Rural demand showed a sharp improvement in 2025-26, with tractor and two-wheeler sales registering strong growth, even as bank credit to the agriculture and allied sector continued to expand, the government informed the Lok Sabha on Monday.
Replying to an unstarred question by TMC MP Mahua Moitra, Minister of State for Finance Pankaj Chaudhary said credit disbursed to agriculture and allied activities rose from Rs 18.6 lakh crore in 2021-22 to Rs 30 lakh crore in 2025-26, recording a CAGR of 12.7%.
Rural tractor sales increased from 7.7 lakh units in 2021-22 to 10.6 lakh in 2025-26, a CAGR of 8.3%. Two-wheeler sales climbed from 123.7 lakh to 197.3 lakh units over the same period, registering a CAGR of 12.4%.
The momentum strengthened in FY26, with tractor sales rising 23% and two-wheeler sales 10% over the previous year.
The government also cited the RBI’s July 2026 Bulletin, which said domestic demand was supported by a sharp pick-up in rural demand in June 2026, with tractor and two-wheeler sales recording robust growth amid the start of kharif sowing.
