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The agricultural tractors manufactured and used extensively in Indian farms are of 50's & 60's design. Tractor technology, world-wide has undergone vast improvement over the years and a need was felt to offer a tractor with contemporary technology to the Indian market. The paper describes the desirable features for a tractor for Indian Market and specifications outlined from therein for the development of a state-of-art agricultural tractor model OX-45. The methodology adopted for design, development, testing and analysis for major aggregates is also described in brief.