India's tractor export sector has decisively broken its two-year slump, charting a clear path to recovery in the current calendar year. After a period of muted performance, overseas shipments have regained positive momentum and are on course to cross the significant milestone of one lakh units once again.
Data Points to a Steady Turnaround
According to the latest figures released by the Tractor & Mechanisation Association (TMA), total tractor exports from India reached 95,191 units in the first eleven months of 2025. This marks a solid 6% increase compared to the same period in 2024. Industry analysts note that consistent monthly shipment rates throughout the year signal a stable export trajectory for the coming months.
Poonam Upadhyay, Director at Crisil Ratings, provided context for the rebound. She highlighted that tractor exports had previously peaked at 124,901 units in CY2021 and 131,850 units in CY2022. However, the following two years saw a sharp decline, with shipments falling below the one-lakh unit threshold. "This was primarily due to muted demand in key geographies like Africa, Turkey, and the United States," Upadhyay explained. "Currency volatility and high inflation in several export destinations further hampered tractor offtake."
Manufacturers Report Strong Overseas Growth
The revival in 2025 is broad-based, with leading manufacturers posting impressive numbers. Market leader Mahindra & Mahindra reported a 17% surge in its tractor exports, selling 18,304 units between January and November 2025. Veejay Nakra, President of the Farm Equipment Business at M&M, attributed this growth to a robust performance in South Asia and Africa. "We continue to maintain a positive outlook for our exports business moving forward," Nakra stated.
Another major player, Escorts, also witnessed a significant jump, exporting 5,906 units in the same eleven-month period against 4,044 units a year earlier. The company has indicated that this export momentum is likely to sustain. For Escorts, growth is being driven mainly by the European market, while the company has also successfully initiated exports to Mexico, a new market, with volumes expected to rise from initial dispatches.
Future Outlook and Regulatory Boost
Looking ahead to 2026, the industry is projected to maintain a stable export growth rate of 5% to 10%. A potential regulatory change could provide an additional tailwind. Poonam Upadhyay pointed out that the potential rollout of TREM-V emission norms from April 1, 2026, if implemented, could significantly boost export prospects. This is particularly relevant for advanced markets like the United States and Europe, where stricter emission standards are a key purchase criterion.
This export recovery comes even as the domestic market continues to be the primary volume driver for the Indian tractor industry. The simultaneous strength in both domestic and international segments paints an optimistic picture for the agricultural machinery sector, signalling improving global demand and a more stable economic outlook in key importing nations.
