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Harvesting Growth: GST Cut, Bumper Monsoon Fuel Record Tractor Sales in FY26
A strong monsoon, election-year cash and a surprise tax cut combined to push FY26 wholesale dispatches to an all-time high of 11.6 lakh units, the first time the industry has crossed seven figures.
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Few years in recent memory have brought together as many tailwinds for Indian tractor makers as fiscal 2026. An above-normal monsoon refilled rural cash flows. State governments in poll-bound Maharashtra and Bihar opened the subsidy taps.
An unexpected cut in the Goods and Services Tax on tractors from 12 to 5 percent in late September lowered sticker prices overnight. And as the deadline for stricter TREM 5 emission norms drew closer, dealers and farmers pulled forward purchases they might otherwise have made later. By the close of March, the industry had sold more tractors than ever before.
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