Agricultural Equipments - #SectorUpdates

Increasing adoption of automation and equipment based models in agriculture has imparted a potential impact on the growth of the market. Notably, during COVID, the demand in the sector outweighed the supply which indicates towards the opportunities in the sector. India is developing into a hub for manufacturing agricultural equipment, primarily for tractors. In India, the market is projected to reach USD 272.36 billion by 2029 from USD 168.30 billion in 2022, exhibiting a CAGR of 7.1% during the forecast period. Agriculture and its allied sector, which includes agricultural equipments, contribute 16% to the GDP. To boost up the farm mechanization in the country, a special dedicated scheme ‘Sub Mission on Agricultural Mechanization (SMAM)’ has been introduced by Government of India aiming at ‘reaching the unreached’ by distributing various subsidized agricultural equipment and machines, making agricultural equipments accessible and affordable for the small and marginal farmers through establishment of Custom Hiring Centers, Hubs for Hi-tech & high value farm equipment and Farm Machinery Banks.

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