By Harish Chandra Prasad K, CEO, Montra Electric Tractors Division
Agriculture remains the cornerstone of India’s economic and social structure, feeding nearly 42% of the population and contributing approximately 18% to the country’s GDP. Beyond the economy, it sustains livelihoods, ensures food security, and maintains stability in most villages. At the same time, Indian agriculture is at a critical crossroads in the process of mechanization. Mechanization, mainly driven by tractors, has played an important role in increasing productivity, with millions of tractors in operation across the country. However, this growth brings new challenges as the industry’s heavy reliance on diesel-powered machinery increases operating costs and environmental pressures.
According to estimates, the diesel consumed by tractors accounts for about 7.4% of my country’s annual diesel consumption and 60% of the total agricultural oil consumption. Furthermore, their PM2.5 and NOx emissions are likely to increase to 4-5 times their current levels over the next two decades. While internal combustion engine (ICE) tractors have powered rural prosperity for decades, they now conflict with India’s sustainable development goals and net-zero emissions roadmap. As global and national climate commitments continue to gain momentum, the need for cleaner, more cost-effective agricultural alternatives has never been more urgent.
Electric tractors: practical solutions
Electric tractors emerged as the perfect solution, solving several challenges simultaneously. They simultaneously reduce operating costs, minimize emissions and reduce overall reliability in volatile fossil fuel markets. More importantly, they symbolize a tectonic shift from traditional mechanization to smart, sustainable agricultural mobility. This shift is aligned with national priorities under PM e-DRIVE, FAME-III and the National Bioenergy Plan, reinforcing India’s broader net zero emissions commitment by 2070.
Electric tractors are a combination of agricultural productivity and green innovation. The high-torque electric drivetrain delivers instant power, ideal for quiet and powerful plowing, seeding and hauling. Digital integration through IoT dashboards enables real-time monitoring, remote diagnostics and proactive maintenance. Together, these technologies increase agricultural efficiency while reducing the physical stress and fatigue associated with diesel engines.
Field trials by manufacturers have consistently shown higher cost savings per hectare compared to diesel models, mainly due to lower energy and maintenance costs. When powered by decentralized renewable systems such as solar microgrids, electric tractors can not only drive field work, but also help build self-sufficient, low-carbon rural ecosystems, turning villages into clean energy producers rather than just consumers.
Policy Imperative: Closing the Adoption Gap
Despite the promise, initial pricing for electric tractors remains a hurdle. For small and marginal farmers, the upfront costs outweigh the long-term savings. Closing this economic gap will require aggressive policy intervention and financing innovation, as India has achieved with solar energy adoption.
India’s broader EV ecosystem is already benefiting from strong policy support. Extending these benefits to agricultural vehicles through central subsidy schemes and complementary state incentives could significantly reduce the cost of entry. Meanwhile, Department of Agriculture advocacy initiatives are helping farmers understand the lifetime value, reliability and environmental benefits of electric vehicles.
However, financial incentives alone are not enough. To achieve mass adoption, policies must also enable universal adoption through targeted subsidies, low-interest financing and rural charging infrastructure development. Electric mechanization should not be seen as a subsidy to farmers but as a national investment that can increase productivity, enhance energy security and reduce the carbon intensity of India’s entire agricultural value chain.
Looking to the future: from innovation to standardized practice
India’s transition to electric agricultural transportation is steadily gaining traction. Battery technology is improving, charging infrastructure is expanding, and data deployed in the field is helping manufacturers improve performance and durability. Each new season of pilot projects brings more evidence that electrification is possible not just in theory, but in the soil and sweat of everyday agricultural work.
Electric tractors directly contribute to decarbonization and significantly reduce agriculture’s carbon footprint by replacing fossil fuels with clean electricity. Beyond the environmental benefits, the economic logic is compelling: electricity replaces diesel, reduces import bills, stabilizes farmers’ incomes, and saves foreign exchange.
However, broad-based success will depend on a holistic ecosystem approach, including ongoing research and development, strong after-sales support, farmer training and long-term financing models. Over time, as battery costs fall and rural energy systems mature, electric tractors will move from being viewed as innovative products to becoming standard agricultural tools.
Ultimately, the future of Indian agriculture will be determined not by the horsepower of machines, but by the sustainability of energy. Electric tractors offer a unique opportunity to responsibly power the nation’s farmland, ensuring economic growth, productivity and environmental stewardship advance together.
