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EQUIPMENT TICKER TAPE

CONSTRUCTION EQUIPMENT SECTOR TO GROW 7% IN Yojana till 2028 and increased allocation for the Jal Jeevan
FY27: ICEMA Mission would further support demand, particularly in rural areas.
After a stagnant FY26, India’s construction equipment sector is The expected utilisation of the Centre’s `1.5 lakh crore
projected to grow by 7% in FY27, reaching new heights fueled by infrastructure loan support for states is also likely to aid growth.
a `12.2 lakh crore government infrastructure allocation. ICEMA expects the market to grow to around 250,000 units by the
The domestic construction equipment industry is expected end of this decade, driven by infrastructure spending, exports,
to return to growth in FY27 after a weak FY26, with the industry and localisation of supply chains amid increased government
body Indian Construction Equipment Manufacturers Association capex spending. Shetty said the Ministry of Heavy Industries’
(ICEMA) projecting around 7% growth next year. Scheme for Enhancement of Construction and Infrastructure
The recovery is expected to be driven by higher government Equipment (CIE), aimed at bolstering domestic manufacturing
spending on infrastructure, improving road construction activity, of high-value machinery, would support this growth.
and increased allocation for rural projects, Deepak Shetty, According to Shetty this will also help the industry attract
President, ICEMA said on Friday. European, Japanese, US and other players to manufacture in
The industry had a weak FY26, with total equipment sales India. “We are seeing many foreign players from across the globe
declining around 2% year-on-year to 136,995 units, compared planning to participate in the scheme. The scheme will help the
to 140,191 units in FY25, ICEMA data shows. Exports, however, rose industry grow to new heights,” Shetty said. The scheme will run for
more than 30%, partly offsetting the fall in domestic demand. seven years and will have an outlay of `13,000–`14,000 crore.

Overcoming Stage V Hurdles Future-Proofing the Fleet
Shetty attributed the decline in FY26 to state elections, slower The industry is also expected to gradually shift towards alternative
execution of roads and highways projects, reduced activity fuel technologies. Smaller machines used in urban areas are
under the Jal Jeevan Mission, and the transition to stricter Stage likely to adopt electric powertrains, while larger equipment may
V emission norms, which increased equipment prices by around move towards hydrogen fuel. Medium-sized machines such as
12–15 per cent. backhoe loaders could use CNG or hydrogen-based systems.
“What happened was that while stricter emission norms helped Shetty estimated that EV, CNG and hydrogen-powered machines
export growth, they also increased prices in the domestic could account for 20–25%of the industry by 2030.
market,” Shetty said. India is currently the world’s third-largest construction equipment
Shetty said growth in FY27 would be supported by the Centre’s market after the US and China and is expected to become the
`12.2 lakh crore infrastructure allocation, higher spending on second-largest by 2030, according to Shetty. The industry is
rural roads, railways, mining, and urban infrastructure projects. projected to grow from $10 billion to $14.76 billion by 2030 at a
He added that the extension of the Pradhan Mantri Gram Sadak CAGR of 8.3%.

38 CONSTRUCTION OPPORTUNITIES|APRIL 2026