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India is aiming to become the world's second-largest construction equipment market by 2030, up from its current third-place position, with sales expected to nearly double to 250,000 units, the Indian Construction Equipment Manufacturers Association (ICEMA) said on Thursday. The United States and China currently hold the top two positions globally.
The industry sold 136,995 units in financial year 2026, though domestic sales declined by about 7% due to election-related disruptions, higher costs from Stage 5 emission norms, and supply chain issues linked to the Red Sea crisis. Exports, however, grew more than 30%, limiting the sector's overall decline to around 2%.
ICEMA President Deepak Shetty said demand showed signs of recovery in the fourth quarter of the fiscal year, supported by increased road project awards and sustained government spending on infrastructure. The association forecasts a 7% growth in domestic sales and at least 20% export growth in the current financial year.
Exports now reach over 125 countries, including in Europe, aided by India's adoption of Stage 5 emission standards and free trade agreements with nations like the UAE and Australia. ICEMA emphasized that greater localisation of high-tech components, especially for excavators, is critical to boosting global competitiveness.
The association called for targeted government incentives to attract investment and accelerate supply chain migration to India, with officials expected to present recommendations to policymakers in the coming weeks.