India has the potential to become a leading global hub for construction equipment manufacturing and technology if the industry increases its focus on technology, research and development (R&D), and localisation, Union Minister H D Kumaraswamy said.
Speaking at the Indian Construction Equipment Manufacturers’ Association (ICEMA) Annual Session 2026 in New Delhi, Kumaraswamy highlighted the government’s proposed Scheme for Enhancement of Construction and Infrastructure Equipment. The initiative is aimed at promoting domestic production of critical equipment and components, strengthening supply chains and reducing dependence on imports.
India is currently the world’s third-largest construction equipment market. The sector was valued at around $10 billion in FY25 and is projected to reach approximately $14.76 billion by 2030. However, the industry continues to face significant import dependence for certain high-value components.
The minister called for closer cooperation between the government and industry to develop advanced, competitive equipment for both domestic and international markets.
Industry leaders also pointed to rising infrastructure investment and mining-sector reforms as major growth drivers. Although equipment sales declined around 2% in FY26 amid slower domestic demand, exports grew by 32%, indicating stronger global competitiveness.
ICEMA has set a target of achieving $3 billion in construction equipment exports by 2030. Greater localisation, technological innovation and stronger domestic supply chains are expected to play a key role in achieving this goal.
