India's Biggest Export Destination for Tractors Is the US

The US is the largest export destination for Indian tractors, comprising 21 per cent of exports during 2024–25, according to a latest study on agricultural tractor export patterns and emission standard alignment. Indian tractor exports to the US declined 40 per cent year-on-year in 2023–24 and a further 10 per cent in 2024–25. However, demand for large Indian tractors (75–130 kW) in the US, a segment where Indian and US standards are generally aligned, increased over that period, says a study by the International Council on Clean Transportation (ICCT). Within the 37–75 kW tractor segment where standards are not aligned, India is losing US market share.

16% Tractors Exported to EU

India produces approximately one million agricultural tractors each year, with 15 per cent destined for international markets. Roughly 16 per cent of Indian tractor exports in 2024–25 were directed to the EU. 

Amongst EU Member States, exports to Belgium increased by almost eightfold after India enforced TREM IV standards in January 2023. Belgian exports increased particularly for 75–130 kW tractors, where Indian emission standards were more aligned with EU standards.

As tractors predominantly operate on diesel and have less stringent emission regulations compared to on-road vehicles, their use has a considerable environmental impact. This study assesses agricultural tractor exports from India from 2008–09 to 2024–25 and compares the emission standards in India with the standards at export destinations.

Brazil Market Expands Tenfold

Similarly, Brazilian demand for Indian tractors rose steeply after Brazil enforced MAR-I emission norms in 2017 and 2019. India's tractor exports to Brazil have increased tenfold from 2018–19 and accounted for 8 per cent of the Indian tractor export market in 2024–25.

Markets Without Emission Standards Show Consistent Growth

India's exports to countries with no emission standards for tractors (e.g., Bangladesh, Mexico, South Africa, and Thailand) have been consistent or increasing.