New Delhi, May 8 (IANS) India’s construction equipment industry remained resilient in FY26 and it posted a robust 31.5 per cent surge in exports even as domestic sales eased, a report said on Friday.
The report from Indian Construction Equipment Manufacturers’ Association (ICEMA) said exports growth helped the sector remain resilient despite slower infrastructure execution and project delays.
India continues to remain the world’s third-largest construction equipment market, with the sector estimated at $10 billion in FY25 and is projected to reach $14.76 billion by 2030 at a compound annual growth rate of 8.3 per cent, the report added.
The total equipment eased about 2 per cent during the fiscal to 1,36,995 units. Domestic demand, excluding non‑OEM exports, dropped roughly 7 per cent year‑on‑year across most equipment categories, the association said.
“The marginal decline witnessed in FY26 must be viewed in the context of slower infrastructure execution on the ground rather than any structural weakness in the industry,” said Deepak Shetty, President, ICEMA and CEO & Managing Director, JCB India Ltd.
“While Government capex allocations continue to remain at historically high levels, delays in project execution, land acquisition challenges and slower disbursement cycles impacted equipment demand during the year,” he added.
Meanwhile, the export growth highlighted the growing global competitiveness of Indian-manufactured construction equipment and the association remains confident about the industry’s long-term growth trajectory driven by India’s continued infrastructure development focus, Shetty said.
Land acquisition delays, fewer project awards and moderated fund disbursements for programs such as the Jal Jeevan Mission affected the domestic demand, the report said.
Further, contractor payment delays compressed liquidity across the infrastructure ecosystem and the implementation of CEV Stage V emission norms raised equipment costs significantly given the high financing dependence in the industry.
Global commodity price inflation through rising crude oil and bitumen costs added further pressure in the latter part of FY26.
“India’s infrastructure growth story remains strong. Timely execution of projects, faster implementation on ground and improved liquidity support for contractors will be critical in restoring growth momentum for the sector,” said Shalabh Chaturvedi, Vice President, ICEMA and Managing Director – India & SAARC, CASE Construction Equipment India Pvt. Ltd.
The Indian construction equipment industry remains optimistic about long-term growth prospects driven by continued investments in roads, railways, mining, urban infrastructure, housing and rural development, the association said.
The strong export foundation, robust domestic manufacturing ecosystem and sustained government focus on infrastructure development are expected to support sustained industry growth in the coming years.
—IANS
aar/pk
