Why Are Tractor Exports From India Increasing? Which Countries Are The Most Active Buyers?
Piyush Goyal, Minister of Commerce and Industry, tweeted that India's tractor exports increased by 224% between April and July 2022 when compared to the same period in 2013. Tractor exports surpassed one lakh for the first time this year in February. On Thursday, Commerce and Industry Minister Piyush Goyal tweeted that India's tractor exports increased by 224% between April and July 2022 when compared to the same period in 2013.
Tractor Exports From India are At An All-Time High
On Thursday, Commerce and Industry Minister Piyush Goyal tweeted that India's tractor exports increased by 224% between April and July 2022 when compared to the same period in 2013. Tractor exports surpassed one lakh for the first time this year in February.
This remarkable achievement comes against the backdrop of the automobile industry's struggle during the COVID-19 pandemic, Prime Minister Narendra Modi's 'Make in India' push, and domestic tractor volumes in recovery mode following moderate sales in recent months.
विदेश चले Made in India ट्रैक्टर !
— Piyush Goyal (@PiyushGoyal) August 25, 2022
India’s exports of tractors registered a spectacular growth of 224% in April-July 2022 over the same period in 2013. pic.twitter.com/aEwMtsx0P1
The Economic Times reports that India exported 11,760 tractors in August 2021 alone.
Tractor exports totaled 10,490 units in December 2021, up from 9,234 units in January 2021 and 11,186 units in January 2021.
The Trend is Expected to Continue.
Tractor sales peaked in June, with overseas shipments reaching a record high of 12,849 units.
The previous high for tractor exports was 12,690 units in September 2021. According to the report, tractor exports have remained above 10,000 for 13 consecutive months.
Who are the Most Active Buyers?
According to News NCR, the top buyers are the United States (25.2%), Nepal (7.3%), Bangladesh (6.5%), Thailand (5.4%), and Sri Lanka (5.3 percent).
Why are Tractor Exports Growing?
The support of the center is crucial. Since 2014, the government has taken several proactive and effective measures to increase India's exports.
Read more: Here are Various Types of Implement in Agriculture Every Farmer Should Have
Why are India's Tractor Exports Increasing, and Which Countries are Purchasing the Most?
The previous export promotion schemes were rationalized by a new Foreign Trade Policy (FTP) 2015-20, which was launched on April 1, 2015.
According to the report, two new schemes were introduced: the Goods Export from India Scheme (MEIS) to improve goods exports and the Scheme for Increasing Services Exports (SEIS) to increase service exports from India.
These Schemes' Duty Credit Scripts were Made Fully Transferable.
In 2017, a mid-term review of the Foreign Trade Policy (2015-20) was conducted, and corrective measures were put in place. Because of the COVID-19 pandemic, the Foreign Trade Policy period (2015-20) has been extended until 2022. The Department of Commerce established a new Logistics Department to oversee the integrated development of the logistics sector.
Interest Equalization Scheme for Rupee Export Credit Before and After Shipment The rupee was introduced on April 1, 2015, to provide exporters with cheaper credit.
Above and Beyond
One of the reasons for the increase in exports, according to Sonalika Tractors International Business President and CEO Gaurav Saxena, is the government's support for agriculture in countries where there is a greater interest in farm mechanization and food security.
The Economic Times quoted Saxena as saying, "... a boom in tractor exports has been seen in Europe and the US, where our volumes and demand have exceeded expectations."
"If something happens in the Indian market, sales from another country can support the trade," Saxena said, elaborating on the importance of exports in trade. So it's always a good idea to do export business and avoid becoming overly reliant on a single market."
Another reason, according to Saxena, can be attributed to the specific category of tractors. Tractor demand in India ranges up to 60 horsepower (HP), with 30-60 HP tractors being the most popular. However, the export demand is between 30 and 60 horsepower.
"At first, we didn't have a tractor line that would work outside of India." We now have a strong product lineup ranging from less than 30HP to more than 60HP and up to 120HP. Similarly, many manufacturers have developed efficiencies and product lines suitable for export markets," he said.
Outside of India, farms are very large and follow corporate farming practices, so people use larger machines. As a result, they require improved technology, a more comfortable cabin, and AC-equipped tractors. He stated that such products have contributed to our success.
"I expect this export market to grow to around 2 lakh tractors in five years, which is nearly double the current level," Saxena said.
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