters, drills, and transplanting equipment in sowing & planting will foster the India agricultural machinery market development. These systems are highly crucial across the region as they help in planting seeds at the optimal depth, spacing, and rate.

India Agricultual Machinery Market Regional Analysis

Large-Scale Farming and Fertile Plains Fuel Agricultural Machinery Growth in North India

The growing prominence of large scale commercial farming is an important factor for the growth of the North India agricultural machinery market. The northern plain of India is considered a productive agricultural region owing to its fertile soil, favourable climate, and abundant water resources. The optimal environment for crop cultivation is enabling farmers to achieve high yields, subsequently driving the regional market growth._x000D_
The West India agricultural machinery industry revenue is slated to expand with the surging government support for the introduction of innovative equipment to appeal to younger farmers. In February 2025, Gromax Agri Equipment, a joint venture between the Government of Gujarat and Mahindra & Mahindra introduced new 4WD tractor models, Trakstar 536 the Trakstar 525. The growing activities of diverse crop cultivation will further drive the regional market growth.

Competitive Landscape

Leading players in the India agricultural machinery market are working on growth-driven initiatives, such as acquisitions and partnerships to scale their revenues. They are also focusing on new product developments, capacity expansions and technological integration to boost their sales.

John Deere India Private Limited

Founded in 1997 and headquartered in Pune, John Deere India is a premier manufacturer of tractors and agriculture equipment in the country. The company also provides heavy equipment, forestry machinery, diesel engines, drivetrains used in heavy and lawn care equipment.

Escorts Kubota Limited

Founded in 1944 and headquartered in Faridabad, Escorts Kubota Limited is an Indian multinational conglomerate operating in the sectors of agricultural machinery, construction machinery, material handling, and railway equipment. The company is a leader in farm mechanization and smart agriculture.

Action Construction Equipment Ltd.

Founded in 1995 and headquartered in Faridabad, Action Construction Equipment (ACE) Ltd. is an Indian material handling as well as construction equipment manufacturing company. ACE is India's top agricultural equipment manufacturer of tractors, harvesters, balers, and rotavators.

Tractors and Farm Equipment Limited

Founded in 1960, Tractors and Farm Equipment Limited (TAFE) is an Indian agricultural machinery manufacturer with its headquarters in Chennai. TAFE emerged as one of the largest tractor manufacturers across the world and the second largest in India by volume.

Other key players in the India agricultural machinery market report are International Tractors Limited, Tractors and Farm Equipment Limited, Deccan Farm Equipments Pvt. Ltd., CNH Industrial (India) Private Limited, VST Tillers Tractors Ltd., Ambber Innovations Pvt Ltd., and others.