# Machinery and equipment: Follow one offering through the chain Machine tools, construction and mining equipment, tractors, pumps and process plant Source page: https://www.materialinsights.org/industries/machinery/story/ #### Follow one offering through the chain **2** Example story · 6 steps · India ### A Mahindra tractor for an Indian farm Follow a tractor from foundry sand to a farmer's loan. 1 / 6 · Materials and castings #### Iron castings from India's foundry clusters **15.16 Mt**Indian castings output, 2023-24 A tractor's heaviest parts, the engine block, gearbox housing and axle casings, are poured in grey iron at foundries in clusters such as Rajkot, Kolhapur, Ludhiana and Coimbatore. India made about 15.16 million tonnes of castings in 2023-24, second only to China, from roughly 5,000 foundries, about 90% of them small firms. Shafts and gears come from forging shops.^[1](https://foundryinfo-india.org/profile_of_indian.aspx) **Constraint** Grey iron is about 68% of output, melted in coke cupolas or electric induction furnaces, so coke and power prices drive casting costs. [Fe Iron ore](https://www.materialinsights.org/commodities/iron_ore/)[St Steel](https://www.materialinsights.org/commodities/steel/)[Qz Silica sand](https://www.materialinsights.org/commodities/industrial_sand/)[Kc Coking coal](https://www.materialinsights.org/energy/coking_coal/)[Metal products](https://www.materialinsights.org/industries/metal_products/) 2 / 6 · Components and subsystems #### A diesel engine facing tougher rules **15-20%**ICRA price-rise estimate, under 50 HP Most Indian tractor makers build their own diesel engines; specialist engine firms supply some brands. The next hurdle is the TREM V emission standard, which needs exhaust after-treatment such as particulate filters and catalysts. In September 2025 the rating agency ICRA estimated it could raise prices of tractors under 50 HP by 15-20%, more than offsetting that month's GST cut.^[5](https://www.icra.in/Rating/DownloadResearchSpecialCommentReportViewer/6515)^,^[2](https://www.autocarpro.in/analysis/the-million-unit-milestone-fy26-redefines-indias-tractor-market-132056) **Constraint** After-treatment needs platinum-group catalysts and urea fluid; a draft rule covers tractors below 25 HP and above 75 HP from October 2026. [St Steel](https://www.materialinsights.org/commodities/steel/)[Al Aluminium](https://www.materialinsights.org/commodities/aluminum/)[Pt Platinum](https://www.materialinsights.org/commodities/platinum/)[PGM Autocatalysts](https://www.materialinsights.org/chemicals/autocatalysts/)[Ur Urea](https://www.materialinsights.org/chemicals/urea/)[Metal products](https://www.materialinsights.org/industries/metal_products/)[Electrical equipment](https://www.materialinsights.org/industries/electrical_equipment/) 3 / 6 · Production equipment #### Machines that machine the tractor **₹32,000cr**Indian machine-tool consumption, 2024-25 Cylinder bores, gear teeth and axle shafts are cut on CNC machining centres, gear hobbers and grinders. Indian builders supply many general machines, but the most precise are often imported. The makers' association IMTMA put Indian machine-tool production at ₹14,500 crore in 2024-25 against consumption of ₹32,000 crore, so output was under half of demand (calculated).^[3](https://www.imtex.in/assets/show_daily/2026/Day-2/day2-IMTEX2026.pdf) **Constraint** High-end CNC controls, spindles and precision bearings are still largely imported, so currency swings and export controls feed straight into costs. [St Steel](https://www.materialinsights.org/commodities/steel/)[W Tungsten](https://www.materialinsights.org/commodities/tungsten/)[Abr Abrasives](https://www.materialinsights.org/commodities/abrasives/)[Lub Lubricant additives](https://www.materialinsights.org/chemicals/lubricant_additives/)[Electrical equipment](https://www.materialinsights.org/industries/electrical_equipment/)[Software and IT services](https://www.materialinsights.org/industries/software_it/) 4 / 6 · Machinery OEMs #### Assembled by India's tractor leader **43.6%**Mahindra's domestic tractor share, FY26 Mahindra bolts the castings, engine, transmission and hydraulic lift together and paints the tractor red. In 2025-26 it sold 505,930 tractors in India under the Mahindra, Swaraj and Trakstar brands, a record 43.6% share, and exported 20,473 more. It has led the Indian market for 43 consecutive years. Tractors of 41 to 50 horsepower now make up nearly two-thirds of sales.^[4](https://www.mahindra.com/annual-report-FY2026/174/)^,^[2](https://www.autocarpro.in/analysis/the-million-unit-milestone-fy26-redefines-indias-tractor-market-132056) **Constraint** Demand tracks the monsoon and farm incomes: domestic dispatches rose 23.5% in 2025-26 after a good monsoon, and fall sharply in drought years. [St Steel](https://www.materialinsights.org/commodities/steel/)[Rbr Natural rubber](https://www.materialinsights.org/commodities/rubber/)[Pnt Paints and coatings](https://www.materialinsights.org/chemicals/paints_coatings/)[Metal products](https://www.materialinsights.org/industries/metal_products/)[Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/) 5 / 6 · Sales, finance and aftermarket #### Sold through a district-town dealer **10.5 lakh**tractor registrations, FY26 A dealer in a district town sells the tractor, fits implements, registers it and runs a workshop that keeps it going through harvest. Farmers registered 1,050,077 new tractors in 2025-26, up 19% from 882,825, according to the dealers' body FADA. A GST cut from 12% to 5% on 22 September 2025 lowered showroom prices by ₹40,000 to ₹60,000, depending on horsepower.^[6](https://fada.in/images/press-release/169d329fc83770FADA%20releases%20FY%202026%20and%20March%202026%20Vehicle%20Retail%20Data.pdf)^,^[2](https://www.autocarpro.in/analysis/the-million-unit-milestone-fy26-redefines-indias-tractor-market-132056) **Constraint** Sales bunch around sowing seasons and festivals, so dealers must finance stock and spares for months, and tax changes shift buying overnight. [Lub Lubricant additives](https://www.materialinsights.org/chemicals/lubricant_additives/)[St Steel](https://www.materialinsights.org/commodities/steel/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/) 6 / 6 · Sales, finance and aftermarket #### Bought on credit, almost always **95%**tractors bought on credit Roughly 95% of Indian tractors are bought on credit, from banks, cooperative lenders and finance companies such as Mahindra Finance, Shriram Finance and Sundaram Finance, with the tractor itself as collateral and repayments often timed to harvests. The Reserve Bank's 125 basis points of policy rate cuts in 2025 lowered rural borrowing costs and helped lift sales to a record.^[2](https://www.autocarpro.in/analysis/the-million-unit-milestone-fy26-redefines-indias-tractor-market-132056) **Constraint** A bad monsoon or crop-price slump raises defaults quickly; lenders then tighten, and tractor sales can drop within a season. [Finance: banking, insurance, markets](https://www.materialinsights.org/industries/finance/) #### What the chain shows India builds tractors at world scale, but precision machine tools, CNC controls and emission hardware are still largely imported: that is the opening for Indian capital-goods makers. Sources 1. [Profile of the Indian foundry industry](https://foundryinfo-india.org/profile_of_indian.aspx) The Institute of Indian Foundrymen, 2024 2. [The million-unit milestone: FY26 redefines India's tractor market](https://www.autocarpro.in/analysis/the-million-unit-milestone-fy26-redefines-indias-tractor-market-132056) Autocar Professional, 2026 3. [IMTEX 2026 Show Daily, Day 2](https://www.imtex.in/assets/show_daily/2026/Day-2/day2-IMTEX2026.pdf) Indian Machine Tool Manufacturers' Association (IMTMA), 2026 4. [Integrated Annual Report 2025-26: Farm Equipment Sector](https://www.mahindra.com/annual-report-FY2026/174/) Mahindra & Mahindra, 2026 5. [Indian tractor industry: impact of new emission norms likely to outweigh GST rate cut](https://www.icra.in/Rating/DownloadResearchSpecialCommentReportViewer/6515) ICRA, 2025 6. [FADA releases FY 2026 and March 2026 vehicle retail data](https://fada.in/images/press-release/169d329fc83770FADA%20releases%20FY%202026%20and%20March%202026%20Vehicle%20Retail%20Data.pdf) Federation of Automobile Dealers Associations, 2026 ## Other sections - [Overview](https://www.materialinsights.org/industries/machinery/index.md) - [Where ₹100 goes](https://www.materialinsights.org/industries/machinery/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/machinery/price-links/index.md) - [Linked industries](https://www.materialinsights.org/industries/machinery/linked-industries/index.md) - [Value chain](https://www.materialinsights.org/industries/machinery/value-chain/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/machinery/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/machinery/risks/index.md) - [Sources](https://www.materialinsights.org/industries/machinery/sources/index.md)