Exports of farm tractors from India remain steady

Farm tractor sales, a key indicator of rural demand, moderated to 8.2% y/y in July, after declining by 2.4% y/y in May 2021 due to the second COVID-19 wave and recovering sharply thereafter in June, registering a 22.1% y/y increase.

Farm tractor sales, a key indicator of rural demand, moderated to 8.2% y/y in July

In terms of the two key components of farm tractor sales, domestic sales were hit more adversely as compared to exports, declining by 8.0% y/y in May. The latter, on the other hand, grew at a steady pace of above 70% y/y for both May and June, gaining from the low base of 2020. The July moderation signals a return of normalcy in the rural regions, aided by good monsoons and substantial crop sowing.

Source: CEIC

Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q2 2021 report.