India’s Construction Equipment Industry Set For Growth With Rs 12.2 Lakh Crore Capex

Union Minister for Heavy Industries and Steel, HD Kumaraswamy, highlighted that the government’s historic allocation of Rs 12.2 lakh crore as capital expenditure (capex) in the 2026-27 Budget is set to accelerate India’s construction equipment (CE) sector, paving the way for global leadership. Addressing the Annual Construction Equipment Finance Conclave, he emphasised the critical role of a robust financing ecosystem in driving infrastructure and manufacturing growth.

Strategic Infrastructure Push

Kumaraswamy noted that India, currently the world’s fourth-largest economy, is on course to become the third-largest, driven by infrastructure expansion, manufacturing growth, and sustained capital investment. The Budget allocation, he said, provides a multi-year structural push across highways, railways, logistics corridors, ports, renewable energy, and urban development.

Focus On Financing Ecosystem

The Minister stressed that a resilient CE financing ecosystem would generate multiplier effects across the economy. “A strong construction equipment financing framework will empower manufacturers, contractors, MSMEs, logistics operators, and infrastructure developers alike,” he said. He called for collective action to position India as a global hub for construction equipment manufacturing and financing.

Domestic Manufacturing And Innovation

Kumaraswamy highlighted the proposed Scheme for Enhancement of Construction and Infrastructure Equipment (CIE), aimed at strengthening domestic production of high-value and technologically advanced machinery. “This initiative will enable manufacturers to scale confidently, innovate securely, and compete on a global level,” he added.

Market Potential And Emerging Technologies

Citing industry estimates, Kumaraswamy said the Indian CE market is currently valued at approximately $9.5 billion and is expected to more than double by 2030. The sector recorded over 1,40,000 units sold in FY25, with a target to evolve into a $25-billion market by decade-end. He also highlighted the transformative impact of emerging technologies such as automation, AI-enabled fleet management, predictive maintenance, and electric and hybrid CE equipment. Government initiatives, including PM E-DRIVE, are further accelerating the transition to cleaner and more sustainable industrial growth.

With a record Budget allocation, policy interventions, and technological adoption, India’s construction equipment industry is poised for significant expansion. By strengthening financing frameworks, encouraging domestic manufacturing, and embracing emerging technologies, the sector is set to enhance operational efficiency and compete globally, reinforcing India’s position as a key player in the global infrastructure and industrial landscape.