© 2025 International Bank for Reconstruction and DevelopmentThe World Bank Group1818 H Street NW Washington DC 20433 DISCLAIMERThis work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect The World Bank does not guarantee the accuracy of the data included in this work. Theboundaries, colors, denominations, and other information shown on any map in this workdo not imply any judgment on the part of The World Bank concerning the legal status of any RIGHTS AND PERMISSIONSThe material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for Any queries on rights and licenses, including subsidiary rights, should be addressed to theOffice of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax:202-522-2422; e-mail: pubrights@worldbank.org. ACKNOWLEDGEMENTSThis document has been supported by the Korea-World Bank Partnership Facility (KWPF), a single-donor trust fund fully funded by the government of South Korea and administered bythe KWPF Program Management Team within the World Bank Group. KWPF supportsprojectsthat identify,implement,and scale sustainable development solutions in The study was led by Meghana Rao Pahlajani from the 2030 Water Resources Group (WRG)of the World Bank Group. The team acknowledges the valuable support of Sajith Abraham,Arvind Kumar, and Chandra Shekar from Mera Tractor in developing this document. Theteam is grateful for the guidance provided by Ajith Radhakrishnan and Yogesh Bandhu Aryafrom WRG, as well as Arshia Gupta, Andrew Goodland, and Vinayak Ghatate from the Foodand Agriculture Global Practice. The team also appreciates the insights shared by allstakeholders consulted during the assessment, listed in the annexure. The assessment was ENHANCING AGRICULTURAL PRODUCTIVITYTHROUGH FARM MECHANIZATION FOR Assessment of farm mechanization rental/sharing modelsand recommendations to enhance mechanization for December 2025 Knowledge PartnerMeraTractor Executive Summary Section A: Introduction •Chapter 1: Background and Scope of the Study•Chapter 2: Landscape for Farm Mechanization in India Section B: Assessment •Chapter 3: Approach and Methodology•Chapter 4: Insights – Internal and External Stakeholders•Chapter 5: Analysis and Assessment for Section C: Inventory Modeling •Chapter 6: Inventory Modeling for farm equipment rental centres Section D: Summar and Conclusion •Chapter 7: Summary from Assessment•Chapter 8: Key Strategic focus areas to strengthen Annexures: Annexure 1: List of Stakeholders consultedAnnexure 2: Case studies for farm equipment inventory estimation List of Figures Figure 1:Land Area Utilization (in Percentage) and PopulationFigure 2:Comparison of Rental Models in UnitsFigure 3:Uttar Pradesh Statewide Profiles of CHCs (in Units and Percentage)Figure 4:Target Vs. Actual CHCs (in Units)Figure 5:Distribution of subsidized and self-funded equipment of CHCs in sample areasFigure 6:Classification of Registered FPOs in UP (Statewide, in Units) List of Tables Table 1:Snapshot of Machinery Hiring ServicesTable 2:Machinery Hiring Schemes — State GovernmentsTable 3:Machinery Hiring Schemes — Private SectorTable 4:Details of crop area coverage and landholdings in assessment districtsTable 5:Effectiveness of Rental Models – Key Parameters EXECUTIVE SUMMARY Agricultureremains the cornerstone ofIndia’sdevelopment trajectory(EconomicSurvey 2023-24)1, with nearly half of thenation’s workforce engaged in this sector.However, the country faces the challenge oflow agricultural productivity, which has beenbrought about by a combination of factors.Theseinclude fragmented land holdings, Farm mechanization in India today faces aparadoxical situation. On the one hand, thehigh cost and shortage of labor in farmoperations are pushing up the requirementfor farm machinery. On the other hand, alargeproportion of fragmented landholdings across the country make individualownershipofagriculturalequipmenteconomicallyunviable,thus posing asignificanthurdleforscalingup Farm mechanization, as the term suggests,refers to the use of farm equipment, tools,and implements that increase agriculturalproductivity and reduce the drudgery ofmanual labor. It has direct benefits such asreduced water consumption, lower fertilizerrequirements, and higher seed germination To address challenges related to use of farmequipment and tools, the Government ofIndia (GoI) launched the Sub Mission onAgriculturalMechanization(SMAM)in2014-154.The initiative took significantmeasures to scale up Custom Hiring Centers(CHCs) besides supporting group ownershipand rental models for farm equipment. Thisapart,stategovernments,privateentrepreneurs, and social enterprises toohavebeenleveragingtechnological Currently, the farm mechanization level inIndiastands at appr