Emergence of Tractor Companies in India

by Amili R. SEO

India is pre-dominantly an agrarian economy. Ask your parents or your grand-parents, and you may get to hear stories about farming. Even now, we rely on fresh farm produce for our daily sustenance. Now, consider any movie scene that showcases farming, and what do you see? There will be fields of lush green crops in full bloom, ripe for harvest, while a farmer rides his tractor on a dirt road besides the field.

Tractors have become a quintessential part of farming. While they are not a home-made invention, tractors have become a massive contributing factor to the success stories of Indian farmers. So how did we get to this point?

A Brief History

Tractors were first introduced by the British government in India, in 1914. Their main purpose was to clear the land of unwanted shrubberies in order to cultivate the same land. The government also let the tractors out for hire to rich land-owners, who used them for farming purposes. Within a couple of decades, an industry for tractor spare parts began to emerge in India.

In the 1940s, surplus tractors, left over from the World War, were brought to India, as the country achieved independence and the new government emphasised the importance of modernizing the agricultural set-up in the country. By the 1960s, Indian tractor companies started developing tractor models which were more suitable for the local terrain and farming requirements. Escorts Tractors Ltd. emerged as one of the prominent manufacturers amongst the top tractor companies in India.

By 1970s, however, the Indian government banned the import of foreign tractors and parts, sparking a drive for innovation and ingenuity within India. During the Green Revolution of the 1980s, India began exporting tractors to the world. Around the same time, Indian government aided farmers to help boost the agrarian economy, this included providing subsidies on Indian-made tractors and directing banks to offer low-interest loans for agricultural machinery.

Current Scenario

Studies have shown that nearly 4.3 million tractors are in operation in India, with only 1 in 20 rural households owning one, as of 2011. Further, the market is expected to grow by 7-8% every year.

Tractor companies have adapted their models to provide multi-functionality. Tractors can now be used for more than just farming. Tractors are playing a vital role in construction work as well as material hauling because you can hook up a trolley at the back and carry equipment. Further, you can get a permit to use your tractor on the road, for transporting material.