Tractor manufacturing in india started in 1961. Tractor industry has grown at a phenomenal pace during last five decades to achieve a record production of over 255,000 units by the year 1997. It has emerged as one of the leading producers of wheel type tractors in the World. This achievement reflects the dynamism of the tractor manufacturers, as also the pragmatic policies adopted by the Government of India to enable it to meet the growing' demand of tractors by the Indian farmers. By the end of 1997, there were about two million tractors and 66,000 power tillers in use on Indian farms. The highest concentration of tractors is in northern India. Punjab, the state with highest yields in both wheat and rice, has reached a saturation level with 82 tractors per 1000 ha1 followed by two neighbouring states, Haryana with 63 tractors per 1000 ha and Uttar Pradesh with 24 tractors per 1000 ha. The predominantly rice growing states with high yields, Tamil Nadu had only 11 tractors per 1000 ha and Andhra Pradesh had only seven tractors per 1000 ha. Sale of tractors continues to be much higher in northern and western states (Uttar Pradesh, Punjab, Madhya Pradesh, Haryana, Rajasthan, Gujrat and Maharashtra) using dry land preparation and growing mainly wheat. The annual sale of power tillers has been only about 10,000 units. Most of the power tillers have been purchased by the farmers in rice growing states, namely, West Bengal, Tamil Nadu, Karnataka, Assam, Kerala and Andhra Pradesh. Easy availability of agricultural credit has contributed significantly towards the growth of the tractor industry.
