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India tractors demand to grow 10-12pct in FY19 - ICRA

Auto News - Published on Fri, 28 Dec 2018

Image Source: Devdiscourse
Economic Times reported that credit ratings company, ICRA in its year end outlook said that tractor industry is expected to continue its double-digit growth, at 10-12 per cent despite somewhat weak and uneven monsoon precipitation impacting the kharif crop. According to the report, a major deficit in the post monsoon rainfall has led to a weakening of the reservoir levels across regions and could impact the rabi sowing levels.

However, the government’s thrust on rural spending, infrastructure creation and irrigation spending is expected to provide support to rural incomes over the short to medium term.

The tractor industry has maintained a Y-o-Y growth of 14.7 per cent during April to October 2018. With the help of the Union Government and its initiatives towards enhancing farmers’ incomes like insurance coverage, the MSP hikes for the current kharif season have been better than previous years.

The tractors industry has registered a strong volume growth over last three years and ICRA expects a CAGR of ~16 per cent over the period FY2016-FY2019.

According to ICRA, growth is however likely to moderate in FY2020 (growth of 4-5 per cent). Over the long term, it is expected that the industry will maintain a CAGR of 8 to 9%, with the long-term industry drivers remaining intact.

Source :

Posted By : Joykumar Irom on Fri, 28 Dec 2018
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