India’s construction equipment industry is targeting a major leap in global rankings, with the sector expected to become the world’s second-largest market by 2030, according to the Indian Construction Equipment Manufacturers’ Association (ICEMA). Currently, the United States and China hold the top two positions globally, while India ranks third.
The industry recorded total sales of 136,995 units during FY26 and is projected to reach nearly 250,000 units annually by the end of the decade. Growth is expected to be driven by continued infrastructure investments, rising exports, and increasing localisation of manufacturing and supply chains.
Speaking on the outlook, ICEMA President Deepak Shetty said, “We expect that by 2030, we should be very close to around 250,000 units. Today we are the third-largest construction equipment market in the world, and we expect to move to the second-largest market by 2030.”
The industry, however, faced several challenges during the last financial year, including weaker domestic demand, election-related disruptions, increased equipment costs due to the transition to Stage 5 emission norms, and supply chain issues linked to the Red Sea crisis.
Domestic sales declined by around 7% during FY26, although strong export growth of over 30% helped limit the industry’s overall decline to nearly 2%, ICEMA noted.
According to Shetty, demand conditions improved during the latter half of the financial year, particularly in the fourth quarter, supported by increased road project awards and sustained government spending on infrastructure development. He added that continued investments in roads, railways, mining, and rural infrastructure are expected to support long-term sector growth.
For FY27, ICEMA expects domestic sales to grow by around 7%, while exports are projected to rise by at least 20%.
Exports have become a key growth driver for the Indian construction equipment industry, with locally manufactured machines now being shipped to more than 125 countries, including several developed markets across Europe.
“It is a very proud moment that machines engineered and manufactured in India are today going to more than 125 countries,” Shetty said. “A majority of them are going to developed markets, which reflects the quality standards and competitiveness of Indian products globally.”
The implementation of Stage 5 emission norms has also helped Indian manufacturers access newer export markets, especially in Europe where similar standards are followed. Additionally, India’s free trade agreements with countries such as the UAE and Australia are expected to further strengthen export opportunities.
ICEMA highlighted that increasing localisation of components and supply chains will play a crucial role in improving India’s export competitiveness, particularly in segments such as excavators and advanced construction machinery that still depend heavily on imported components.
The association also stated that government incentives focused on boosting investments in the construction equipment sector could accelerate supply chain migration to India and strengthen the country’s position as a global manufacturing and export hub.
