Applied Science Reports App. Sci. Report.

www.pscipub.com/ASR 3 (2), 2013: 132-139

E-ISSN: 2310-9440 / P-ISSN: 2311-0139 PSCI Publications

Current Trends Of Indian Tractor Industry: A Criticalreview

Subrata Kr. Mandal*, Atanu Maity
Scientist, CSIR-Central Mechanical Engineering Research Institute, Durgapur, India
*Corresponding Author email: subrata.mandal72@gmail.com

Key words ABSTRACT

India is an agricultural country. Higher productivity and greater output are
Tractor Industry the two major contributions in farm mechanization of any country. Tractors
form an integral part of farm mechanization and have a crucial role to play
CAGR (Compound annual growth rate) in increasing agricultural productivity. Agriculture accounts for
approximately 25 percent of India's GDP. Agriculture in India is the means
GDP of livelihood of almost two thirds of the workforce in the country and
employs nearly 62 percent of the population. On the other hand, Indian
farm mechanization tractor industry is the largest in the world, accounting for one third of
global production. The tractor industry in India has made a significant
progress in terms of production and capacity as well as indigenization of
technology. It is a typical sector where both imported technology and
indigenous developed technology have developed towards meeting the
overall national requirements. In the long term, the industry growth is
expected to continue from a moderate CAGR rate of five percent to seven
percent largely due to the continued thrust by the government to increase
agricultural GDP. In this paper an analysis has been presented to depict the
growth of tractor industry with future prospect in context with the
agricultural production.
2013 PSCI Publisher All rights reserved.

Introduction
Higher productivity and greater output are the two major contributions in farm mechanization. Tractors are an
integral part of mechanization and have a crucial role to play to enhance agricultural productivity. By advancement in
manufacturing of tractors, there's possibility that could lead India to another green revolution. In 1961 since tractor
manufacturing in India started, the industry has grown at a phenomenal pace in the last five decades to achieve a record
production of over three lakh units per year (Jain, 2006). Tractor is a highly versatile piece of machinery for multi use both
for land reclamation and for carrying out various crop cultivation and also employed for carrying out various operations
connected with raising the crops by attaching suitable implements and to provide the necessary energy for performing
various crop production operations involved in the production of agricultural crops. Tractors are capital intensive also. This
is generally used as a mode of transport, in electricity generation, in construction industry and for haulage operation. It has
now become an integral part of farm structure. The application of tractor for agricultural activities which swept India
during the last twenty years has erased the problem of farmers. Farm mechanization program in India aims to integrate the
use of available human and animal farm power with mechanical sources of power like tractors for increasing the
productivity (Jain, 2006).
Today India's gross cropped area is next only to United States of America and Russia and along with fragmented
land holdings which has helped the country to become the largest Tractor Market in the world. But it drops to eight
position in terms of total Tractor in use in the country when compared to international figures, only 3% of total tractors
used all over the world . It is to be noted that while the overall automobile industry is facing recession the tractor industry
is growing at 9%. About 20% of world tractor production is carried out in our country only. The tractors between the 31-40
horse power and 31-40 hp range dominate the market .The reason for medium horse power tractors being more popular are
that the major tractor demanding states like Punjab, Haryana and Uttar Pradesh have plenty of alluvial soil which does not
require deep tilling. Lately it is visualized that higher hp segment has the maximum growth potential. Higher HP tractors
will be the future requirement with the government intention to encourage contract farming through the leasing in and
leasing out of farm lands (Jain, 2006).

Indian tractor industry

history
Indian Tractor Industry developed in 1945 to 1960 because of the War surplus tractors and bulldozers were
imported for land reclamation and cultivation in mid 1940's. In 1947 Central and State Tractor Organizations were set up to
develop and promote the supply and use of tractors in agriculture and up to 1960, the demand was met entirely through
 App. Sci. Report. 3 (2), 2013: 132-139

imports. In 1951 there were 8,500 tractors in use, 20,000 in 1955 and 37,000 by 1960. Local production began with five
manufacturers in 1961 producing a total of 880 units per year. Eicher, Gujarat Tractors, TAFE, Escorts, M&M are the
major tractor manufacturers. During 1965 this had increased to over 5000 units per year and the total in use had risen to
over 52000. In the year 1970 annual production had exceeded 20000 units with over 146000 units working in the country.
From 1971 to 1980 six new manufacturers were well established during this period although three companies (Kirloskar
Tractors, Harsha Tractors and Pittie Tractors) did not survive. Escorts Ltd began local manufacture of Ford tractors in 1971
in collaboration with Ford, UK. Others were HMT and PTL (SWARAJ) Total production climbed steadily to 33000 in
1975 reaching 71000 by 1980 (Tractor1, 2013).
In India tractor industry has played a vital role in the development. Indian tractor industry is very young when
compared with world development. Consequently it now becomes a pride in India's automobile industry. U.S.A., U.S.S.R.
and only a few Western European countries exceed the current production of tractors in India, but in terms of growth
India's growth is unmatched even with countries of long history of tractor manufacturing. The spectacular achievement
reflects the maturity and dynamism of tractor manufacturers and also the policies adopted by the government to enable it to
effectively meet the demand. The tractor industry in India has made a significant progress in terms of production and
capacity as well as indigenization of technology. It is a typical sector where both imported technology and indigenous
developed technology have developed towards meeting the overall national requirements. The global scenario on tractors
manufacturers certainly in terms of volume seems to be swinging away from the USA, UK and Western and Eastern
Europe towards India where growth in the number of producers and the total volume in recent years have been impressive
(Jain, 2006). In the long term, the industry growth is expected to continue from a moderate CAGR rate of five percent to
seven percent largely due to the continued thrust by the government to increase agricultural GDP. One can expect the
domestic industry to stabilize at about 4,00,000 tractors per year.

Growth & Market demand

India's growth is unmatched even with countries of long history of Tractor manufacturing. The Indian Tractor
Industry's spectacular achievement reflects the maturity and dynamism of tractor manufacturers and the various policies
adopted by the government to enable it to effectively meet the demand.
Many factors influence the tractor demand. Primary demand comes from agricultural growth and the secondary
demand comes from allied uses of tractors, primarily haulage. These factors apart, non-agricultural use of tractors (for
haulage) continued to increase, benefiting tractor demand. Credit and money availability has always affected tractor
industry and mechanization fortunes. Farm mechanization program in India aims to integrate the use of available human
and animal farm power with mechanical sources of power for increasing the productivity (Tractor1, 2013).
There are currently 14 players in the industry. Mahindra & Mahindra is the leading player in the industry.
Monsoon season is a key driver for sales of tractors. A series of good or bad monsoon can affect the sales. In recent years
the industry has registered a good growth in sales, both domestic as well as exports. This is also partly because of the
initiative of the government to boost up agriculture and agricultural machinery industry. The tractor penetration level in
India is very low as compared to the world standards. Also the penetration levels are also not uniform throughout the
country. While the northern region is now almost saturated in terms of new tractor sales, the southern region is still under
penetrated. The medium horse power category tractors, 31-40 HP, are the most popular in the country and fastest growing
segment (Tractor2, 2013).
Credit facilities for farmers continued to improve and the tractor market expanded rapidly with the total in use
passing the half million mark by 1980. 1981 to 1990 A further five (Auto Tractors, Haryana Tractors, United Auto
Tractors, Asian Tractors, VST Tillers) manufacturers began production during this period but only last one survived in the
increasingly competitive market place. Annual production exceeded 75000 units by 1985 and reached 140000 in 1990
when the total in use was about 1.2 million. Then India - a net importer up to the mid-seventies - became an exporter in the
80's mainly to countries in Africa between 1991 to 1997.
Since 1992 it has not been necessary to obtain an industrial license for tractor manufacture in India. By 1997
annual production exceeded 255000 units and the national tractor park had passed the two million mark. India has now
emerged as one of the world leaders in wheeled tractor production. Saturation achieved in Punjab with tractor density as
high as 82 per 1000 ha against Indian average of 12.4, world average of 17.4 and 32.1 in developed countries. Intense
competition has led to rapid advances in design and quality.
Volume growth in the Indian tractor industry has remained strong in FY12 even when the automotive industry has
experienced slackening demand on account of rising inflation, hardening interest rates and increasing fuel prices. After a
period of downturn during FY08 and FY09, the up-cycle in the tractor market has extended over the last three years
(FY10-FY12) as shown in Fig.1. Some of the cyclical factors that have contributed to healthy demand side economics are
good south-west monsoons supporting farm output, strong rural liquidity sustained by higher minimum support price
(MSP) for crops and double digit food inflation, besides adequate credit availability. Structural drivers like scarcity of farm
labour in light of alternate employment opportunities, steady replacement demand and growing non-agricultural use of
tractors have also supported tractor volumes. In addition, long-term drivers of the industry such as low tractor penetration,

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increasing budgetary allocation towards the rural sector and government support for farm mechanization remain favorable
(Tractor1, 2013).

Figre1. Trend in Yearly Tractor Sales Volumes (Domestic + Export) [2]

Since the inception, growth in production, quality and performance of tractors and other agricultural equipment
has greatly improved. In the long run some agencies have projected the growth for Indian Tractor industry to continue till
2030. Which is very much logical considering the low level of tractor penetration, lower horse-power tractor usage and
much lower yield per acre by the Indian farmers. There is tremendous scope for farm mechanization in India. India lags far
behind the global averages and more specifically to China in terms of agriculture produce yield per hectare for various
crops.
As per rough estimate by some experts of tractor requirement in India to till the complete arable land through
mechanical means would indicate that there is a need for 16.4m tractors in India, whereas the current number of tractors
available in the country are less than 5m.

Table 1. Computation of maximum tractor population in India (Source: Company, field research, Kotak Institutional Equities estimates)
Sr. No. Description Value
01 Total area under agriculture (mn acres) 393
02 Tractor-hours required per acre per year (hours) (a) 20
03 Number of tractor-hours required per year (mn hours) 7855
04 Number of hours a tractor can work per day (hours) 10
05 Number of days that a tractor is required in a year (b) 60
06 Number of tractor-hours available per tractor per year (hours) 600
07 Total number of tractors required for agricultural purposes (mn) 13.1
08 Add: Tractors used for non-agricultural purposes (mn) (c) 3.3
09 Total number of tractors required in India (mn) 16.4

Table 2. Estimated number of tractors in India at different CAGR of annual tractor sales (Source: Company, field research, Kotak
Institutional Equities estimates)
CAGR in Annual sales (%)
Months
Year 6 7 8 9 10 11 12
2012 4.3 4.3 4.3 4.3 4.3 4.3 4.3
2013E 4.8 4.8 4.8 4.8 4.8 4.8 4.8
2021E 9.0 9.2 9.5 9.8 10.1 10.4 10.7
2022E 9.5 9.8 10.2 10.6 11.0 11.4 11.8
2023E 10.0 10.4 10.9 11.4 11.9 12.5 13.1
2024E 10.6 11.1 11.7 12.3 13.0 13.7 14.4
2025E 11.2 11.8 12.6 13.3 14.1 15.0 16.0
2026E 11.8 12.6 13.5 14.4 15.4 16.4 16.4
2027E 12.5 13.4 14.5 15.6 16.4
2028E 13.2 14.3 15.5 16.4
2029E 14.0 15.3 16.4
2030E 14.9 16.4
2031E 15.9 16.4
2032E 16.4

Tractor Penetration
Indian Tractor penetration is expected to raise, because of low crop yields, increased use of tractors for non-
agricultural purposes, shortening replacement cycle and scarce farm labour.

Crop yield
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Crop yields in India are almost half of those in China and other major global agricultural economies due to use of
lower quality seeds and low mechanization of farms. Due to a rising population and an increase in per capita food
consumption Indian farmers would require increasing crop yields (Singh, 2000a).

Use of tractors for non-agricultural purposes

Tractors are replacing bullock carts and labor as the cost of ownership of a 15-hp tractor is lower than the cost of
owning two bullocks to pull a cart and renting a tractor is more lucrative than owning a tractor. A tractor works much faster
than bullocks, which helps the farmer to crop land twice a year. Only 29% of farmers cultivate two crops a year on their
farms, which explains Indias low farm output. Tractors are being extensively used in rural areas as transport and for
construction work (Singh, 2000b).

The replacement cycle of tractors

The replacement cycle of tractors has shrunk to 8-10 years from 10-12 years earlier, driven by an increase in the
use of tractors: Tractors are rented out for agricultural work and used in construction activity. A shorter replacement cycle
will be crucial to boost tractor volume growth.

Indian Tractor Market

India's gross cropped area is next only to United States of America and Russia and along with fragmented land
holdings has helped India to become the largest tractor market in the world. But it drops to eight position in terms of total
tractor in use in the country when compared to international figures, only 3% of total tractors used all over the world [6]. It
is to be noted that while the overall automobile industry is facing recession the tractor industry is growing at 9%. About
20% of world tractor production is carried out in our country only. The arable land in India is high as 12% of the total
arable land in the world. Table 3 shows the land availability in Indian scenario. Tractor market in India is about Rs 6000
crore. On an average around 400000 tractors are produced and their sale is 260000.Uttar Pradesh is the largest tractor
market in our country. One out of every four tractor is being purchased here. One third of world's Tractor production is in
India. About 20% of world tractor production is carried out in India. The Total Turn Over is 10000 crore and the Total
investment is 8000 crore. With Employment of 28000 people directly and 150000 people indirectly the Tractor population
is3000000 compared to 900000 in China. Indian tractor market has to be viewed considering its position in the world with
respect to key parameters as given below:

Table3. Indian Tractor Market

Description Units World Total/Avg India India Rank
Arable Land Mn Hectare 1444 170 2
Irrigated Area Mn Hectare 249.6 45.8 2
Tractors In Use Tractors/1000 Hectares 28 10.5 8

HP wise performance
The sale of Agricultural tractors and other farm equipment has increased. To-day more than 250,000 tractors are
manufactured every year by 13 manufacturers. These tractors are available in different horsepower ranges of less than 25 to
more than 55 hp. The share of various HP tractors in the recent years has been as follows. Different sizes of tractors are
manufactured in India ranging from less than 25 HP to more than 45 HP but most popular range is 31-35 HP (Table 4)
(Tractor2, 2013).

Table 4. % Share of different HP tractors of total sales

HP Range 97-98 98-99 99-00 00-01
<25 7 7 6 4
25-30 12 15 20 20
31-35 51 51 46 45
36-40 9 8 9 10
41-45 5 4 7 8
>45 15 15 12 14

The Indian tractor market has traditionally been a medium HP market, with 31-40 HP tractors accounting for over
45% of industry volumes. The industry is, however, witnessing polarization, with higher growth in the upper and lower HP
segments, and the rate of growth in medium HP segment remaining moderate. A farmers choice of tractor size is typically
a trade-off between the utility of the tractor (which includes haulage capacity requirement) and its price. Despite higher
prices, several factors have led to a structural shift in the industry towards higher powered tractors. The factors include the
increasing tractor penetration in southern India, which has traditionally been a higher HP market (due to higher power
requirement in paddy fields); replacement demand for higher HP tractors from the northern region; increasing use of
tractors in non-agricultural applications and growth in export of higher HP tractors. Nevertheless, growth in the greater

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than 40 HP tractor market is expected to remain sound. Shift towards higher HP segment augurs well for the tractor
industry as it results in higher EBIDTA (earnings before depreciation interest and tax) per tractor. With greater portfolio
concentration towards higher HP offerings, market participants like John Deere, New Holland and Eicher are expected to
benefit from this change in customer purchase pattern.
Strong underlying demand in the less than 20 HP category has prompted the entry of organized players like
M&M; a segment which is currently catered to largely by un-organized players. With roughly 39% of the area under
cultivation contributed by small and marginal farmers (less that 2 hectare land holding) the opportunity in this space are
significant; more so in light of very low tractor penetration at present. Also with scarcity of farm labour and rising cost of
bullock carts, the trend of ownership of small and less expensive tractors by marginal farmers is catching up. Apart from
lower initial costs, these tractors deliver better fuel efficiency when compared to their higher powered cousins, making it
viable for small farmers to upgrade from a bullock cart to a tractor. However, restricted application to soft soil conditions,
competition from second hand market of higher HP tractors, and limited credit worthiness of marginal farmers are some of
the factors that shall also influence the growth in the sub 20 HP tractor market. Fig.2 explain the HP segment in Indian
context.

Figure2. HP segment in FY10 and FY12 (For 9 months)

Tractor industry plays an important part as agriculture sector has a major contribution to Indias GDP. Tractors are
part of agricultural machinery industry. There are currently 14 players in the industry. Mahindra & Mahindra is the leading
player in the industry. Monsoon season is a key driver for sales of tractors. A series of good or bad monsoon can affect the
sales. In recent years the industry has registered a good growth in sales, both domestic as well as exports. This is also partly
because of the initiative of the government to boost up agriculture and agricultural machinery industry. The tractor
penetration level in India is very low as compared to the world standards. Also the penetration levels are also not uniform
throughout the country. While the northern region is now almost saturated in terms of new tractor sales, the southern region
is still under penetrated. The medium horse power category tractors, 31-40 HP, are the most popular in the country and
fastest growing segment (singh, 2004).

Table 5. Manufacturer and collaborators

MANUFACTURER COLLABORATOR YEAR
Eicher Tractors Ltd Gebr,Eicher Tractor, West Germany 1961
Gujarat Tractors Ltd Motokov Praha, Czechoslovakia 1963
TAFE Messey Ferguson, UK 1961
Escorts Ltd Moloimport Arazawa Zaklady Mechaniczne Ursus, Poland 1964
Mahindra And Mahindra International Harvestor, UK 1965
Escorts Tractor Ltd Ford,U.K. 1971
Hindustan Machine Tools Motokov Praha, Czechoslovakia 1971
Kirloskar Tractors Lmt Klochner-Humboldt Deutz, Germany 1974
Punjab Tractor Limited CMERI,INDIA 1974
Pittie Tractor Limited Own know-how 1974
Harsha Tractor Ltd Moto Import, Russia 1975
Auto Tractor Ltd British Leyland, U.K. 1981
Pratap Steel Rolling Mill Own know-how 1983
Vst Tillers Mitsubishi, Japan 1983
United Auto Tractor Ltd Uzina Tractorul, Romania 1986
Asian Tractor Ltd Own know-how 1989
Bajaj Tempo Ltd Own know-how 1987
International Tractors Own know-how 1998
Larsen And Tourbo Ltd John Deere, USA 1999
New Holland Tractor New Holland Tractors .Italy 1999
Greaves Ltd Same Deutz- Fahr, Italy 1999

Foreign Collaboration

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Tractor industry along with others benefited from this policy which allowed free inflow of foreign technology.
The manufacture of tractors started in India mainly with the help of foreign collaboration secured from internationally
reputed companies from the USA, UK, USSR,WEST GERMANY, POLAND,CZECH, SLOVAKIA. Most of the models
which were taken up for manufacture in India were developed overseas. Soon after the decision for the manufacture of
tractors was made during second plan, government approved number of foreign collaboration agreements. The
establishment and present status of tractor industry owes a great deal to the support received by the Indian entrepreneurs
from foreign collaboration during the initial phase of manufacture.
List of tractor manufacturers, their collaborators and the year of commencement of production:

Exports
Regarding exports India has been exporting tractors to a number of countries, but predominantly to Srilanka,
Nepal and U.S.A However study reveals that exports from India are going down in the recent years .The major reason for
the decline in exports of tractors from India is being the failure to find an extensive market overseas, deteriorating foreign
exchange situation in African countries and their poor buying capacity, comparatively cheaper imports of second hand
tractors by South East Asian countries from developed countries and the disintegration of erstwhile U.S.S.R but also the
potential export markets can be explored by India in the future. Since Indian tractors has the international standards by
virtue of their foreign collaboration it is possible for India to export to more tractors to the rice and wheat growing
countries like Canada, Philippines and Bangladesh.
Tractor exports from India have grown by around 41 percent in 2005-2006 as shown in Fig.3, in which the US
absorbed a major share. Exports to other countries, such as South Asian countries, Malaysia and Turkey, are growing
rapidly as well. Indian players have aggressively started exporting to African countries by bidding for government tender
requirements. Indian tractors are gaining acceptance in international markets. In the past three years, exports of Indian
tractors have grown at a CAGR of over 55 percent. In 2005-2006 the industry exported 28,118 tractors.

Figure 3. Tractor export from India during 00-06 Figure 4. Tractor export from India during06-12

Exports contribute about 11% to the total tractor sales of the country as shown in Fig.4. Volumes saw a decline in
FY09-FY10 on account of global economic downturn. While Nepal, Bangladesh, Sri Lanka and the United States remain
major export destinations, the expanding footprint of Indian tractor manufacturers in African and new South-East Asian
markets is expected to drive export growth over the medium to-long term. Export to neighboring countries such as
Thailand, Malaysia and Indonesia is also supported by the Asian Free Trade Agreement, giving way to falling duty
structure among member countries. Further, export volumes are expected to benefit from the introduction of higher HP
tractors by Indian manufacturers. TAFE, M&M, and John Deere are the major tractor exporters from India.

Figure 5. Tractor sales in India by state [2]

By-State Analysis

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Ninety three percent of the tractor industry is concentrated in twelve major states namely, Andhra Pradesh, Bihar,
Gujarat, Haryana, Karnataka, Maharashtra, Madhya Pradesh, Orissa, Punjab, Rajasthan, Tamil Nadu and Uttar Pradesh.
Uttar Pradesh is the largest tractor market. Tractor sales in states such as Karnataka, Maharashtra, Tamil Nadu and Gujarat
have shown a tremendous growth in the 2005-2006 period of 63 percent, 54 percent, 47 percent, respectively. Meanwhile,
tractor sales in Bihar and Madhya Pradesh fell by 28 percent each. Fig.5 represents the details of tractor usage based on
state analysis.

Latest Developments In Tractor Technology

The recent developments, in tractor technology, that have taken place in abroad, are not always relevant under
Indian conditions. Some of the developments, for instance, those that aims at increasing driver comfort, making tractors
suitable for large land holdings etc, are not necessarily appropriate under Indian conditions. More sophistication means
higher price, which may not be acceptable to the local farmers. On the other hand, developments such as those aimed at
improving fuel economy and, those aimed at improving, reliability, ease of operations, are suited to the Indian conditions
(Jain, 2006).

Tractor Engines
Developments, relating to the engines, are improvement in fuel efficiency, turbo charging of engines, to reduce
the weight, of the engines, which is not relevant under local conditions, as, turbocharger is a delicate high-speed
mechanism, which is difficult to maintain, and, requires careful operation. Development aimed at increased life of critical
engine parts, such as the use of ceramics, substituting diesel fuel, wholly or partially, by fuel like compressed natural gas,
may be suitable to Indian conditions.

Transmission And Final Drive

The developments relating to transmission system are more number of gears and, higher maximum speed,
synchromesh gears, hydrostatic hydrodynamic transmission, four wheel drive. Developments like drivers chamber etc. are
not quite suitable to Indian conditions, where unlike in the advanced countries, high initial cost of tractors, employing these
features, may not be acceptable to farmers. There is however, scope for increasing the haulage speed, up to, a maximum of
40 Km/hr.

Hydraulic System
Hydraulic system, of implements control, is now well developed in India. Electronic sensing devices have now
come into use, abroad, for sensing movement of the linkages draft load and depth of operation. This is being developed, by
some units, in the country.

Steering System
Hydraulic or power steering is now common, on tractors abroad This is a use full development which reduces the
turning effort ZF steering have taken up their manufacture in the country and this would be available to the tractor
manufacturers However, its application may be limited on tractors because of its extra cost

Ergonomics And Operator Safety

Ergonomics and, operators, safety and comfort, have received considerable attention abroad, particularly, noise
and vibration control and, operator seating and space. Studies for reducing vibrations are quite relevant, under Indian
conditions. Since most of the tractors used, in the country, are designed abroad, the operator space and controls have been
designed to suit the anthropometric measurements, of 95% of the driver population, in those countries. It is necessary to
redesign the operator space, to suit the operators, in our country.

Size And Weight Of Tractor

In some of the advanced countries, particularly, (USA there is a trend for using higher H.P. tractors, the current
popular size being 100H.P. Efforts are also being made to reduce the weight of the tractor. These are not relevant under
local conditions, because of the small land holdings of the farmers, which cannot sustain a higher priced tractor and weight
is not a problem for those tractors, which are mainly used for dry land cultivation. There may be a need to develop low
weight models for wet land cultivation in India.

Recommendations
Apart from the suggestions given above, for adapting certain developments relating to the tractor technology,
other measures are necessary, to improve the efficiency of the tractors, as well as, to encourage the tractor industry, to
concentrate on developing new designs and products with their own efforts, rather than, looking for foreign collaboration,
whenever a need arises for introducing a new model in the market. Some of the recommendations are discussed in the
preceding sections.
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Improvement In Fuel Efficiency

Improving fuel efficiency, of the tractor engines, is a matter of national importance. Any saving effected in fuel
consumption would reduce the drain on foreign exchange and therefore should receive utmost priority from all concerned.
Reducing the specific fuel consumption is an expensive and time consuming exercise and requires a specialized expertise
and knowledge, which is not readily available with the industry.

Improvement In Quality Of Tractor Implements

All the benefits that one can expect from a fuel-efficient engine, can be nullified, if matching implements are not
used with the tractor. If, properly designed implements, matched to the tractors are used 20% to 30% improvement, in
performance efficiency and proportional fuel economy can be achieved. Each tractor manufacturer, should design
implements properly matched to their tractors and, of standardized quality and make the knowhow for the same, available
to the implement manufacturers and adopt a system, of quality audit and monitoring, to ensure production of desired
quality implements.

Testing Facilities
Tractor testing facility is currently available in India only at C.F.M.T.T.I, Budni. Due to rapid increase of total
tractor production during the last couple of years and expected to increase further over the coming years, there is a need to
develop more such testing centers to cope up with the huge pressure related to testing of tractors.

Conclusions
The paper reviewed the Indian tractor industry scenario. It has been observed that many factors influence tractor
demand. Primary demand emanates from agricultural growth and the secondary demand from dual use of tractors,
primarily haulage. Indian tractor industry, comparatively young by world standards have expanded at a spectacular pace
during last four decades. Suitable incentives, for indigenous development, of new tractor model, should be provided. This
is necessary to encourage R&D, in tractors, in India. Mechanization will, therefore, justifiably increase, helping the tractor
industry as a whole. The most popular size, of the tractor, in the country is, 35 HP, followed by, 25 and 45 HP. The
farmer's choice, of tractor size, is a compromise, between, the utility of the tractor, for multiple uses, including, haulage
and, its price.

Reference
Jain Ramesh C. 2006. Tractor Industry in India Present and Future. Paper presented at roundtable forum for regional agricultural machinery
manufacturers and distributors associations, Seoul, Korea, 22-23 Nov. 2006.
Singh G. 2004. Agricultural Machinery Industry in India (Manufacturing, marketing and mechanization promotion), Central Institute of Agricultural
Engineering, Bhopal.
Singh G. 2000a. Modernization of Agricultural in India Part I Farm mechanization. Agricultural Situation in India, January 2000.
Singh G. 2000b. Growth pattern and performance characteristics of tractors used in India. Journal of Institution of Agricultural Engineers (UK),
Landwards, spring, pp 17-25.
Tractor1, Accessed on 30.11.2013. Available at http://www.icra.in/Files/ticker/SH-2013-Q1-1-ICRA-Tractors.pdf.
Tractor2, Accessed on 30.11.2013. Available at http://www.researchandmarkets.com/reports/607322/tractor_market_in_india_an_analysis.pdf.

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