India is the third biggest market for construction equipment globally, with a industry worth approximately $10 billion in the fiscal year 2024, and could become a hub for manufacturing and exporting, according to the industry association.
A report by the Indian Construction Equipment Manufacturers Association (ICEMA), it is predicted that the construction equipment industry in India will increase by 12 per cent annually, reaching $25 billion by the end of the decade, due to the government's infrastructure sector expansion.
“As a result of current announced infrastructure investments in India, the CE industry is expected to reach $25 billion in FY30, posting a CAGR of 12 percent with an envisaged investment in the industry value chain of around $4 billion, which includes around $1 billion over next five years in manufacturing by OEMs and 3X investment (around $3 billion) by suppliers, component manufacturers and distribution channels,” ICEMA said in the report, 2035 Construction Equipment Market Outlook for India.
The Indian construction equipment market has over 50 OEM manufacturers and offers jobs to over 3 million individuals (both direct and indirect). The global trade of Indian construction equipment is approximately $3 billion, with imports totaling $2.6 billion and exports amounting to around $500 million.
“By FY35, the CE industry is expected to reach $37 billion. However, with the commencement of the government’s ambitious Amrit Kaal vision to make India an economic and manufacturing hub by using long-term infrastructure investments, the CE industry could grow at a faster rate to achieve a market size of $42 billion in FY35,” the report noted.
