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This gives the industry more than one demand engine. The early increasingly important as projects grow more complex and
FY2026–27 numbers underline the momentum. ICEMA reported specialised.
total construction equipment sales of 31,945 units in the first Recent reports indicate that the government is preparing an
quarter, up 11% year-on-year. Domestic sales rose 9%, while incentive programme of around $1.2 billion over seven years,
exports increased 32%, with growth across major equipment with the potential to attract approximately $1.8 billion in fresh
categories. The pipeline ahead remains substantial. As of July investment. The framework is also expected to encourage higher
2026, the Centre was monitoring 1,775 large infrastructure projects local value addition in equipment categories where India remains
across 17 ministries and departments, with a revised cost of `37.11 dependent on overseas manufacturing.
lakh crore. The significance extends beyond assembling finished machines.
Execution will determine how quickly investment converts into Advanced equipment manufacturing requires precision
equipment demand. Project awards, approvals, contractor engineering, hydraulics, electronics, controls, specialised
liquidity and fund flows all influence activity at the jobsite. But materials and a capable supplier ecosystem. As India expands
the larger picture remains positive. India is building simultaneously production in more technology-intensive categories, these
across transport, urban mobility, logistics, industry, energy and capabilities can develop alongside it, strengthening the wider
digital infrastructure. Data centres and new industrial investments industrial base.
are adding further depth to the construction pipeline. For The timing is significant. Metro systems, tunnels, rail corridors,
equipment manufacturers, the opportunity is no longer tied to a ports, airports and large urban projects are generating demand
single infrastructure programme or machine category. It is being not simply for more equipment, but for machines capable of
shaped by the cumulative impact of a country building across handling increasingly specialised applications.
multiple sectors and at multiple scales. India has already established strength in several mainstream
categories. The next opportunity is to build greater depth in
THE MANUFACTURING MOMENT high-value segments where engineering, product development
India’s construction equipment industry has grown alongside and specialised components play a larger role. That will require
the country’s infrastructure ambitions. The next phase could see more than additional factory capacity. Advanced manufacturing
greater emphasis on building the manufacturing capabilities depends on sustained investment in product development,
behind the machines transforming that landscape. testing, suppliers and engineering talent, as well as the ability to
That shift has gained momentum with the proposed Scheme adapt equipment to Indian operating conditions.
for Enhancement of Construction and Infrastructure Equipment, There is also a wider strategic opportunity. Stronger domestic
announced as part of the Union Budget for FY2026–27. The capabilities can help India serve its growing home market while
initiative aims to strengthen domestic manufacturing of becoming more deeply integrated into global production and
technologically advanced equipment, including tunnel boring sourcing networks. The industry’s next manufacturing chapter,
machines, lifts and firefighting equipment—categories becoming therefore, is not simply about producing more machines.

14 CONSTRUCTION OPPORTUNITIES|SEPTEMBER 2026