India has the 10th-largest arable land resources in the world and accounts for 7.39% of the global agricultural output. The agriculture sector is one of the biggest sectors in India. In fact, it is a key contributor accounting for about 18% of the GDP. The Gross Value Added (GVA) for the agriculture sector was USD 274 billion in 2018, with the food grain production estimated at 284.83 million tonnes. India lies within several agro-climatic zones. Due to this, it enjoys a favorable position for the cultivation of a wide range of fruits, vegetables, and spices. And the whole industry is set for further growth as household incomes, food processing, and agricultural exports increase.
India is among the fastest-growing markets for agricultural equipment. This is because the farmers are adopting modern agricultural technologies to increase their yield. They aim to cater to the increased demand for food supply. Further, the Government has proposed a number of incentives in this sector. These include creating hubs for hi-tech farm equipment and financial assistance for farmers to buy machinery and support industry growth. Besides, the Government also wants to make India self-sufficient in food grain production and increase farm income. With the current farm mechanization of only 40%, there is a huge scope for foreign companies to expand in India. They can enter in every segment of the Agriculture industry, farm machinery, equipment, and allied sectors to expand in India.