India’s construction equipment industry showed resilience in FY26 with a notable 31.5% increase in exports, despite a slowdown in domestic sales. The Indian Construction Equipment Manufacturers’ Association (ICEMA) report highlighted that the sector maintained its strength due to the growth in exports, even amidst challenges like slower infrastructure development and project delays.
The industry, valued at $10 billion in FY25, is positioned as the world’s third-largest construction equipment market. Projections suggest a growth to $14.76 billion by 2030, with a compound annual growth rate of 8.3%. However, the total equipment sales saw a slight decline of about 2% to 1,36,995 units during the fiscal year.
Deepak Shetty, President of ICEMA and CEO & Managing Director of JCB India Ltd., emphasized that the decline in FY26 was more a result of sluggish infrastructure projects rather than inherent industry weaknesses. He attributed the drop in demand to delays in project execution, land acquisition hurdles, and slower disbursement processes affecting equipment requirements.
The report also pointed out that challenges such as land acquisition delays, reduced project awards, and constrained fund disbursements for initiatives like the Jal Jeevan Mission impacted domestic demand. Moreover, payment delays to contractors and the implementation of CEV Stage V emission norms led to increased equipment costs, further straining the industry.
Shalabh Chaturvedi, Vice President of ICEMA and Managing Director of CASE Construction Equipment India Pvt. Ltd., stressed the importance of timely project execution, faster on-ground implementation, and enhanced liquidity support for contractors to revive growth in the sector. The industry remains positive about its long-term prospects, buoyed by ongoing investments in various infrastructure segments.
