Farm Mechanisation Sector Aligns with Sustainabilityfocused Self Reliance

Farm productivity has been adversely hit by a ceaseless migration of rural population to cities for 'better prospects' in the recent past, more so than ever before.

- Dipti Barve

This has triggered a significant growth in the market for farm machinery, especially tractors and harvesting equipment, to boost productivity. In 2023, the agricultural machinery market in India was valued at Rs 1.13 trillion and is expected to reach Rs 1.66 trillion by FY2029, expanding at a compound annual growth rate (CAGR) of 6.69 percent during the 2024-2029 period. Government initiatives, such as the Pradhan Mantri Kisan Samman Nidhi and subsidies for agricultural machinery purchases, are also encouraging farmers to adopt advanced technologies, further fuelling the growth of India's agricultural machinery market. Business models such as custom hiring and tractor ownership have been started to increase the deployment of farm machinery across the country. Startups are supporting farmers through the Farming-as-a-Service (FAAS) model. With the support of new technologies such as electric tractors (e-tractors), precision agriculture and custom hiring the farm mechanization industry is moving towards transformation from traditional tractor production to sustainable and customer-centric tractors by 2030. Let's explore further.

The role of modern agricultural machines is very crucial as they help in increasing agriculture production and productivity, improving the utilization efficiency of costlier inputs such as seeds, fertilizers and irrigation water, besides the traditional use of humans and animals in farming. However, the adoption of mechanization by the farmers of various states depends on varying factors such as socio-economic conditions, geographical conditions, crops are grown, irrigation facilities etc.