Agriculture in India is full of diversity. On 1 hand, there are big plantations and farms, and on the other, there is an abundance of smallholder farmers who use tiny to no mechanization (except by way of diesel operated agricultural pumps) and are largely dependent on climatic situations for irrigation. The Indian market is characterized by innovation in catering to the wants of the latter, while getting reasonably priced.
Government help to smallholder farmers (agriculture employs roughly 70% of the nation), by way of subsidized machinery, gear and supplements is commonplace. There is a lack of consolidation, which is hampering each, productivity per hectare, and the agricultural machinery market. At present worth $ X billion, the Indian agri-equipment and machinery market is expected to grow at CAGR 11.five% over 2015-2020.
A higher development in population (India is now the most populous country in the planet), demand for increased productivity to ensure meals security, and a thriving export industry are some of the drivers of the agricultural mechanization market in India. Lack of awareness & skilled manpower, constraints in terms of average getting power, constraints in terms of a tailor created credit availability with affordable spend-off choices, are only some of the restraints in scaling of adoption of farm mechanization.
India with their modest farm size is at principal stage of adoption. Starting with typical tools of farming like plough and sickle, the agricultural machinery industry has merchandise to offer you in every stage of a crop cycle. Right here marketplace segmentation is carried out on the basis of product and phase variety: tractors, plowing and cultivating machinery, planting and fertilizing, harvesting machinery etc. Tractors are the most typically utilized implements across farms, across geographies. Nonetheless, these are much more common in affluent agricultural states like Punjab, Haryana, and others, and seldom spotted in states like Bihar, Uttar Pradesh, and so forth. The equipment employed in these countries have a tendency to be in the type of smaller sized horsepower, low-technology tractors with relatively low unit prices.
It is critical to note that tiny and medium ticket things, particularly the tiny tractor segment accounts for a large portion of sales in this segment in the nation. The Indian agricultural machinery and gear business face high competition from renowned players like Mahindra & Mahindra Ltd., TAFE, Escorts Groups, Sonalika, John Deere India operating in market spot. The organizations right here strive to strengthen their base on the basis of item functions, pricing, high quality, scale of operations and technology innovation