T he government’s recent decision to cut the Goods and Services Tax (GST) rate on tractors to 5% is a timely boost for farmers and manufacturers alike. Lower costs are expected to accelerate mechanisation at home, contributing to a stronger domestic manufacturing base to support exports abroad. Yet the global regulatory landscape for such exports is shifting fast, as increasingly stringent emissions standards come into effect in the world’s leading markets. India faces a defining choice: cling to low-cost competitiveness or pivot boldly towards cleaner, higher-value machines that can command global markets.

Regulatory limits for emissions

Tractors are the backbone of Indian agriculture. They are used to plough, sow, harvest, irrigate, transport produce, and manage crop residue. Their ve

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