Indian construction equipment exports surge despite domestic slowdown driven by infrastructure delays and higher operational costs.
New Delhi
India’s construction equipment industry recorded strong export growth of 31.5% in FY26, even as domestic demand softened, according to a report by the Indian Construction Equipment Manufacturers’ Association (ICEMA). The sector showed resilience despite challenges such as slower infrastructure execution and project delays.
India continues to be the world’s third-largest construction equipment market, with the industry valued at about $10 billion in FY25. It is projected to reach $14.76 billion by 2030, growing at a compound annual growth rate of 8.3%.
Total equipment sales declined by around 2% during FY26 to 1,36,995 units. Domestic demand, excluding non-OEM exports, fell by nearly 7% across major equipment categories, reflecting weaker project execution on the ground.
ICEMA officials said the decline does not indicate structural weakness but is linked to execution delays rather than reduced long-term demand. They noted that government capital expenditure remains strong, but issues such as land acquisition delays, slower project awards, and funding bottlenecks affected momentum.
Liquidity pressures were also visible due to delayed contractor payments, which impacted cash flow across infrastructure projects. Additionally, the implementation of CEV Stage V emission norms increased equipment costs, while global commodity inflation—especially in crude oil and bitumen—added further pressure.
Despite domestic slowdown, export performance remained strong, highlighting growing global competitiveness of Indian-made construction equipment. Industry leaders said this reflects the sector’s improving manufacturing capabilities and international acceptance.
The association expressed confidence in long-term growth, driven by continued investment in roads, railways, mining, urban infrastructure, housing, and rural development.
Industry representatives, including ICEMA President Deepak Shetty and Vice President Shalabh Chaturvedi, emphasized that faster project execution, improved liquidity support, and timely policy implementation will be key to restoring stronger domestic demand.
Overall, the sector remains optimistic that sustained infrastructure focus will support stable growth in the coming years.
