E-Store and Digital Catalogue : Agricultural Machinery & parts

ABOUT THE INDUSTRY

Globally, agricultural machinery market is expected to reach USD 230-250 Billion by 2023. India's farm equipment market likely to grow to USD 18 billion by 2025 from the current USD 13 billion. Farm mechanization in India is in the initial stages, with the mechanization level ranging from 40-45%, which is very low compared to that in developed economies, where mechanization has reached beyond 90%.India's farm equipment market is 7% of the global market, with more than 80% of the value contribution coming from tractors. Over the last few years, there has been a considerable progress in agriculture mechanization. A significant proportion of farmers in the country have already started moving from using animate sources to mechanical equipment to power their farming activities. Mechanical equipment for various farm operations like tillage, sowing, irrigation, plant protection and threshing, etc., are generally being used by the farming community. As a result of increasing farm mechanization trends, the agricultural equipment market has witnessed strong growth in the past few years. This market is currently being driven by a number of factors such as easy availability of credit, government incentives, increasing agricultural productivity, emergence of contract farming, increasing rural incomes, etc.

Key Industry Characteristics

Indian agricultural machinery market is valued at ~USD 8 Billion.
India is a net exporter of agricultural machineries, driven by export of tractors. Indian agricultural machinery industry mostly produces tractors. In terms of sales, nearly two-third comes from tractors, while other agricultural equipment constitutes the rest.
Tractor accounts for most of the farm mechanisation in India. India is the largest manufacturer of farm tractor in the world. Today, domestic manufacturers are capable of producing a wide range of advance tractors with capacities ranging from 20 HP to 120 HP.
Indian agricultural machinery manufacturers are mostly MSMEs (nearly 90 percent). More than 1 lakh rural artisans are engaged in the manufacture of hand tools used for agricultural purposes (e.g., shovels, sickles, etc.)

Growth Drivers

Labour Shortage : Labour shortage has been a major reason that has driven farmers towards farm mechanization.
Ease of Financing: In recent years, a number of banks and microfinance institutions have been set all across rural India. This has provided farmers an easy availability of credit to purchase farm machinery.
Government Incentives: Incentives in the form of subsidies, low import duties on agricultural machinery and easy financing schemes by the Indian government has also been a major driver of the farm equipment market in India.
Rising incomes: As a result of strong economic growth and agricultural productivity, the income levels of rural households have been continuously increasing over the last few years. Rising incomes have enabled farmers to significantly increase their spending on agriculture mechanization.
Large Untapped Market: Despite strong growth in recent years, the penetration of tractors and a number of related equipment still remains relatively low. This is expected to leave a lot of room for future growth.
Emergence of Contract Farming: The emergence of contract farming is also expected to give a strong boost to the agricultural equipment market in India. We expect contract farming to enable farmers to get the benefit of technology, training, and financing with the contractor’s support. This is expected to facilitate the adoption of mechanized farming practices.

Classification

Competitive Landscape

The Indian agricultural machinery and equipment industry face high competition from renowned players like Mahindra & Mahindra Ltd., TAFE, Escorts Group, Sonalika, John Deere India operating in market place. The market is expected to become more consolidated in the years to come, as these major players in the market are expanding their business by adopting various strategies such as mergers & acquisitions, expansions, partnerships and product launches.

GOVERNMENT INITIATIVES

Some of the recent major Government initiatives in the sector are as follows :

In May 2020, Government announced the launch of animal husbandry infrastructure development fund of Rs 15,000 crore (US$ 2.13 billion).
In September 2019, Prime Minister, Mr Narendra Modi launched National Animal Disease Control Programme (NADCP), expected to eradicate foot and mouth disease (FMD) and brucellosis in livestock. In May 2020, Rs 13,343 crore (US$ 1.89 billion) was allocated to the scheme.
In May 2019, NABARD announced an investment of Rs 700 crore (US$ 100 million) venture capital fund for equity investment in agriculture and rural-focused start-ups
Under Union Budget 2019-20, Pradhan Mantri Samman Nidhi Yojana was introduced where a minimum fixed pension of Rs 3000 (US$ 42.92) was to be provided to the eligible small and marginal farmers, subject to certain exclusion clauses, on attaining the age of 60 years.
The Government of India came out with Transport and Marketing Assistance (TMA) scheme to provide financial assistance for transport and marketing of agriculture products in order to boost agriculture exports.
The Agriculture Export Policy, 2018 was approved by the Government of India in December 2018. The new policy aimed to increase India’s agricultural export to US$ 60 billion by 2022 and US$ 100 billion in the next few years with a stable trade policy regime.
The Government of India is going to provide Rs 2,000 crore (US$ 306.29 million) for computerization of Primary Agricultural Credit Society (PACS) to ensure cooperatives are benefitted through digital technology.
The Government of India launched the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) with an investment of Rs 50,000 crore (US$ 7.7 billion) aimed at development of irrigation sources for providing a permanent solution from drought.
Government plans to triple the capacity of food processing sector in India from the current 10 per cent of agriculture produce and has also committed Rs 6,000 crore (US$ 936.38 billion) as investments for mega food parks in the country, as a part of the Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA).
The Government of India has allowed 100 per cent FDI in marketing of food products and in food product E-commerce under the automatic route.

Source : IBEF

BENEFITS OF REGISTRATIONS

Enhanced SEO
Promotions alongside EEPC India organized Virtual Exhibitions
Hosting on websites of overseas Indian Embassies & Hi Commission, partner Industry associations & trade bodies
Sustained Online and Offline publicity & promotion
Easily accessible & compatible platform
search tools for suppliers profiles
Access to supplier contacts

EEPC INDIA initiatives to promote Agriculture Machinery Exports

EEPC INDIA has been at the forefronts of promoting India Agriculture Machinery exports with several initiatives as follows :

Organizing India Pavilion in Agriculture Shows over the years in various markets such as:
- Agritechnica, Hanover, Germany
- International Agricultural Fair, Novi Sad, Serbia
- Agri Myanmar, Yangon, Myanmar
Creating a dedicated panel for Agriculture Machinery to boost the exports
Policy intervention from time to time