India Poised to Surpass China in Construction Equipment Market

India’s construction equipment industry is gearing up for a major shift in global rankings, with the country expected to surpass China and become the world’s second-largest market after the United States by the end of this decade. The projection comes from Deepak Shetty, Managing Director of JCB India, the segment’s market leader, who believes the country’s long-term growth trajectory remains solid despite temporary setbacks.

Construction equipment sales in India fell by nearly 10% in the first ten months of 2025 compared to the same period last year. Shetty attributed this decline primarily to delays in payment disbursals to small contractors by several state governments, a factor that slowed procurement and project execution. However, he termed 2025 an “aberration,” saying that recent developments point toward a swift revival.

Favourable monsoon conditions have boosted sentiment in rural India, which accounts for almost three-fourths of JCB’s domestic sales. With nearly 70% of its equipment purchased by first-time buyers, the company sees rural infrastructure spending as a crucial growth driver. Shetty highlighted that new project announcements under the Pradhan Mantri Gram Sadak Yojana (PMGSY) and the National Highways Authority of India (NHAI) will help spur demand from 2026 onwards.

India is expected to close 2025 with sales of 95,000–100,000 construction equipment units, significantly lower than China’s estimated 175,000 units. Even so, Shetty remains confident about India catching up, citing the country’s low mechanisation levels compared to global leaders.

He noted that the mechanisation rate in India still lags the US and China, leaving “a lot of headroom for growth.” JCB India expects the domestic market to double in size over the next five years, fuelled by government spending and accelerating adoption of modern equipment. By 2030, Shetty expects India to overtake China to emerge as the second-largest construction equipment market worldwide, behind the US, which currently leads with annual sales of about 250,000 units.

The government’s massive infrastructure push is central to this optimism. India plans to invest ₹143 lakh crore in infrastructure over the seven fiscal years leading up to 2030—more than double the ₹63 lakh crore spent during 2017–2023. This steep rise in capital expenditure has encouraged construction equipment makers to ramp up production, expand networks, and increase localisation.

Beyond domestic demand, India’s export potential is also strengthening. JCB India shipped 10,000 units to the US last year and diversified further in 2025 after tariffs affected American-bound shipments. The company is witnessing rising demand in Africa, the Middle East, Europe, and Southeast Asia, reflecting strong global acceptance of India-made machinery.

JCB India expects to close 2025 with exports of around 11,500 units, slightly lower than the 14,000 units exported in 2024, but still indicative of resilient international demand.

With rising infrastructure investments, increasing mechanisation, and expanding export markets, India’s construction equipment industry appears firmly on track for a decade of robust growth.