US interim trade deal opens door for tractor exports: Escorts Kubota CFO | Economy & Policy News

The interim trade agreement between India and the United States provides a good opportunity to explore export of tractors to America, according to a senior official of agricultural and construction equipment company Escorts Kubota.

The company’s Japanese parent, Kubota Corporation, said it plans to make India its growth engine as part of its mid-term business plan for 2030, identifying operations and projects in the country as one of the key aspects of the strategy.

“We are not exporting to the US at the moment. We believe that with these tariffs coming into force, it will probably give us a good opportunity to look at opening up that market again,” Bharat Madan, whole-time director and chief financial officer of Escorts Kubota Ltd, told PTI.

He was responding to a question on the impact of the interim trade agreement between India and the United States.

“Right now, our parent company (Kubota) exports from Japan, and the US tariffs on) Japan are around 15 percent. So there’s not really a significant gap there (with India’s which is 18 percent), he noted.

“It gives us a good opportunity if we can manufacture tractors in India and look at exports as an option. It will be a very good scenario for the parent company to consider.” As part of its mid-term business plan for 2030, Kubota Corporation said that while aiming to capture high-growth markets, it will leverage India as a global hub for R&D, sourcing and production, improve the cost competitiveness of the entire group and strengthen its supply chain.

On the impact of the India-EU FTA, Madan said customs duties on tractors are already zero and the company does not expect a major impact on the tractor sector.

“We are already exporting to the EU… Indian exports to Europe are already very high today,” he noted.

When asked about the outlook for the domestic market, the tractor industry is expected to benefit from the growth momentum after the reduction in GST rate, which propelled it to a record high in the third quarter, growing at 23 per cent.

In the March quarter, the industry is expected to witness growth of around 30-35 per cent, and this momentum is expected to continue till July-August, after which the high base effect will manifest, Madan noted.

During the quarter ended December 2025, Escorts Kubota had recorded tractor volumes of 36,955 units, up 13.5% from 32,556 units in the corresponding quarter last financial year.