The tractor industry in India is showing cautious optimism for the fiscal year 2027 (FY27) despite concerns over a potentially deficient monsoon that could impact rural sentiments and farm incomes. Following a record performance in FY26, the industry projects single-digit growth for FY27. T R Kesavan, former president of the Tractor & Mechanization Association (TMA), stated that while a deficient monsoon could affect certain regions, the overall impact on tractor demand is expected to be uneven across the country. Improvements in irrigation, crop varieties, and reservoir management have bolstered agricultural resilience. A leading tractor manufacturer echoed this sentiment, noting that current soil moisture levels and higher minimum support prices (MSP) have kept demand steady. However, analysts from Pantomath Capital Advisors caution that an El Niño event could lead to a high-single-digit decline in tractor sales if rainfall remains inadequate. Recent sales data reflects favorable trends, with M&M and Escorts Kubota reporting increases of 22% and 25% in domestic sales, respectively, in the first two months of FY27.