New Delhi, June 17 -- India's tractor industry is expected to witness a moderation in volume growth to 1-4 per cent in FY2027 after a strong performance in the previous fiscal, as a high base and the possibility of below-normal monsoon rainfall weigh on demand, according to an ICRA sector report.

The report said wholesale tractor volumes remained robust in May 2026, but cautioned that growth could soften in the current fiscal year.

"Following a robust rise of 23.5% YoY in FY2026, wholesale volume growth is likely to soften to 1-4% in FY2027 owing to a high base effect and the IMD's forecast of a below-normal monsoon," ICRA said in its report.

The rating agency noted that wholesale tractor sales recorded strong growth in May.

"Wholesal...