The Indian Parliamentary Standing Committee on Agriculture has highlighted concerns over the low foreign direct investment (FDI) in the agriculture sector, despite ongoing modernization efforts. Supporting 17% of the global population and contributing 20% to India’s GDP, agriculture employs nearly half of the Indian population. However, only 47% of agricultural operations are mechanized, lagging behind China and Brazil. With 86% of farms being under 2 hectares, small landholdings hinder mechanization. The farm equipment market, valued at $16.73 billion in 2024, is projected to reach $25.15 billion by 2029, driven by government policies and rising farm incomes. The government is considering standardizing equipment designs and providing manufacturing training to enhance quality and compatibility, addressing the growing demand for modern machinery amid labor shortages and increasing food production needs.
