India’s construction equipment industry has achieved a significant milestone, with sales rising by 26% year-on-year to reach 135,650 units in the fiscal year 2023–24, up from 107,779 units in FY23. This robust growth underscores the sector’s pivotal role in supporting the nation’s infrastructure development and economic expansion.
According to the Indian Construction Equipment Manufacturers’ Association (ICEMA), the surge in sales is attributed to a combination of factors:
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Government’s Infrastructure Initiatives: The government’s focus on infrastructure development, including increased budgetary allocations and the implementation of projects under the National Infrastructure Pipeline, has spurred demand across all major construction equipment segments.
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Pre-Election Project Acceleration: The pre-election period saw a ramp-up in the execution of infrastructure projects, leading to a surge in equipment requirements.
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Export Growth: Exports of construction equipment have seen a remarkable increase of 49%, reflecting India’s growing presence in the global market.
Segment-Wise Performance Highlights:
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Earthmoving Equipment: This segment remains the largest, accounting for approximately 70% of total sales. Sales increased to 93,531 units, driven by a 55% rise in backhoe loaders and a 35% increase in crawler excavators.
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Material Handling Equipment: Including pick-and-carry cranes and telehandlers, this category recorded a 61% growth, now comprising 14% of total sales, up from 9% in FY23.
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Concrete Equipment: Sales in this segment, encompassing concrete mixers, batching plants, and pumps, grew by 19% year-on-year.
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Road Construction Equipment: After a decline in FY23, this segment rebounded with a 40% increase in sales, totaling 6,571 units, driven by intensified highway construction activities.
Industry Outlook:
ICEMA anticipates continued growth in the construction equipment sector, projecting a 15–20% increase in sales for FY25. The association emphasizes the need for sustained government support, including policy reforms and infrastructure investments, to maintain this upward trajectory.
The impressive performance of India’s construction equipment industry not only highlights the sector’s resilience but also its critical contribution to the nation’s infrastructure development and economic progress.
