Indian tractor manufacturers have expanded their global reach to 162 countries by aligning domestic emission standards with international norms, according to a study by the International Council on Clean Transportation (ICCT), released at the India Clean Transportation Summit.
The research, analyzing 16 years of trade data from 2008-09 to 2024-25, demonstrates how stricter emission standards under India’s Tractor and Construction Equipment Emission Stage IV (TREM IV) regulations have enabled manufacturers to penetrate European and Latin American markets while maintaining their position in the United States despite tariff barriers.
The study reveals that India’s tractor exports to the European Union grew from $38 million in 2008-09 to $181 million in 2024-25, representing an 11% compound annual growth rate. Belgium emerged as a significant market, importing $28 million worth of 75-130 kW tractors in 2024-25 compared to virtually zero two years earlier. Medium-category tractor exports to Belgium increased 200 times in a single year following TREM IV implementation.
Brazilian markets showed the most dramatic growth trajectory, with Indian tractor exports surging from $4.5 million in 2017-18 to $88 million in 2024-25, achieving a 65% compound annual growth rate. This expansion occurred when Brazil introduced its MAR-I emission rules, for which Indian tractors were already compliant due to domestic standards.
The United States remains India’s largest single export market, accounting for 21% of total tractor exports in 2024-25. While overall shipments to the US declined 40% in 2023-24 and an additional 10% in 2024-25, exports in small (under 18 kW) and large (75-130 kW) categories grew due to alignment with US Tier 4f norms. The 37-75 kW segment, where standards diverge, experienced reduced market share.
Emerging markets in Asia and Africa have also expanded their imports of Indian tractors. Bangladesh recorded 11% annual growth over the past decade, while Thailand achieved 16% compound annual growth driven by demand for mid-sized tractors. South Africa maintained steady 13% compound annual growth, particularly in the 37-75 kW range, with Mexico emerging as a new destination for Indian tractors.
The market context has been further shaped by India’s recent reduction in Goods and Services Tax (GST) on tractors and farm equipment, which the ICCT notes could enhance rural affordability and global competitiveness alongside emission reforms.
India’s upcoming TREM V standards, scheduled for enforcement in April 2026, are expected to harmonize Indian emission norms with EU standards while exceeding US requirements. The transition represents a progression from Euro IV to Euro VI equivalent standards in India’s transport sector.
“India’s leap from Euro IV to Euro VI shows policymakers’ strong commitment to cleaner transport. With TREM V enforcement starting in April 2026, Indian emission standards will be in harmony with those in the EU and more stringent than U.S. standards. Applying similar ambition to agricultural tractors can modernize domestic fleets and open new opportunities for India in the global export market,” said Amit Bhatt, India Managing Director, ICCT.
“Cleaner, next-generation tractors can power India’s rural growth while opening doors worldwide. Stricter standards are not a burden—they’re a bridge to global trade,” said Aravind Harikumar, Author and Researcher, ICCT.
The study indicates that alignment with international emission standards has become a critical factor in market access, with Indian manufacturers successfully leveraging regulatory compliance to overcome trade barriers and expand their global footprint across developed and emerging markets.