Abstract

                        Country witnessed below normal monsoon in few parts especially in south west areas but surprisingly it did not have much impact on tractor sales (domestic). Domestic tractor sales grew at 20% in 2013-14 & are likely to grow at 15% in 2014-15. Increase in Volume sales of tractors in domestic market from 5.26 lacks in 2012-13 to 6.34 lacks in 2013-14 reflects the brighter aspect of this industry in years to come.

Shift from single purpose tool to multipurpose tool for transportation & harvesting,  Narega plan leading to acute shortage of labour in farm sector, demand of the sector for higher mechanization and frequent upward revision of Minimum support price of various crops are few factors contributing & pointing towards a  flourishing industry.

However, a critical analysis of this industry over the years has clearly reflected a paradigm shift in its nature since pre- liberalization. Nature of the industry is again likely to change gradually in coming years. Industry participants must change their strategy to cope up with the challenges in order to survive and grow at a reasonable rate.

Present study is an attempt to critically examine the changing nature of tractor industry in India & outline the possible changes in existing strategy that the industry participants may consider to survive & grow.

Key words:  Multipurpose Tool, Minimum Support Price