1. Rome 30-31 May 2008 Dr Amit Mitra Secretary General Federation of Indian Chambers of Commerce and Industry (FICCI)

2. US $ 1 Trillion Economy INDIA - Strong Macro Economic Fundamentals Average Growth Rate (%)

3. Improving Fiscal Situation INDIA - Strong Macro Economic Fundamentals Fiscal Deficit

4. FDI Inflows on the Rise [US$ Million] Foreign Direct Investment (FDI) INDIA - Strong Macro Economic Fundamentals

5. Rapidly Increasing Global Trade [US$ Billion] INDIA - Strong Macro Economic Fundamentals

6. World’s Fourth Largest Foreign Exchange Reserves US $ 313 Billion as on April 25, 2008 Forex Reserves

7. Agriculture in India Contributes 18.5% to the National GDP Provides Employment to Nearly 50% Workforce or 70% of Population Second Largest Arable Land in the World. Highest Arable Land to Land Size Ratio Largest Irrigated Land Network Favorable & Diverse Agro-climatic Conditions for a variety of crops INDIA - Agriculture Milk Largest Producer 91 Mn T F & V #2 in the world 129 Mn T Food Grains #2 in the world (218 Mn T) Sugarcane # 2 in the world (245 Mn T) Cattle / buffaloes Largest in the world 283 million Fisheries Marine: 2.7 Mn T Inland : 3.1 Mn T Tea Largest Producer (0.85 Mn T) Goat & Sheep 182 million

8. WHEAT RICE INDIA - Agriculture Dominating Crops Dominating Crops

9. Food Grains Production (Million Tonnes) INDIA - Agriculture RICEWHEATCOARSE CEREALSPULSES 2007-08 figures pertain to III Advanced Estimates TOTAL FOODGRAIN

10. Commercial Crops Production (Million Tonnes) INDIA - Agriculture OILSEEDSCOTTONJUTE & MESTASUGARCANE 2007-08 figures pertain to III Advanced Estimates Cotton – Million bales of 170 kg eachJute & Mesta – Million bales of 180 kg each

11. Source: NSSO, 2005 Total = 68% (207 M) Total = 60% (238 M) Food grain production (Mt) : 129 210 209 Acreage (M ha) : 125 123 122 Labor/ area : 1.6 1.9 2.0 Tractor Pop. (M) : 0.7 2.5 3.1 Total = 52% (250 M) Need for Mechanization INDIA – Agriculture Machinery Sector Even though Agriculture still Supports the Majority of Indian Population, Yet Non-farm activities in rural areas are witnessing a rise in entrepreneurship and employment. As a result, number of people involved in agriculture is declining over the years. Crop Diversification Migration To Achieve Higher Productivity Monsoon Dependent (less Time lag for Manual Operations)

12. Source: Indiaagristat.com, Zinnov Research, 2007, Vision 2020 India, John Derre Percentage share of Power usage in Indian agricultural sector Total Power Consumption (kW/ha) Changing Focus on Agri-mechanization - Automation INDIA – Agriculture Machinery Sector

13. Comparison of Mechanization with Other Countries, 2003 Sl. No. Country Farm Power (kW/Ha) No. of Tractors per 1000 Ha. No. of Combine Harvesters per 1000 Ha. 1.India1.3615.750.026 2.Japan8.75461.22236.98 3.U.K.2.5088.348.30 4.France2.6568.504.93 5.Italy3.01211.084.71 6.Germany2.3579.81711.41 7.Argentina--10.741.79 8.Brazil--13.660.915 9.China--6.982.53 10Pakistan--16.470.08 11Egypt--30.700.79 Source: FAO Yearbook 2003

14. Indian Farm Equipment Market is expected to grow at a CAGR of ~5% Indian Agriculture Farm Equipment Market is now widely exposed to International Trade Favourable Factors: Monsoon Government Declared Support Prices for Crops Supportive Credit Policy of Banks INDIA – Agriculture Machinery Sector

15. Usage Trends of Major Farm Equipment INDIA – Agriculture Machinery Sector

16. Use of Tractors has witnessed an increase of more than 78% since 1994 There are nearly 13500 tractors per million hectares at present in India Tractors

17. Combines Migration - Rabi and Kharif Wheat- From Punjab & Haryana to MP and Maharashtra (till end of March) and then to Haryana and UP (till 10 th April).Return back to Punjab (by 15 Apr)

18. Combines Migration - Rabi and Kharif Rice & Soyabean-From Punjab & Haryana to MP and Maharashtra for Soyabean(till Oct 15) and then to Haryana and UP for Rice (till Oct end).Return back to Punjab (by 1 st week of Nov)

19. Future Requirements of Farm Equipments INDIA – Agriculture Machinery Sector Equipment for Seed Bed Preparation Roto Tillage Strip Till Drill Zero Till Drill Irrigation Equipments Sprinkler Irrigation System Drip Irrigation System Surge Flow Irrigation Plant Protection Equipments Power Weeder Plastic Mulching Electro Static Spraying Orchard Sprayer Pneumatic Precision Planter Sugarcane Sett Cutter Planter Vegetable Transplanter Potato Planter & Rice Transplanter Harvesting & Threshing Sowing and Planting Strip Harvestor cum Reaper Windrower Mechanical Cotton Picker Grain Combine Harvestor High Capacity Multicrop Threshor

20. INDIA – Agriculture Machinery Sector Agriculture Machinery Trade (Million US$) EXPORTSIMPORTS

21. Requirement for Farm Mechanization Farm Power Requirement by 2020: 2KW/Ha Removal of Regional Disparities Infrastructural & Institutional Framework Adequate Engineering Infrastructure at Implementation Levels Effective Training and Extension Service Repair & Maintenance Facilities Machinery Banks for Custom Hiring Services Credit at Simpler Terms Appropriate Farm Machines & Equipments For Small and Marginal Land Holdings Crop Specific & Quality Machines For Hill Agriculture Gender Specific Policy Mandate

22. Training Establishment of Four Farm Machinery and Technology Training Institute (FMTTI) Demonstration Large Scale Demonstration of Equipment at Farmers Field Incentives for Purchase of Equipment Subsidy Through MMA, NFSM, NHM and Similar Other Schemes Available to all Categories of Farmers Incentives for establishment of Machinery Banks at Block Levels for Custom Hiring Services Identification of Machines Hill Agriculture Gender frienfdly Tools and Equipments Crop Specific Package of Machines Policy Initiatives by the Government of India to Promote Farm Mechanization

23. Manufacturing Sector De-reservation of Manufacturing of Agricultural Machines from Small Scale Sector Training on Manufacturing Technologies Introduced Quality of Machines Minimum Performance Standards for Tractors, Power Tillers & Combine Harvesters Framed Standard Specifications for All Machines Equipment Promotion Through Subsidy: Testing by FMTTI or BIS certification is mandatory Credit NABARD Refinance available & Financing Norms Simplified Agro Processing Sector Scheme on Post Harvest Technology Technologies Developed by ICAR / CSIR Promoted Policy Initiatives by the Government of India to Promote Farm Mechanization

24. Rome 30-31 May 2008