India is preparing to introduce a new bill in the upcoming parliamentary session, targeting a significant upgrade of the domestic construction equipment (CE) sector. The initiative, announced by Union Minister Nitin Gadkari at the Indian Construction Equipment Manufacturers’ Association (ICEMA) Annual Session 2025, aims to reduce the industry’s heavy reliance on imports—especially from China—and bolster its global competitiveness through a structured regulatory framework.
The proposed legislation sets out to establish clear technical and quality standards, ensuring “Made‑in‑India” equipment can better match global benchmarks. In segments like excavators, Chinese imports currently make up around 25% of the Indian market—underscoring the urgency for action.
To further accelerate the sector’s transition to green technology, the bill may include financial incentives—such as a 10% machinery advance for OEMs manufacturing flex-fuel or eco-friendly engines, and interest-free loans for buyers investing in alternative-fuel equipment. Additional government support is expected to address infrastructure bottlenecks: CE equipment for critical sectors like tunnelling and pre-cast construction is currently in short supply, slowing execution of major projects.
Recent data highlights the industry’s modest but steady recovery: CE sales rose 3% in FY25 to 1,40,191 units, and exports grew by 10%. Meanwhile, road infrastructure projects worth ₹2 lakh crore have already been awarded this year, with another ₹5 lakh crore anticipated by year-end—taking the total to ₹7 lakh crore. The long-term goal is to scale this up to ₹10 lakh crore annually.
Moreover, Gadkari emphasized operator safety and productivity by proposing the introduction of mandatory regional certification programs for machinery operators—currently operating heavy CE equipment does not require formal licensing in India.
In summary, the forthcoming bill is poised to be a game-changer for India’s CE industry—setting robust standards, supporting green technologies, minimizing import dependence, plugging gaps in infrastructure requirements, and enhancing skills for safer and more efficient operations.
