India Agricultural Machinery Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2026-2035)

India Agricultural Machinery Market Growth

Innovation and Precision Farming Drive Growth in India’s Agricultural Machinery Industry

The surging emphasis on innovations to enhance efficiency, limit labour costs, and support sustainable farming practices are some major India agricultural machinery market trends. In August 2024, world’s largest tractor manufacturer Mahindra Farm Equipment Sector introduced its new set of rotavators that can be used for every soil and crop type in a bid to revolutionize land preparation for Indian farmers. Rapid advancements in transmission technology, lifting capacity, and precision farming will prove favourable for the industry growth. In September 2024, the Indian government set up 22 precision farming development centres across the nation to test new technologies and modify them to meet the local needs.

Key Trends and Recent Developments

India Agricultural Machinery Market Trends

Collaborations and Technology Pushes the Market Forward

The rising partnerships aimed at providing financial support to farmers with easy loan facilities will play a key role in alleviating the India agricultural machinery market value. In April 2025, ACE Ltd. signed an MoU with the Bank of India to offer financial assistance in purchasing ACE tractors and farm equipment. This collaboration helped to strengthen the agriculture sector in rural areas with affordability and fuel efficiency whilst empowering farmers with advanced and cost-effective machinery for enhancing productivity and driving rural development. Moreover, the penetration of smart technology to boost crop yields will fuel the industry expansion. In September 2024, the Government invested Rs 6,000 crore to deploy drones and data analytics to improve production with maximal use of resources and minimised environmental impacts.

India Agricultural Machinery Market Opportunities

Innovation and Sustainability Accelerate Growth in the Market

The India agricultural machinery market will be significantly impacted by the extensive efforts initiated to transform the agricultural space through innovation and sustainability. In April 2025, the Council of Scientific & Industrial Research – Central Mechanical Engineering Research Institute (CSIR-CMERI) introduced its E-Tractor and E-Tiller technology in a significant push towards promoting sustainable as well as energy-efficient solutions in agriculture. The growing prominence of IoT and AI enabled machinery to boost crop yields will further drive the market development. In July 2024, Google introduced the agricultural landscape understanding (ALU) tool for providing agricultural information to farmers about drought preparedness and irrigation.

India Agricultural Machinery Restraints

The India agricultural machinery market expansion may be hindered by the insufficient technological know-how on handling and using the farm machines and equipment. Energy-efficient farm equipment is capital intensive and can be considered a significant investment for most farmers in India. The rise in demand for labour in nonfarm activities may also limit the product uptake to some extent.

India Agricultural Machinery Industry Segmentation

India Agricultural Machinery Market Share

Tractors Gain Momentum as Key Drivers in the Market

Tractors will garner substantial ground in the India agricultural machinery market due to their assistance in eliminating the need for human labour whilst saving the time and cost of farmers. In August 2024, a major brand of CNH, New Holland unveiled its first-ever Made-in-India 100+HP (horsepower) tractor across the country. The rise in such instances will favour the product demand.

The demand for trailers in India will expand with their robust abilities to carry bulk materials, such as grains, fertilizers, crops, seeds, soil, and tools, with minimal labour. Trailers also help to streamline various farm tasks whilst reducing the time and efforts needed to move the goods and equipment.

The growing adoption of harvesters to make the harvesting process more efficient, faster, and less labor-intensive across the country will boost the India agricultural machinery industry. Combine harvesters are also revolutionizing agriculture as they help in greatly increasing the efficiency and productivity of the farming operations.

Rising Weed Control Needs Fuel Demand for Eco-Friendly Agricultural Machinery

Weed cultivation will witness higher agricultural machinery demand in India with the rising requirements for tools that remove weeds from fields and gardens. Weeding machines also provide a chemical-free alternative to farmers as they manage weeds without harming the environment and endangering the soil health.

To facilitate plant protection, sprayers are widely used for applying liquid chemicals on plants for controlling pests and diseases. The rising efforts on automation to protect plants from environmental risks, such as heat stroke will add to the segment growth. In February 2023, agricultural sciences company FMC Corporation launched its new drone spray services for farmers in India.

Meanwhile, the growing adoption of broadcast seeders, row crop planters, drills, and transplanting equipment in sowing & planting will foster the India agricultural machinery market development. These systems are highly crucial across the region as they help in planting seeds at the optimal depth, spacing, and rate.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

India Agricultual Machinery Market Regional Analysis

Large-Scale Farming and Fertile Plains Fuel Agricultural Machinery Growth in North India

The growing prominence of large scale commercial farming is an important factor for the growth of the North India agricultural machinery market. The northern plain of India is considered a productive agricultural region owing to its fertile soil, favourable climate, and abundant water resources. The optimal environment for crop cultivation is enabling farmers to achieve high yields, subsequently driving the regional market growth.

The West India agricultural machinery industry revenue is slated to expand with the surging government support for the introduction of innovative equipment to appeal to younger farmers. In February 2025, Gromax Agri Equipment, a joint venture between the Government of Gujarat and Mahindra & Mahindra introduced new 4WD tractor models, Trakstar 536 the Trakstar 525. The growing activities of diverse crop cultivation will further drive the regional market growth.

Competitive Landscape

Other key players in the India agricultural machinery market report are International Tractors Limited, Tractors and Farm Equipment Limited, Deccan Farm Equipments Pvt. Ltd., CNH Industrial (India) Private Limited, VST Tillers Tractors Ltd., Ambber Innovations Pvt Ltd., and others.