The Indian agricultural implements market was worth US$ 9.7 Billion in 2019. Agricultural implements consist of a wide range of manual and mechanical tools such as threshers, cultivators, over plows, seed drills, chaff cutter machines, axes, etc. They help in reducing labor and improving the efficiency of agricultural activities. India has achieved considerable progress in the field of agricultural implements over the past decades. At the time of Independence, Indian farmers mostly used animal operated implements (such as bullock-drawn plows and wooden planks) and hand tools (including spades, pick axes, crowbars, sickles and choppers) for pulverization, compaction and smoothening of the soil. Later, the Green Revolution brought about large-scale farm mechanization which encouraged a significant number of farmers to opt for modern agricultural implements including combine harvesters, rice trans-planters, power tillers, threshers, tractors, pumping sets, etc.

In India, the growing incomes of the farmers have boosted the demand for farm implements. In addition, acute shortage of skilled labor for agricultural activities has further led to the growing demand for agricultural equipment. Moreover, the attractive subsidies provided by the Central and State governments have also encouraged farmers to purchase modern agricultural implements.

Indian Agricultural Implements Market Trends:

• Substitute for manual labour: One of the biggest advantages of agriculture implements is that they can replace manual labour. Although India represents amongst the largest countries for manpower in the world, all sectors of the economy have been affected by the scarcity of labour. This impact is currently being felt more in the agricultural sector compared to other sectors. Labour constitute a vital input in agricultural production, however, with rising urbanisation and better opportunities, they are migrating from rural to urban parts of the country. 
• High Productivity and efficiency: Use of agricultural implements increase production, efficiency and per man productivity. Mechanization increases the yield of land per unit of area and also resulting in lower cost of work, resulting in better use of land and hence increasing farm income. Agricultural implements are expected to increase yields by 25-30% in states with a low level of mechanisation, and by up to 10% in states that are already highly mechanised.
• Long Terms Cost Savings: Although buying agricultural implements involve high initial capital expenditure. Over a longer period of time, they prove to be more cost-effective compared to manual labour and work animals. This is because animals need to be fed whether they are doing work or not.
• Improvements in Agriculture Techniques: The use of agricultural implements also provides benefits during irrigation, land reclamation and the prevention of soil erosion. For example, ploughing by a tractor reclaims more land and therefore extends the cultivated area as it smoothens hillocks, fills in depressions and gullies and eradicates deep-rooted weeds. It also prevents soil erosion.
• Government Support: Another major driver of the agriculture implements industry is the fact that it represents a major focus area for the government. Agriculture remains a primary means of livelihood for more than 50% of the country’s total population and, as a result, it represents an important vote bank for any government that wants to retain power. The government of India is also providing subsidies to local farmers on water, electricity, agricultural machinery, agrochemicals, hybrid seeds, etc. In addition, both state and central government often waive off loans given to the farmers.
• Large Agricultural Economy: India is the second-largest populated country accounting for around 18% of the total world population. Catalysed by a rising population, the requirement for various agricultural products has also increased significantly. Moreover, more than 50% of India’s population is dependent on agricultural products which are further promoting the growth of the market.
• Increase in custom hiring of implements: The high capital cost of agriculture implements may often restrain many small-scale farmers to buy them. Moreover, farmers with small land holdings do not find it cost-effective to invest into their own agricultural implements. This has resulted into a large market for the custom hiring of implements where implements can be rented out to farmers for a specific time and cost.

From 56.5% in 1950-51 to ~17% in 2016-17, the share of Agriculture in India's GDP has been on a continuous decline. The reversal of this decline, will be critical to ensuring India's GDP consistently grows at over 8% in the times to come. Agriculture plays a vital role in India's economy. Over 58 per cent of rural households depend on agriculture as their principal means of livelihood. The government has realized that to catapult India into 8% GDP growth trajectory, will only be possible if all the three sectors i.e. Agriculture and Allied, Industry and Services, grows in tandem from strength to strength.

Farm mechanization in India is 40 percent compared to 95 percent in the US and Western Europe, 80 percent in Russia, 75 percent in Brazil and 48 percent in China and hence is a gap which will have to be filled for infusing growth momentum in the sector. Mechanisation can result in savings of 15-20 percent in seed and fertilizer consumption, savings in time and labour costs and the enhancement of farm productivity.

The Indian agriculture has undergone a sea change i.e. from manual and bullock farming to utilization of improved equipment and power farming and has resulted in increasing the cropping intensity. India does not need to import tractors, combine harvesters and other improved equipment, which are available within the country.  Specialized equipment for cultivation of vegetables, oilseeds and other cash crops, however, need to be imported/developed to increase productivity of these crops to with the developed countries in the world.

With a view to enhancing the pace of agricultural mechanization, the Government has laid emphasis to provide financial assistance to the farmers and other target groups for the purchase of different kinds of farm equipment, demonstration of new equipment among farmers for the spread of new technology, human resource development in operation, maintenance/ repairs and management of agricultural machinery and the quality improvement through testing and evaluation besides institutional credit & fiscal measures.  The Farm Machinery Training & Testing Institutes  at Budni (M.P.), Hissar (Haryana), Garladinne (A.P.) and Bishwanath Chariali (Assam) established by the Government have playing a vital role in promoting agricultural mechanization.

Constraints in promotion of mechanization

The constraints in promotion of mechanization include the varied requirement of equipment for each agro climatic zone, the small and fragmented land holding, low investment capacity of the farmers, inadequate irrigation facilities, know how status of the farmers, repairs & maintenance facilities etc.