Agricultural mechanization is essential in the agricultural sector, as it contributes to improving the efficiency and effectiveness of the inputs used in crop production, thus also increasing the productivity of crops. This also reduces the monotony associated with various farming operations.

With that in mind, in order to boost agricultural mechanization in the country, in 2014-15 the Government of India introduced a special plan dedicated to the "Sub mission on Agricultural Mechanization (SMAM)". The plan aims to 'reach the unreached' by making agricultural machines accessible and affordable for small and marginal farmers (SMFs) through the establishment of Custom Hiring Centers (CHCs), creating centers for high-tech, high-value agricultural equipment and agricultural machinery banks. The distribution of various subsidized agricultural equipment and machines to individual farmers is also one of the activities included in the scheme. The purchase of agricultural machinery for SMF is not financially viable, therefore the custom contracting institution provides the option to hire machinery for SMF. Raising awareness among stakeholders through demonstration of machine operations and skill development of farmers, youth and others are also components of SMAM. Performance testing and certification of machines at designated test centers located throughout the country ensure that agricultural machinery is qualitative, effective and efficient.

During 2014-15 to 2020-21, a sum of Rs 45,569.3 crore of funds under the program has been released to States and other implementing institutions. So far, more than 1.3 million agricultural machines have been distributed and more than 27,500 personalized contracting institutions have been established. For 2021-22, a budget of Rs 10,500 crore has been allocated for SMAM, which is more than the previous year.

Government of India programs and plans on agricultural mechanization have resulted in a progressive increase in the availability of agricultural energy per unit area for various agricultural operations. The availability of agricultural energy has increased from 2.02 kw / ha in 2016-17 to 2.49 kw / ha in 2018-19. There has been a significant increase in the adoption of agricultural machines over a period of time that has been expressed in terms of cultivated area, crop intensity and agricultural production in the country concerned.