Farm Equipment, also known as Agricultural Equipment, involves all those machineries which aid in the production of crops and agricultural livestock. Farms require a varied range of equipment, suited for different farming scale and environments. Farm equipment is used by a number of agricultural workers across different states in India and is deployed across an extensive range of farm practices such as planting, irrigation, harvesting, and others.

India is an agrarian economy, with over 50% of the population dependent on agriculture for their livelihood. As of 2019, agriculture and its allied sector accounted for 16% of India’s gross domestic product GDP. The performance of this sector drives the prices and market demand for essential commodities. The accessibility and quality of agricultural machinery positively impact the productivity and output of the farming sector. 

  • 9.5%

    India Agriculture Equipment Market CAGR during 2019-25

India is the second-largest market of farm equipment in the Asia Pacific region. Easy financing options, government support in the form of subsidies given under the Sub-Mission on Agriculture Mechanization Scheme, the growing population as well as increasing demand for food items have played well to give a boost to the demand for India farm equipment market.

The Indian farm equipment market is experiencing rapid growth with strong potential for future growth. India has remained one of the primary nations which fuelled the growth of the farm equipment market. The tractors, power tillers, combine harvesters and rice transplanters are some of the equipment for which a surge in demand has been seen in the past few years. The tractors account for the major growth in the farm equipment market of India. Punjab, Uttar Pradesh and Haryana are the largest markets for tractors, together accounting for more than 50 per cent of sales. The sales in Punjab and Haryana are driven largely by the presence of consolidated wheat farms and owing to the emergence of corporate participation in the process of agriculture through the promotion of contract farming and sourcing. Major players in the India farm equipment market are Mahindra & Mahindra Ltd. (India), Deere & Company (India), Escorts Group (India), Netafim Ltd (India) and Tractors and Farm Equipment Limited.


The agriculture and allied sectors continued to be one of the major driving force behind the sustainable economic development of the country. Despite agriculture contributed to 17.4% of the country's economy during 2016-17, still it is accelerating the demand for mechanization in the country. Though the level of farm mechanization in India stands about 40-45% in the year 2017-18, within the states such as Uttar Pradesh, Haryana, and Punjab among others at a relatively higher penetration rate, this level of mechanization is considered to be still low as compared to the countries such as the United States(95%). Brazil (75%), and China (57%). While the mechanization level still lags behind the major economies, still the country has experienced a growth rate in the agricultural machinery sales at a rate of 3.64% over the past few years.

The agricultural machinery sales in the country is likely to experience a growing trend in the years to come particularly attributing to the factors such as increasing availability of farm power, unprecedented sales of tractors and power tillers, and positive outlook of institutional credit policies coupled with rising government intervention to boost the rate of mechanization in the country to meet the growing food demand.

Govt. of India, is committed to promote use of additional farm machinery in the coming years to achieve improvement in awareness towards diverse utilization of mechanization and credit support so that access to latest technologies is not a constraint. Farm mechanisation in India is in the initial stages, with the mechanisation 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.

Moreover, the total refinance quantum has increased by 18?GR over the period 2006-18, where the refinance of farm mechanization has experienced 12?GR over the same period. Thus, the increasing farm mechanization coupled with the rising financial assistance by the Indian government under various schemes such as Remunerative Approach for Agriculture and Allied sector Rejuvenation(RKVY), National Food Security Mission(NFSM), National Mission on Oilseeds and Oil Palm(NHM & NMOOP) is likely to accelerate the tractor sales in the years to come. 

To promote the application of farm mechanization, the government has set up the Farm Machinery Training and Testing Institutes FMTTIs and formulated bodies to quality check agricultural machines and implements.

Indian Council for Agriculture and Research ICAR and State Farm Corporation of India have been set up to improve the adoption of new technologies in crop production. Other initiatives include setting up financial institutions and providing incentives and subsidies.

India farm equipment market is anticipated to witness growth during the forecast period 2020-26F backed by a rise in consumption, low water requirements in horticulture, advanced technologies, and rising adoption of technically innovative farm machinery and restrain the use of traditional machinery. Further, the expansion of arable land for cultivation is also expected to raise significant demand projections for Bahrain agriculture and farm machinery. Rising government efforts towards enhancement of the agriculture sector to improve the productivity and supporting sound growth of the respective sector is expected to raise considerable demand projections for agriculture equipment in Bahrain in the near future and contribute towards the sound growth of the Bahrain agriculture equipment market in the coming years.