Indian Agriculture and Construction Industry
March 29, 2021
|Indian Agriculture and Construction Industry
An intriguing market for Iowa equipment manufacturers
By Vikram Kohli, Managing Director, Team India Global Services Pvt. Ltd.
India is predominantly an agrarian economy with around 58% of livelihood dependency on agriculture. The sector contributes to almost 16% of India’s gross domestic product (GDP). High proportions of agricultural land and diverse agro-climatic conditions have encouraged the growth of the agriculture sector in India.
To boost the agricultural sector, the Indian Government planned to triple the capacity of the food processing sector in India from the current 10% of agriculture produce and has also committed US$936.38 billion as investments for mega food parks in the country. The agriculture sector in India is expected to gain better momentum in the next few years due to increased investment in agricultural infrastructure such as irrigation facilities, warehousing, cold storage, etc.
Farm mechanization in India is in the initial stages, with the mechanization level very low compared to countries where it has reached beyond 90%. Also, India needs to add sustainable mechanization technologies to address the challenges associated with crop residue burning. Furthermore, the Indian agriculture machinery market is expected to increase the application of innovative technology like IoT and Big Data to make agriculture a profitable profession for farmers.
The accessibility and quality of agricultural machinery offered by the Iowa companies will impact positively the productivity and output of the agriculture sector in India.
A well-developed infrastructure is a foundation for growth in any country, paving the way for a better quality of life and a rapid rise in the gross domestic product (GDP) especially for a developing country such as India. Hence, the Construction sector contributes around 9% to the Indian GDP and is considered the second largest employer.
Various factors that contribute to the growth of the construction sector in India are continuous urbanization, rise in the number of infrastructure projects, industrialization, growing population base, etc. Given the country’s ambition to modernize infrastructure and with the support of major Government initiatives such as Housing for all, Smart City Mission, Make in India, Special Economic Zones (SEZs), industrial parks, national infrastructure pipeline, etc. is driving the growth of the sector.
On the other hand, the supply of new, innovative and technologically advanced construction equipment by companies located in Iowa will contribute to improving the Indian construction sector which in turn will increase exports from the US to India. Hence, India’s need for global competitiveness can be met with Iowa’s advanced capabilities in machinery manufacturing.
India is one of the fastest growing major economies in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships.
The Iowa Economic Development Authority works in collaboration with Team India Global Services to provide services to Iowa companies by doing the market research and generating qualified contacts (importers, distributors, partners) as per their products.
If you are interested in learning more about these fee-based services or general information about the India market, please contact Joseph Rude at firstname.lastname@example.org or 515.348.6244.
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