Mumbai, India (PressExposure) May 21, 2009 -- Despite the prevailing recessionary pressures and liquidity constraints, the agricultural machine tools and equipment market is likely to grow substantially in the coming days. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the Indian farm equipment market, which is currently worth $7.3-billion, is expected to grow at a compounded annual growth rate (CAGR) of 5% to $7.68 billion in 2009.
The forecasts of a rapidly-expanding market have brought a cheer to thesmall and mid-sized farm equipment manufacturers in India. These units account for a bulk of motorised and bullock-driven agricultural tool products in the country.
"The robust demand for high-quality agricultural tools both on the domestic and global front and the additional emphasis placed by the government on agricultural investments will help thefarm equipment market grow considerably in the near term," commented Ravi Beri, Senior Vice President, Karnal Agricultural Implements Manufacturer's Association (KAIMA).
Besides steady demand, the initiatives taken by the government to boost agricultural tools cluster and small units spread across the country are expected to drive the market expansion in the current year.
"The steps taken by the government to ease the availability of institutional finance for small farm equipment manufacturers will enable these players to perform better. Provision of tax benefits and lower interest rates for loans taken for infrastructure development are also expected to provide a major boost to this sector," said R Bajaj, proprietor of Bajaj Implements, a small-scale agri tools company in Haryana.
FICCI further projects the Indian farm equipment market to grow to $8 billion by 2010.