India is an agrarian economy, with over 50% of the population dependent on agriculture for their livelihood. As of 2019, agriculture and its allied sector accounted for almost 16% of India’s gross domestic product (GDP). The performance of this sector drives the prices and market demand for essential commodities. The accessibility and quality of agricultural machinery positively impacts productivity and output of the farming sector. Furthermore, the Indian machinery market is expected to introduce automation in farm equipment and increase application of innovative technology like Internet of Things (IoT) and Big Data to make agriculture a profitable profession for farmers.
Previously, Indian agriculture depended on equipment which were mainly exported from other countries. The government has now announced the tagline ‘Vocal for local’ for supporting the home-grown Indian brands to produce those equipment in India and eliminate unnecessary imports and provide jobs to lakhs of people.
The adoption of the sharing economy model and tech-driven start-ups is expected to revolutionize the agriculture machinery market in India. Here is how local manufacturing will play a vital role in building India’s economy:
Develop Job Opportunity
One of the main benefits of local manufacturing of agricultural equipment is by providing job opportunities for citizens of India. It will target the young generation of the country as its prime beneficiary. The investments in agricultural sector will encourage the young entrepreneurs to come forth with their innovative ideas without worrying about the source of speculation.
Ameliorate the Vicinity
In order to manufacture in India, the industry requires a promising location to set up machinery as well as factories. To fulfil this requirement, not only the areas were chosen would be improved but also the neighbouring locations will be highly benefited. For a developing nation like ours these kind of initiative is extremely crucial. It will benefit the local labourers and uplift their financial status.
Due to the manufacturing of products in India, economic growth is inevitable, which will not only boost the trade sector but also will increase the GDP of Indian economy. The agriculture sector will flourish with the setting up of new factories and various investments being done in Indian manufacturing sectors the flow of income will be humongous.
Fortify the Rupee
The emergence of the manufacturing industries would automatically convert India into a hub for the fabrication of various agricultural products; as a result, there would be a grand collection of the FDI, which in-turn would strengthen the rupee against the domination of the American dollar.
Flow of Capital
With the introduction of make in India, the capital will not only remain in India, but also the foreign currency will be provided to the nation as well. In a nutshell, India will not spend on foreign countries, but the foreign countries will spend in India in the form of investments and wages.
Innovation in farm machinery sector will drive the next phase of agricultural growth in the country. The Government of India has been encouraging mechanisation and its manufacturing through different policy interventions. The technologies that have evolved in the farm machinery sector in last few years have enormous potential to realise the vision of ‘Make in India’ initiative which promotes innovation and investment. Padgilwar Corporation is one such agricultural equipment manufacturer providing ‘Made in India’ equipment to farmers across India and marking a small change to the agri-equipment industry boosting the economy of India. Get in touch with us for latest equipment related to farm automation and mechanisation.