New Delhi: India’s construction equipment industry recorded a sharp 31.5 per cent rise in exports in FY26, helping the sector stay resilient despite weaker domestic demand and slower infrastructure execution, according to a report released by the Indian Construction Equipment Manufacturers’ Association (ICEMA).
The report noted that India continues to be the world’s third-largest construction equipment market. The sector, estimated at nearly $10 billion in FY25, is expected to grow to around $14.76 billion by 2030 with a projected annual growth rate of 8.3 per cent.
Although overall equipment sales slipped by nearly 2 per cent during the financial year to 1,36,995 units, the strong export performance helped offset the slowdown in the domestic market.
According to ICEMA, domestic demand — excluding non-OEM exports — declined by around 7 per cent across most equipment categories due to delays in infrastructure projects and slower fund disbursement.
Deepak Shetty said the decline should not be viewed as a sign of weakness in the sector.
“The slowdown was largely due to delays in project execution, land acquisition issues and slower release of funds, even though government capital expenditure remains at historically high levels,” he said.
He added that the strong rise in exports reflects the increasing global competitiveness of construction equipment manufactured in India.
The report also highlighted several factors that affected domestic demand, including delays in land acquisition, fewer project approvals, slower implementation of schemes such as the Jal Jeevan Mission, and payment delays faced by contractors.
In addition, the introduction of CEV Stage V emission norms increased equipment costs significantly, while rising crude oil and bitumen prices added further pressure on the industry during the latter part of FY26.
Shalabh Chaturvedi said India’s long-term infrastructure outlook remains strong, but faster project execution and better liquidity support for contractors will be important to revive growth momentum.
The industry body remains optimistic about future growth, citing continued investments in roads, railways, mining, housing, urban infrastructure and rural development as major drivers for the sector in the coming years.
With inputs from IANS