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Economy News, Latest Economic News Today | The HinduBusinessLine

GE, HAL clinch tech deal on joint jet engine plan India rejects USTR allegations, seeks termination of Section 301 probe Indian automobile sales record highest-ever sales in FY26, first time after FY19: SIAM Madhya Pradesh CM says basmati rice from the State is exported to 47 nations 63 Moons’ cybersecurity arm pilots GPS-spoofing solution at Indian airports Highways ministry notifies amendment to streamline fee for overloaded vehicles on NHs Global aviation crisis deepens as fuel shortage, Iran conflict hit airlines TRI launches agri-voltaic project to help farmers earn double income Hotel industry to hit $31 billion in 2029; listed hotel firms set to add 70k rooms by 2030: CBRE Temperatures may trend up over North-West, Central India until weekend Reduction in airport tariff credit neutral, minimal impact on revenue: Ind-Ra Global coffee prices rise as fertiliser costs and West Asia tensions threaten supply Bluspring Enterprises to acquire LSG Sky Chefs India, enters aviation catering sector China says policy to improve relations with India remains unchanged amid Arunachal naming row Research firms divided over impact of below normal monsoon on food inflation Unnat Krishi Mahotsav concludes, farmers to emerge as energy, fuel & hydrogen providers, says Gadkari Airlines may get ₹5,000 crore credit support under proposed ECLGS variant How kashmir’s breakthrough is making Gucchi mushroom farming possible Centre not taking away State’s power on bonus for agri produces, says FM Sitharaman Carriers cut flights on cost pressures, uncertain demand GE Aerospace scales AI from pilots to production; India anchors global capability West Asia crisis may push India’s current account deficit to 2% of GDP: Crisil Tax Dept to resume Tiger Global reassessment, says GAAR relief won’t alter SC ruling Ceasefire talks fail to restore vessel movement in Strait of Hormuz, fate of 599 ships remain inconclusive DMRC launches mid-life refurbishment of Blue Line trains to enhance safety and passenger experience Retail inflation likely rose 3.5-4% in March India-UK free trade pact may come into force from second week of May: Official 'West Asia war a good opportunity for energy reforms, lower costs for industry' India’s marine exports surge to ₹62,408 crore in 2024-25, Govt sets ₹1 lakh crore target PM Modi to inaugurate Dehradun-Delhi Expressway on April 14 India’s economic growth journey huge opportunity for international partners: Kwatra From diesel to daylight: How government solar schemes are powering India’s farmers The next energy leap: Replicating ethanol’s success in diesel Delhi EV Policy: Electric 3-Wheelers Only by 2027, 2-Wheelers by 2028 Windfall levy on export bound diesel, ATF raised India-flagged LPG tanker Jag Vikram crosses Strait of Hormuz after US-Iran ceasefire Muted pricing power, rising costs to curb benefits of demand in cement sector: HDFC Securities Central Railway to run four special local trains for Ambedkar Jayanti Cotton Association revises output estimates for 2025-26 up at 324 lakh bales of 170 kg each Agtech marketing in the age of regional content and creator communities Rajnath Singh, Nitin Gadkari to join 3-day agri event at Shivraj’s home turf, inaugurated today How agripreneurship will drive improved rural livelihoods in India World’s largest tur producer, yet an importer: A self-sufficiency puzzle unfolding on ground Ethanol in diesel generators: India’s next practical step towards energy security How sustainable sourcing can unlock value in India’s agri-value chains West Asia Crisis: Induction cooking may consume 13-27 GW power Govt defers power plant maintenance for three months; ready for summer demand Tractor sales cross 10 lakh mark in FY26 on strong rural demand, GST cut India to continue buying Russian crude oil India’s textile and garments exports to the US declined 28.7% in February 2026 Why India’s ₹5 pack won’t disappear, but getting smaller West Asia conflict: LPG usage at 21-month low in March E-way bill generation surged all time high of over 14 crore in March Cotton prices firm up tracking global prices Corn prices poised to fall on Iran-US ceasefire pact Air India at critical stage of transformation: Tata Sons Chairman FYL91 commences new flights to Hyderabad, Rajahmundry and Vijayawada Telangana’s GST revenue up 15% in last 3 months ASMS launches agri-commerce network AYOU in Hyderabad Ladakh turns to apricot blossoms to stretch short tourism season Govt proposes overhaul of company incorporation rules to cut paperwork, enable risk-based checks HAL delivers 4 helicopters to Coast Guard Charter services operators urge review of ATF pricing Structural gaps affect growth of India’s high-value horticulture sector: Report Rubio set to visit India in May to discuss trade, tariffs, defence, Quad DGFT rolls out procedure for allocation of calcined coke Qatar vows to remain reliable energy supplier to India amid West Asia tensions Gadkari bats for 100% land acquisition before approving NH projects India must rethink West Asia energy reliance after biggest shock in decades, says ONGC chief Sumeet SSG partners Pinnacle Industries to strengthen Maharashtra’s EMS fleet Consumer durables growth muted as demand slows, margins shrink: HDFC Securities March 2026 was the fourth-warmest month on record, says European weather agency India relaxes rice exports norms to some European countries Unseasonal rains damage rabi crops on 2.49 lakh ha, wheat most affected: Agri Minister ADB projects 6.9% growth rate for current fiscal, 70 bps lower than FY26 India-UK FTA likely by May 1; 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The missing middle of Indian agriculture: Why small-farm mechanisation is the next big reform
By Ravindra Agrawal · 2026-05-30 · via Economy News, Latest Economic News Today | The HinduBusinessLine

Every few months, India’s agriculture debate circles back to the same pressure points: minimum support prices, loan waivers, subsidies and agri-tech funding. These conversations matter. But they consume so much oxygen that a quieter, structural gap rarely gets the attention it deserves. The gap is not at the extremes. It’s in the middle.

Most Indian farmers are not waiting for a smarter app or a combine harvester. They are waiting for something far more basic: a compact, affordable machine that fits their land, their crop and their budget.

The numbers that tell the real story

India is, at its core, a smallholder farming country. According to the Agriculture Census of 2015–16, the average landholding is just 1.06 hectares, with nearly 86 percent of holdings classified as small and marginal — below two hectares. Many are further fragmented by family partitions that never make it into official records.

Against this reality, mechanisation levels tell a sobering story. Overall, India averages around 45 percent mechanisation dropping to just 33 percent for weeding and 34 percent for harvesting. Europe and North America exceed 90 percent. Farm power availability stands at 2.48 kW per hectare, well below the desired benchmark of 5 kW. India is operating at less than half the farm power capacity that modern agriculture requires.

Falling back on manual labour is no longer viable either. The PLFS data show a steady decline in agricultural workforce share from 46.5 percent in 2020–21 to 45.5 percent in 2021–22. Labour is costlier, scarcer and less reliable at peak seasons. The old model of going big or going manual is quietly becoming obsolete.

The missing middle no one talks about

What’s needed is not a breakthrough innovation. Mini tillers, power weeders and compact harvesting machines already exist. What’s missing is the scale of awareness, distribution and financing to get them to the farmers who need them most.

Across diverse agricultural regions, one pattern is consistently clear: when the right equipment becomes accessible, adoption follows quickly. Demand is rarely the constraint. Access is.

For marginal farmers, the biggest hurdle is affordability. Institutional credit is overwhelmingly skewed towards crop loans. Small-ticket mechanisation loans barely register. Land mortgage requirements exclude lessee farmers entirely. The result is a trap farmers cannot afford to mechanise, so productivity stagnates, so they cannot accumulate the resources to eventually do so. Leasing models, group ownership, and pay-as-you-use systems linked to cooperatives or self-help groups could break this cycle. The ideas exist; the push hasn’t been strong enough.

Beyond productivity

Mechanisation’s impact runs deeper than output per acre. When a farmer gets timely access to the right tool, it changes decisions about what to plant, when to harvest, how much risk to take. A gender dimension rarely gets discussed: a disproportionate share of physically demanding farm work falls on women. Smaller, lighter powered machines reduce this burden without waiting for sweeping social change.

Where policy has gone wrong

India’s mechanisation policy has been structurally skewed toward tractors and large harvesters suited to expansive holdings not to the fragmented plots that define Indian farming. Custom hiring centres, positioned as the solution, have had limited success because they predominantly deploy machines too large for small landholdings. Access was theoretically created. Meaningful adoption did not follow.

The pivot needed incentives for compact equipment, support for local small-machine manufacturing, and financing redesigned for sub-two-hectare holdings has not yet materialised at scale.

India’s agricultural transformation will not arrive through bigger machines or broader slogans. It will come by closing the gap in the middle quietly, practically, and at scale.

The author is Chairman, KisanKraft

Published on May 30, 2026