The Ministry of Agriculture & Farmers Welfare detailed its comprehensive farm mechanization policy framework through a written reply in Lok Sabha. The central initiative is the Sub-Mission on Agricultural Mechanization (SMAM) under Rashtriya Krishi Vikas Yojana, which provides financial assistance of 40-50% of machine cost to farmers for purchasing agricultural machinery and equipment. The scheme specifically supports establishment of Custom Hiring Centers (CHCs) with 40% financial assistance for projects up to ₹250 lakhs and Farm Machinery Banks (FMBs) with 80% assistance for projects up to ₹30 lakhs, increasing to 95% for North Eastern States.
The policy encourages adoption of modern farm machinery including precision agriculture tools, drones, advanced mechanization technologies, and women-friendly farm implements. SMAM also supports testing, certification, capacity building, demonstrations, and training for advanced technology adoption. Additionally, the integrated Crop Residue Management Scheme operates in Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, and NCT of Delhi with a 60:40 Centre-State funding pattern to provide subsidized machinery and reduce stubble burning.
Horticulture mechanization is promoted under Mission for Integrated Development of Horticulture (MIDH) for procurement of power-operated machines and plant protection equipment. The Agriculture Infrastructure Fund provides interest subvention, credit guarantee coverage, and medium to long-term debt financing for eligible infrastructure projects like CHCs and FMBs. Research and development is conducted through Indian Council of Agricultural Research (ICAR) with seven institutes, six AICRPs with 105 centres, two network projects, and four consortia research platforms.
The government permits 100% Foreign Direct Investment under automatic route in agricultural machinery manufacturing to encourage global OEMs to establish domestic production units. Support is provided to Agri Startups through incubation, innovation challenges, and funding under RKVY-RAFTAAR programme. Private-sector-led mechanization service delivery through CHCs and machinery rental platforms is promoted, along with simplified testing and certification procedures for faster market access. Currently, no specific proposal exists for exclusive collaborative partnerships with South Korea or other technologically advanced countries, though international cooperation occurs through existing bilateral and multilateral mechanisms for collaborative research, technology transfer, and capacity building.