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India's construction equipment industry expects domestic sales volume to grow 7% in the financial year 2026-27, driven by higher government spending on infrastructure, recovery in road construction activity, and increased allocation for rural projects, according to the Indian Construction Equipment Manufacturers Association (ICEMA). The industry had a weak financial year 2026, with domestic construction equipment sales falling around 7%, while overall industry volumes declined about 2%.
ICEMA President Deepak Shetty attributed the slowdown to several factors, including state elections, slower execution of roads and highways projects, and the transition to stricter Stage 5 emission norms, which increased equipment prices.
The industry expects growth this year to be supported by the government's Rs 12.2 lakh crore infrastructure allocation, higher spending on rural roads, railways, mining, and urban infrastructure projects.
The industry also expects exports to remain strong as Indian-made machines gain wider acceptance overseas, with equipment makers benefiting from the shift to Stage 5 emission-compliant products. The court will resume hearing on the industry's performance in the next quarter.