Italy–India Cooperation has a great Potential in the Agricultural Machinery Sector

The development of India’s agricultural economy and the growing demand for technology offer strong prospects for cooperation with Italian manufacturers. 

EIMA Agrimach India - the exhibition dedicated to agricultural mechanization currently taking place in New Delhi was launched in 2009 as a joint initiative between the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Italian Agricultural Machinery Manufacturers Federation (FederUnacoma).

Its purpose is to present new agricultural technologies to Indian operators and to analyze the evolution of demand across the Subcontinent.

According to data from the Italian Trade Agency (ICE), this cooperation has already led to the establishment of Italian production facilities in several Indian regions, as well as the expansion of commercial activities. However, the potential for growth in Italy–India cooperation remains immense.

ICE reports that the sector, which had a total value of 13.7 billion dollars at the end of 2023, is expected to grow significantly over the coming years, reaching 31.6 billion dollars by 2033, with an average annual growth rate of around 9%. This market growth is largely driven by the diversification of machinery types being demanded - not only tractors (which currently account for 86% of the total market), but also a wide range of operating machines and equipment.

According to forecasts by FederUnacoma/ExportPlanning - as highlighted by FederUnacoma’s General Director Simona Rapastella - both imports and exports are expected to grow considerably.

Imports from India to Italy are projected to increase by an average of 8% per year, while Italian exports to India are expected to rise from the current 26.4 million euros (representing a 3.6% share of the Indian market) to over 38 million euros by 2028, reaching a local market share of more than 4%.