India registers highest growth in export of tractors after China
Clocking a compounded annual growth rate (CAGR) of over 26% during 2003-13, India had showed the third highest growth in exports of tractors after Poland at 31% and China at 30.5%. The domestic tractor industry growing at a CAGR of over 20% is likely to cross 8 lakh units by the end of this fiscal. “Demand for tractors is heavily dependent on agriculture production and level of monsoon received. Thus with forecast of normal monsoon this year, production, demand and sale of tractors might improve in the later half of this year,” D S Rawat, national secretary general of ASSOCHAM (Associated Chambers of India) said. As per a recent study by industry body ASSOCHAM, Karnataka has been ranked on top with the highest CAGR of over 18% in tractor sales during the eight year period of 2004-05 and 2011-12. It is also the only state to have witnessed higher growth than the all-India level of 16%, the study found. However the hitch is that Karnataka is suffering from poor tractor penetration of just about 3%, as highlighted by the study. “Haryana and Punjab remained on top with highest tractor penetration of about 27% in both the states followed by Uttar Pradesh (23.5%), Bihar (20%) and Odisha (12%),” revealed the ASSOCHAM Economic Research Bureau (AERB). India is predicted to get normal monsoon rainfall at 102% of long-period average during June-September this year, as per a recently released ASSOCHAM-Skymet Weather joint study. Besides farming and crop cultivation, the increasing use of tractors in non-farm operations such as infrastructure and construction projects, transportation, drawing water and serving as multi-utility vehicles have all greatly contributed in expanding the domestic tractor market.
May 6, 2015 | 8:28 pm IST.
to success.