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With Thanks from http://pscipub.com/Journals/Data/JList/Applied%20Science%20Reports/2013/Volume%203/Issue%202/5.pdf Indian tractor industry history Indian Tractor Industry developed in 1945 to 1960 because of the War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid 1940's. In 1947 Central and State Tractor Organizations were set up to develop and promote the supply and use of tractors in agriculture and up to 1960, the demand was met entirely through imports. In 1951 there were 8,500 tractors in use, 20,000 in 1955 and 37,000 by 1960. Local production began with five manufacturers in 1961 producing a total of 880 units per year. Eicher, Gujarat Tractors, TAFE, Escorts, M&M are the major tractor manufacturers. During 1965 this had increased to over 5000 units per year and the total in use had risen to over 52000. In the year 1970 annual production had exceeded 20000 units with over 146000 units working in the country. From 1971 to 1980 six new manufacturers were well established during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. Escorts Ltd began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK. Others were HMT and PTL (SWARAJ) Total production climbed steadily to 33000 in 1975 reaching 71000 by 1980 (Tractor1, 2013). In India tractor industry has played a vital role in the development. Indian tractor industry is very young when compared with world development. Consequently it now becomes a pride in India's automobile industry. U.S.A., U.S.S.R. and only a few Western European countries exceed the current production of tractors in India, but in terms of growth India's growth is unmatched even with countries of long history of tractor manufacturing. The spectacular achievement reflects the maturity and dynamism of tractor manufacturers and also the policies adopted by the government to enable it to effectively meet the demand. The tractor industry in India has made a significant progress in terms of production and capacity as well as indigenization of technology. It is a typical sector where both imported technology and indigenous developed technology have developed towards meeting the overall national requirements. The global scenario on tractors manufacturers certainly in terms of volume seems to be swinging away from the USA, UK and Western and Eastern Europe towards India where growth in the number of producers and the total volume in recent years have been impressive (Jain, 2006). In the long term, the industry growth is expected to continue from a moderate CAGR rate of five percent to seven percent largely due to the continued thrust by the government to increase agricultural GDP. One can expect the domestic industry to stabilize at about 4,00,000 tractors per year.Growth & Market demand India's growth is unmatched even with countries of long history of Tractor manufacturing. The Indian Tractor Industry's spectacular achievement reflects the maturity and dynamism of tractor manufacturers and the various policies adopted by the government to enable it to effectively meet the demand.Many factors influence the tractor demand. Primary demand comes from agricultural growth and the secondary demand comes from allied uses of tractors, primarily haulage. These factors apart, non-agricultural use of tractors (for haulage) continued to increase, benefiting tractor demand. Credit and money availability has always affected tractor industry and mechanization fortunes. Farm mechanization program in India aims to integrate the use of available human and animal farm power with mechanical sources of power for increasing the productivity (Tractor1, 2013). There are currently 14 players in the industry.