India Farm Tractor Market (2025-2031) | Analysis, Size, Share, Revenue, Forecast, Trends, industry & Outlook

Latest 2023 Development of the India Farm Tractor Market

India farm tractor market is witnessing an increase in demand due to the rise in agricultural activities and government initiatives to promote farming such as the Pradhan Mantri Fasal Bima Yojana and the Pradhan Mantri Krishi Sinchai Yojana. Additionally, the Indian farm tractor market has been witnessing technological advancements, such as the introduction of precision farming, which uses technology to enhance farm productivity and efficiency. Moreover, there has been an increasing interest in electric tractors in India. Several Indian companies have been developing electric tractors, such as Tirth Agro Technology and Kinetic Green Energy and Power Solutions.

The India farm tractor industry is highly competitive, with both domestic and international players vying for market share. This has led to a focus on product innovation and competitive pricing. Moreover, with the growing trend towards mechanization in agriculture, there has been an increase in demand for high-horsepower tractors that can handle heavier loads and work more efficiently. Further, compact tractors have become increasingly popular among small farmers due to their affordability, ease of use, and versatility. Additionally, the Indian tractor industry is embracing new technologies such as precision farming and telematics to improve the efficiency of farm operations and reduce costs. 

India Farm Tractor Market Highlights

Report Name	India Farm Tractor Market
Forecast period	2025-2031
CAGR	7.8%
Growing Sector	Agriculture

Topics Covered in India Farm Tractor Market Report

The India Farm Tractor Market Report thoroughly covers the market by Horsepower Rating and Drive Type. The India Farm Tractor Market Outlook report provides an unbiased and detailed analysis of the ongoing India Farm Tractor Market trends, opportunities/high growth areas, and market drivers. This would help stakeholders devise and align their market strategies according to the current and future market dynamics.

India Farm Tractor Market Synopsis

India Farm Tractor Market is set to grow at an unprecedented rate on account of the increasing agricultural mechanization. In addition, increasing knowledge among farmers about the benefits associated with tractors is also propelling the market expansion. The key companies are pushing new models and they offer better mileage numbers along with additional features. Moreover, technological improvements in tractor design is also driving the market further. Overall, the India Farm Tractor Market offers significant growth and development opportunities.

According to 6Wresearch, the India Farm Tractor Market is anticipated to grow at a CAGR of 7.8% during 2025-2031. One of the key drivers of the India Farm Tractor Market is the mechanization of farm practices wherein farmers are inclined towards taking assistance from machines for increasing productivity and efficiency. In addition, increasing awareness among the farmers regarding cost efficacy and better productivity of tractors than conventional processes is fuelling adoption across markets. Furthermore, favourable government initiatives along with subsidies for modernizing farming and financial assistance of buying tractors are vital in uplifting the adoption. Moreover, technological upgrades in tractor designs have improved the longevity and fuel-economy of tractors which has been driving more customers thereby supporting growth prospects for this market.

However, the India Farm Tractor Market faces many challenges that hinder its growth. The main issue is the high cost of modern tractors, which is out of reach from small and marginal farmers who are in majority within the agricultural community. In addition, the absence of proper after-sales service and maintenance infrastructure in rural areas frequently leads to long down times which further impacts productivity. Furthermore, the lack of access to credit often limits farmers, particularly smallholder farmers from acquiring modern tractors designed and equipped with high efficiency capabilities. Moreover, the fluctuating government policies and subsidies create an element of uncertainty which makes it hard for manufacturers and farmers to plan long-term investments.

India Farm Tractor Market: Leading Players

Key players of India Farm Tractor Market are Mahindra & Mahindra Ltd., TAFE (Tractors and Farm Equipment Limited), Escorts Group, Sonalika International Tractors Ltd. and John Deere India Pvt. Ltd. These companies have a major presence in the Indian market and offer numerous tractors for segments ranging from small-sized & compact to large and high-power. They also offer post-sales services like maintenance and spare parts to delight the customer.

India Farm Tractor Market: Government Initiatives

The Indian government has significantly influenced the growth of the Farm Tractor Market through strategic initiatives. One prominent initiative is The Pradhan Mantri Kisan Tractor Yojana, offering subsidies for farmers to obtain new tractors, making contemporary farming technology more accessible to the agriculture industry. In addition, the massive Pradhan Mantri Krishi Sinchai Yojana initiative focused on improving irrigation facilities across the country, consequently increasing demands for efficient tractors suitable for modern agricultural needs. Furthermore, the expansive Sub-Mission on Agricultural Mechanization provided financial support and subsidies for farmers to procure cutting-edge farming machinery, such as tractors. Moreover, the innovative Kisan Credit Card scheme permits farmers simplified access to loans for procuring essential equipment vital to their operations, including tractor.

Future Insights of the Market

The India Farm Tractor Market is projected to expand substantially in the coming years. This growth is driven by the growing agricultural mechanization. In addition, rising awareness among farmers regarding benefits linked with tractors is also boosting the growth of the market. Major companies are coming out with new models and they provide better mileage figures as well as additional features. Moreover, technological advancements in tractor design are further propelling the market. Overall, the future of the India Farm Tractor Market looks promising, with many opportunities for growth and development.

Market Segmentation by Horsepower Rating

According to Ravi Bhandari, Research Head, 6Wresearch, the 40 Hp – 100 Hp segment is the dominant segment in the industry and will continue to grow in the coming years. This growth is due to the rising trend amongst small and medium-sized farms to use mechanized farming along with the wide choice among affordable, flexible models in this horsepower range.

Market Segmentation by Drive Type

Based on Drive Type, the two-wheel drive segment is the leading segment in the industry and will continue to grow in the coming years. This can be attributed to their relatively lower costs in comparison to four-wheel drive tractors, combined with easier maneuverability for small farms and greater fuel economy.

Key Attractiveness of the Report

• 10 Years Market Numbers.
• Historical Data Starting from 2021 to 2024
• Base Year: 2024
• Forecast Data until 2031.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• India Farm Tractor Market Overview
• India Farm Tractor Market Outlook
• India Farm Tractor Market Forecast
• India Farm Tractor Market Size
• Historical & Forecast Data of India Farm Tractor Market Revenues & Volume for the Period 2021-2031
• Historical & Forecast Data of India Farm Tractor Market Revenues, by horsepower rating, for the period 2021-2031
• Historical & Forecast Data of India Farm Tractor Market Revenues, by drive type, for the period 2021-2031
• Market Drivers and Restraints
• India Farm Tractor Market Trends & Industry Life Cycle
• Porter’s Five Forces Analysis
• Market Opportunity Assessment
• India Farm Tractor Market Overview, By Competitive Benchmarking
• Market Share, By Technology
• Recent Market Trends
• Recommendations

Markets Covered

The report offers a comprehensive study of the subsequent market segments:

By Horsepower Rating

• Below 40 Hp
• 40 Hp – 100 Hp
• Above 100 Hp

By Drive Type

• Two-wheel Drive
• Four-wheel Drive