New Delhi, May 8: The Indian construction equipment industry has shown resilience in FY 2026, recording a remarkable 31.5% increase in exports despite a decline in domestic sales. This information was revealed in a report released on Friday.
According to the Indian Construction Equipment Manufacturers Association (ICEMA), the growth in exports has helped sustain the sector, even amid slow infrastructure development and project delays.
The report further states that India remains the third-largest construction equipment market globally. The estimated value of this sector was $10 billion in FY 2025, with projections indicating it could reach $14.76 billion by 2030, growing at a compound annual growth rate of 8.3%.
During the fiscal year, total equipment sales fell by nearly 2%, totaling 136,995 units. The association noted that, excluding non-OEM exports, domestic demand saw an annual decline of about 7% across most equipment categories.
ICEMA President and CEO of JCB India Limited, Deepak Shetty, commented, “The slight decline observed in FY 2026 should be viewed in the context of slow infrastructure implementation rather than any structural weakness in the industry.”
He added, “While government capital expenditure allocations remain historically high, delays in project execution, land acquisition challenges, and slow delivery processes have impacted equipment demand throughout the year.”
Shetty emphasized that the increase in exports demonstrates the growing global competitiveness of Indian-manufactured construction equipment. The association remains optimistic about the long-term growth trajectory of the industry, driven by ongoing infrastructure development efforts in India.
The report indicates that delays in land acquisition, reduced project allocations, and funding distribution for programs like the Jal Jeevan Mission have adversely affected domestic demand.
Additionally, delays in contractor payments have reduced liquidity in the infrastructure sector. Given the industry’s high dependence on financing, the implementation of CEVI Stage V emission standards has significantly increased equipment costs.
ICEMA Vice President and Managing Director of Case Construction Equipment India Private Limited, Shalabh Chaturvedi, stated, “India’s infrastructure development narrative remains strong. Timely project execution, rapid ground-level implementation, and better liquidity support for contractors will be crucial in restoring the growth momentum of this sector.”
The association noted that the Indian construction equipment industry remains optimistic about long-term growth prospects, driven by continuous investments in roads, railways, mining, urban infrastructure, housing, and rural development.
A solid export base, a robust domestic manufacturing system, and the government’s ongoing focus on infrastructure development are expected to support the industry’s continued growth in the coming years.
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My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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