Agricultural Machinery Market in India 2015-2019 to grow at a CAGR of 7.93

The agricultural machinery market in India to grow at a CAGR of 7.93% over the period 2014-2019.

Agriculture plays a major role in a source of employment as well as India's GDP. In the country, over 70% people depends on agriculture business as the major source of income. According to the Central Statistics Office, National Statistical Organization, India, the agriculture and allied sector contributed 13.90% to GDP during 2013-2014 (at 2004-2005 constant prices).

Because of the increase in the prices of conventional fuels and rising concerns of environmental pollution, farmers are considering alternative fuel options such as LNG, CNG, kerosene, vegetable oil, diesel, and propane, to power their machineries. For instance, New Holland developed a hydrogen powered tractor in 2011, NH², which emits oxygen and water. Another market trend is the adoption of bio-diesel tractors. Although this equipment is expensive, farmers adopting them because of benefits such as longevity of the engine, low operating costs, and reduced maintenance costs.

According to the Australian Department of Agriculture, real value of agri-food demand in India is likely to rise between 2009 and 2050. End-users require efficient farm cultivation to cope with this increasing demand for food. Although the arable area has not increased in proportion to the demand for food, farmers are increasing the efficiency and speed of production by adopting advanced agricultural machinery to meet this demand.

Also Agricultural Machinery Market report states that fluctuating prices of raw materials could lower their margins, affecting the overall market growth.

Source:http://www.businesswire.com/