Tractor Production and Sales in India, 1989–2009
Abstract: This paper argues that mechanisation of Indian agriculture, as measured by growth in the production and sale of tractors, has continued, although not uniformly, over the last two decades. While the last two decades were a period of slowdown in agricultural production, the data do not support a view of undifferentiated economic decline in rural areas. Our focus on tractors is justified as the Indian agricultural sector has a higher density of four-wheel tractors than other less-developed countries, and India is also one of the major manufacturers of tractors. The paper uses data from a range of sources on production, domestic sales, and exports of tractors for the period 1989 to 2009. Two factors associated with the sale of tractors, namely, availability of credit from banks and public investment in agriculture, are examined. The paper also shows that growth in tractor sales has been associated with a decline in the regional concentration of sales.