March 6, Mumbai For the third consecutive month, Mahindra & Mahindra’s tractor sales increased by double digits in February, a result of the agricultural sector’s explosive expansion during the current fiscal year.
Hemant Sikka, president of M&M’s Farm Equipment Sector, told a TV business news station that the firm anticipates the strong performance to continue until the last quarter of 2024–25 (FY25), after a 19% rise in sales in February.
“The kharif crop was very strong this year on the back of a good monsoon, so there has been a lot of buoyancy in the farm sector,” he added. Additionally, this has increased the water level in the nation’s reservoirs to a 10-year level, which will benefit the winter-planted rabi crop.
He emphasized how the government has helped the agricultural industry by raising the minimum support price (MSP) for important crops, which raises farmers’ incomes. Additionally, farmers now have more money since the rate of inflation has decreased. He went on to say that all of these elements are to blame for the high demand for tractors.
According to a Bank of Baroda report released on Wednesday, the GDP growth is projected to be 6.5% for the fiscal year 2024–2025 due to the strong growth in the agriculture sector, which has emerged as a bright spot, recording a robust growth of 5.6% in Q3 compared with a 1.5% increase in the same quarter last year.
As inflation has decreased, the research also anticipates that the RBI would further reduce key rates to spur economic development.
It notes that the repo rate was unanimously cut by 25 basis points from 6.5% to 6.25% by the RBI’s monetary policy committee. The neutral position was maintained. As long as inflation stays within the RBI’s planned range, the governor of the RBI said that a “less restrictive” monetary policy is required to promote growth. The central bank anticipates that growth will rise from 6.4% in FY25 to 6.7% in FY26. It is anticipated that inflation would decrease from 4.8% in FY25 to 4.2% in FY26. The CPI is expected to be relatively stable in Q4FY25 (4.4%) and Q1FY26 (4.5%).
