Higher productivity and greater output are the two major contributions in farm mechanization.

Tractors form an integral part of farm mechanization and have a crucial role to play in increasing agricultural productivity. Tractor is a highly versatile piece of machinery having a multitude of uses, used in agriculture both for land reclamation and for carrying out various crop cultivation and also employed for carrying out various operations connected with raising the crops by attaching suitable implements and to provide the necessary energy for performing various crop production operations involved in the production of agricultural crops. Tractors are capital intensive, labour displaying used as a mode of transport, in electricity generation, in construction industry and for haulage operation. It has now become an integral part of farm structure .The application of tractor for agricultural activities which swept India during the last twenty years have erased the problem of farmers. Farm mechanization program in India aims to integrate the use of available human and animal farm power with mechanical sources of power for increasing the productivity. Indian tractor industry, comparatively young by world standards have expanded at a spectacular pace during last four decades. Consequently it now occupies a place of pride in India's automobile industry. U.S.A., U.S.S.R. and only a few Western European countries exceed the current production of tractors in India, but in terms of growth India's growth is unmatched even with countries of long history of tractor manufacturing. The spectacular achievement reflects the maturity and dynamism of tractor manufacturers and also the policies adopted by the government to enable it to effectively meet the demand. The tractor industry in India has made a significant progress in terms of production and capacity as well as indigenisation of technology. It is a typical sector where both imported technology and indigenous developed technology have developed towards meeting the overall national requirements. The global spotlight on tractors manufacturers certainly in terms of volume seems to be swinging away from the USA, UK and Western and Eastern Europe towards India where growth in the number of producers and the total volume in recent years have been impressive. In India tractor industry has played a vital role in the development. India's gross cropped area is next only to United States of America and Russia and along with fragmented land holdings has helped India to become the largest tractor market in the world. But it drops to eight position in terms of total tractor in use in the country when compared to international figures, only 3% of total tractors used all over the world . It is to be noted that while the overall automobile industry is facing recession the tractor industry is growing at 9%.About 20% of world tractor production is carried out in our country only. The arable land in India is high as 12% of the total arable land in the world. Tractor market in India is about Rs 6000 crore. On an average around 400000 tractors are produced and their sale is 260000.Uttar Pradesh is the largest tractor market in our country. One out of every four tractor is being purchased here. Indian tractor market has to be viewed considering its position in the world with respect to key parameters as given below: INDIAN TRACTOR MARKET

DESCRIPTION UNITS WORLD TOTAL/AVG INDIA INDIA RANK Arable Land Mn Hectare 1444 170 2 Irrigated Area Mn Hectare 249.6 45.8 2 Tractors In Use Tractors/000 Hectares 28 10.5 8

The Tractors available in developed countries have advanced features and accessories that is not found in Indian tractors .Tractor industry has made a steady and satisfactory progress even in drought areas. Four factors have contributed to the steady progress: * Government laid stress on the mechanization of agriculture with a view to boost food grain production. Therefore agriculture sector started receiving financial assistance. * There is an increase in awareness among the farmers for the need of farm mechanization and are keen to acquire tractor with the help of credit facilities from financial institutions. * Agronomists believe that there is need for more tilling due to depletion of moisture and repeated cultivation of land .It is precisely for this reason that the demand for tractors was well maintained even during a draught period. * Animal power available is too inadequate to meet power demand of our farmers. Mechanized operations are preferred to eliminate drudgery and delay, also labour shortage during harvesting increased the use of tractor. At the end of the day there are enough reasons to believe that the industry will grow because:

UK. Czechoslovakia 1963 TAFE Messey Ferguson.The reason for medium horse power tractors being more popular is that the major tractor demanding states like Punjab Haryana and Uttar Pradesh have plenty of alluvial soil which do not require deep tilling.A . Hence there exists tremendous scope for exports. * Irrigation facilities reduce reliance on the monsoon and allow for quick yielding varieties of food -grain .The cost of a finished tractor here is as much as the cost of gear box in developed countries.S. Soon after the decision for the manufacture of tractors was made during second plan.CZECH SLOVAKIA .R.The manufacture of tractors started in India mainly with the help of foreign collaboration secured from internationally reputed companies from the USA . * Regarding exports India of latter has been exporting tractors to a number of countries.S. * Co-ordinate with Ministry of Industry. which envisages review and analysis of imported technologies in the country and suggested measures for appropriate choices acquisition and implementation of foreign know-how. state land development banks and regional rural banks. * 95% of tractor sales are on credit.S.This reduces the cropping cycle to 3-4 months from the traditional 5-6 months. DSIR has introduced a scheme. their collaborators and the year of commencement of production: MANUFACTURERS AND COLLABORATORS TABLE 4: MANUFACTURER COLLABORATOR YEAR Eicher Tractors Ltd Gebr. but predominantly to Srilanka . Major objective of scheme is: * To undertake financial. Philippines and Bangladesh. List of tractor manufacturers. government approved number of foreign collaboration agreements.WEST GERMANY. UK 1961 . Most of the models which were taken up for manufacture in India were developed overseas. POLAND . Lately it is visualised that higher hp segment has the maximum growth potential Higher horse powered tractors will be the future requirement with the government intention to encourage contract farming through the leasing in and leasing out of farm lands. * Carry out a technological analysis of the imported technology and provide a stage of art technology in the country and status of implementation of collaboration. * The tractors between the 31-40 horse power and 31-40 hp range dominate the market .* More farmers are opting for multiple cropping over last decade. but also the potential export markets can be explored by Indian in the future. * FOREIGN COLLABORATION Tractor industry along with others benefited from this policy which allowed free inflow of foreign technology . Credit is extended by commercial banks. Since Indian tractors confirm to the international standard by virtue of their foreign collaboration it is possible for India to export to more tractors to the rice and wheat growing countries like Canada.Nepal and U. Commerce and Finance by providing technology data input.deteriorating foreign exchange situation in African countries and their poor buying capacity.7% . economic and legal analysis of set of data on foreign collaboration. * Selective support to strength measures in Research and Development for technology absorption.This indicate the increased popularity of multiple cropping. USSR . Reduced cropping cycle require deep tilling which translates into higher demand for tractors.Eicher Tractor. A higher availability of credit will lead to a higher demand for tractors . * Cost of tractors in India is the cheapest in world . * According to a study conducted by PHD Chamber of Commerce and Industry . "National Register of Foreign Collaborations". comparatively cheaper imports of second hand tractors by South East Asian countries from developed countries and the disintegration of erstwhile U. The establishment and present status of tractor industry owes a great deal to the support received by the Indian entrepreneurs from foreign collaboration during the initial phase of manufacture.However the study reveals that exports from India are going down in the recent years . West Germany 1961 Gujarat Tractors Ltd Motokov -Praha.The major reason for the decline in exports of tractors of tractor from India is being the failure to find an extensive market overseas . Country's net cropped area had remain virtually stagnant while gross cropped area increased by about 4. Since purchase of tractor involves a big investment its demand in affected by the availability and easiness of credit.

K. Italy 1999 .Fahr. 1981 **Pratap Steel Rolling Mill Own know-how 1983 Vst Tillers Mitsubishi.Ursus Poland 1964 Mahindra And Mahindra International Harvestor. Czechoslovakia 1971 *Kirloskar Tractors Lmt Klochner-Humboldt Deutz.INDIA 1974 *Pittie Tractor Limited Own know-how 1974 *Harsha Tractor Ltd Moto Import. Romania 1986 *Asian Tractor Ltd Own know-how 1989 Bajaj Tempo Ltd Own know-how 1987 International Tractors Own know-how 1998 Larsen And Tourbo Ltd John Deere. USA 1999 New Holland Tractor New Holland Tractors .Italy 1999 Greaves Ltd Same Deutz. Japan 1983 *United Auto Tractor Ltd Uzina Tractorul.U. UK 1965 +Escorts Tractor Ltd Ford . 1971 Hindustan Machine Tools Motokov -Praha. Russia 1975 *Auto Tractor Ltd British Leyland.K. U.Escorts Ltd Moloimport Arazawa Zaklady Mechaniczne . Germany 1974 Punjab Tractor Limited CMERI.

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