Project Report For Agriculture Tools Manufacturing
The project report for Agriculture Tools Manufacturing is as follows.
Although India is still an agrarian economy, a substantial number of farmers have begun to switch from using live sources to mechanical equipment to power their farming operations. The farming community commonly employs mechanical equipment for various farm operations such as tillage, sowing, irrigation, seed production, and threshing, among others. The agricultural equipment industry has seen substantial expansion in recent years as a result of expanding farm mechanisation tendencies. A number of reasons are currently driving this sector, including easy access to credit, government incentives, rising agricultural production, the growth of contract farming, rising rural incomes, and so on. A slew of banks and microfinance institutions have sprung up across rural India in recent years. This has made it easier for farmers to obtain credit to purchase farm machinery, and the government is also providing various subsidy schemes, as well as increasing farmer awareness. All of these factors are critical for the market’s growth, and India is now moving toward mechanised farming to increase yield and profit.
Village craftsmen, smaller units, small-scale companies, and the State Agribusiness Development Corporations create agricultural equipment in the country. Tractors, motors, engines, and industrial equipment are all manufactured by the organised labour industry. The Traditional craftsmen and small-scale companies rely on their own knowledge, user feedback, and government-owned technology development organisations for technological support, and they operate out of their backyards or on the side of the road without conventional business hours. Medium and large-scale companies have their own buildings with good infrastructure, generally as part of an industrial estate, well-established manufacturing and marketing facilities, and employ skilled labour. This facility manufactures diesel engines, electric motors, irrigation pumps, sprayers and dusters, land development technology, tractors, spare parts, power tillers, post-harvest and processing apparatus, and milk equipment. They have a specialist dealer marketing strategy and offer an effective after-sales facility. They also have in-house research and development capabilities or have technology-up-gradation cooperative enterprises with developed countries.
Market potential & Strategy
India has an agrarian economy, with agriculture providing a living for more than half of the population. Agriculture and its related industries accounted for —16 per cent of India’s gross domestic product in 2019. (GDP). Prices and market demand for key goods are influenced by the functioning of this industry. This sector’s performance influences the prices and market demand for key commodities. The availability and quality of agricultural machinery have a favourable impact on the farming sector’s productivity and production. The Indian agricultural machinery market was valued at INR 497.04 billion in 2018 and is predicted to grow at a CAGR of —12.70 per cent from 2019 to 2024, reaching INR 902.41 billion. Due to the country’s economic slump, the industry originally endured poor growth. During the projected period, however, an increase in purchasing power, the availability of improved financing options, and the growth of contract farming are expected to boost market size. India’s agriculture equipment sector is projected to be transformed by the adoption of the sharing economy model and tech-driven start-ups. Farmers have been compelled to mechanise their operations due to labour scarcity. A labour shortage in rural areas has resulted from large-scale migration from rural to urban areas and a variety of rural employment plans. The National Rural Employment Guarantee Agency (NREGA), for example, has had a rippling effect in many places, with labour shortages leading to farm mechanisation.
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