Tractors in India

Tractors in India is a major industry and significant contributor to its agriculture output gains.

In 1947, as India gained independence from British colonial empire, the level of agriculture mechanisation was low. The socialist oriented five-year plans of the 1950s and '60s aggressively promoted rural mechanisation via joint ventures and tie-ups between local industrialists and international tractor manufacturers. Despite these efforts, the first three decades after independence local production of 4-wheel tractors grew slowly. By the late 1980s tractor production was nearly 140,000 units per year, and a prevalence rate of less than 2 per 1,000 farmers.

After economic reforms of 1991, the pace of change increased and by late 1990s with production approached 270,000 per year. In early 2000s, India overtook the United States as the world's largest producer of four-wheel tractors. FAO estimated, in 1999, that of total agricultural area in India, less than 50% is under mechanised land preparation, indicating large opportunities still exist for agricultural mechanisation.

In 2013, India produced 619,000 tractors accounting for 29% of world's output, as the world's largest producer and market for tractors. India currently has 16 domestic and 4 multinational corporations manufacturing tractors.

War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid-1940s. In 1947 central and state tractor organisations 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 imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960.

Local production began in 1961 with five manufacturers(Eicher, Gujarat Tractors, TAFE, Escorts, M&M) producing a total of 880 units per year. By 1965 this had increased to over 5000 units per year and the total in use had risen to over 52,000. By 1970 annual production had exceeded 20,000 units with over 146,000 units working in the country.

Six new manufacturers were established during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. HMT, a large public sector unit, began manufacturing Agricultural Tractors in 1972 under the HMT brand name with technology acquired from Zetor of the Czech Republic. Escorts Ltd. began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975-76

A further five manufacturers(Auto Tractors, Haryana Tractors, United Auto Tractors, Asian Tractors, VST Tillers) began production during this period but only Last one survived in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985 and reached 140,000 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 1980s mainly to countries in Africa.

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