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Phase 1 alone adds 60,000 tractors and 15,000 construction equipment units a year, against existing capacity of 1,70,000 and 10,000.

Tractor demand momentum is cooling from a high base, tempering near-term earnings expectations. Monsoon and rural cash flows are the key variables.

Domestic tractor sales rose 19.8 percent to 13,172 units. Construction equipment volumes grew 49.1 percent in the month. The double-digit run signals firm farm demand into the monsoon.