The primary objective of this centrally sponsored scheme is to increase the reach of farm mechanization to small and marginal farmers, particularly in regions where the availability of farm power is low. Under the SMAM scheme, the following financial assistance is provided:Farmers receive 40-50% financial assistance for the direct purchase of agricultural machinery and equipment. Farm Machinery Banks (FMBs) are supported with an 80% subsidy for projects costing up to Rs. The scheme also encourages the adoption of modern farm machinery, including precision agriculture tools, drones, and women-friendly farm implements. 100% FDI and Support for Agri Startups To strengthen the domestic agricultural machinery ecosystem, the government permits 100% Foreign Direct Investment (FDI) under the automatic route in the agricultural machinery manufacturing sector.