Key Details sentence
India’s farm mechanization strategy is increasingly shifting from individual ownership of machinery towards shared service models, precision agriculture and targeted support that make modern technologies more accessible to small and marginal farmers.
Theme | Key Outcome | Why It Matters |
|---|---|---|
Farm Mechanization | Since 2014–15, ₹9,404.47 crore has supported distribution of 21.61 lakh agricultural machines. | Expands mechanization while improving productivity and reducing dependence on manual labour. |
Shared Mechanization Infrastructure | 27,554 Custom Hiring Centres (CHCs), 25,608 Farm Machinery Banks (FMBs) and 646 Hi-Tech Hubs established. | Makes modern machinery affordable through shared access rather than individual ownership. |
Drone-Based Agriculture | 40,928 Kisan Drone demonstrations conducted across 40,918 hectares with ₹52.5 crore support. | Accelerates adoption of precision agriculture and technology-enabled input management. |
Targeted Financial Support | Subsidies of 40% for general farmers and 50% for SC/ST, small & marginal farmers and North-Eastern beneficiaries, alongside higher institutional support for CHCs and FMBs. | Reduces financial barriers while promoting inclusive mechanization. |
Regional & Gender Inclusion | Enhanced assistance for North-Eastern States and 30% of scheme funds earmarked for women farmers. | Addresses regional disparities and strengthens women’s participation in agricultural modernization. |
State-led Implementation | Implemented under RKVY as a Centrally Sponsored Scheme with differentiated Centre–State funding patterns. | Allows states to adapt mechanization strategies to local agricultural conditions. |
Farm Mechanization Is Shifting from Equipment Ownership to Service Access
Launched in 2014–15 under the Rashtriya Krishi Vikas Yojana (RKVY), the Sub-Mission on Agricultural Mechanization (SMAM) has become India’s principal programme for improving access to modern agricultural machinery across the crop cycle. Since its launch, the scheme has supported over 21.6 lakh agricultural machineswith financial assistance exceeding ₹9,404 crore, while prioritising small and marginal farmers, women, Scheduled Castes, Scheduled Tribes, Farmer Producer Organisations (FPOs) and underserved regions.
Rather than focusing solely on subsidising equipment purchases, SMAM increasingly promotes mechanisms that enable farmers to access machinery as a service, reducing the financial barriers created by fragmented landholdings and high capital costs.
Shared Mechanization Infrastructure Is Expanding Access
A defining feature of the programme is the development of shared mechanization infrastructure through 27,554 Custom Hiring Centres (CHCs), 25,608 Farm Machinery Banks (FMBs) and 646 Hi-Tech Hubs across the country.
These institutions enable farmers to rent expensive machinery when required instead of purchasing it outright, improving equipment utilisation while making advanced technologies affordable for smaller farms. The programme also supports demonstrations, testing, operator training and awareness activities to encourage adoption of modern machinery.
Drones and Precision Agriculture Are Becoming Part of Mainstream Farm Policy
SMAM has increasingly incorporated precision agriculture into India’s mechanization strategy through the promotion of agricultural drones.
Between 2023–24 and 2025–26, 40,928 Kisan Drone demonstrations covering 40,918 hectares were conducted by ICAR institutes, State Agricultural Universities and Krishi Vigyan Kendras. Financial support is provided for drone acquisition, demonstrations and service delivery, encouraging their use for nutrient application, fertiliser distribution and crop protection.
This reflects a broader transition from conventional mechanization towards technology-enabled agriculture that combines automation, digital tools and more efficient input management.
Financial Support Targets Inclusion Rather Than Uniform Subsidies
SMAM adopts differentiated financial support to improve equity in mechanization.
General farmers receive 40% subsidy, while small and marginal farmers, SC/ST farmers and beneficiaries in North-Eastern States receive 50% support through Direct Benefit Transfer. Women farmers benefit through earmarked allocations, while institutional models such as CHCs, SHGs and FPOs receive higher assistance to expand access for communities that may otherwise be unable to invest in farm machinery.
The programme also follows differentiated Centre-State funding patterns, allowing greater support for North-Eastern and Himalayan states while enabling states to adapt mechanization strategies to local agricultural conditions.
Policy Relevance
SMAM reflects a shift in agricultural mechanization policy from individual ownership of farm machinery towards shared service-delivery models, making advanced equipment more accessible to smallholders.
The integration of Kisan Drones signals that mechanization policy is increasingly converging with precision agriculture, digital technologies and data-driven farm management, extending mechanization beyond conventional equipment.
Higher financial support for small and marginal farmers, women, SC/ST communities and North-Eastern States illustrates how mechanization policy is being used to reduce structural inequalities in access to agricultural technology.
The programme demonstrates how institutional infrastructure—including Custom Hiring Centres, Farm Machinery Banks and FPOs—can improve technology diffusion while reducing the capital burden on individual farmers.
Integration with RKVY enables states to tailor mechanization investments to local cropping systems, agro-climatic conditions and farm structures rather than relying on uniform national models.
As agriculture becomes increasingly technology-intensive, the next phase of mechanization will depend not only on expanding machinery access but also on strengthening rural service ecosystems, skilled operators, digital platforms and maintenance networks.
Relevant Question for Policy Stakeholders: As farm mechanization increasingly relies on shared services and precision technologies, how can policy strengthen rural entrepreneurship, maintenance ecosystems and digital service networks to ensure that advanced mechanization remains affordable and sustainable for smallholders?
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