India’s construction equipment (CE) industry is set to register double-digit growth in FY26, driven by improving project execution momentum, robust exports, and a positive infrastructure outlook, according to the Indian Construction Equipment Manufacturers’ Association (ICEMA).
The industry, which recorded 3% growth in FY25 with total equipment sales reaching 1,40,191 units, is now expected to grow at least 10% in the current financial year. This would take the market size from USD 10 billion to approximately USD 11 billion, marking a strong recovery from the previous year’s election-related slowdown.
Exports bolster overall performance
While domestic growth in FY25 remained modest at 2.7%, exports surged 10%, reinforcing India’s status as the world’s third-largest CE market. ICEMA President V Vivekanand highlighted that this export momentum not only cushioned domestic softness but also demonstrated the global competitiveness of Indian-made equipment.
Earthmoving equipment remained the dominant segment, contributing 71% of the total market with 99,159 units sold, reflecting a 6% rise. Within this, backhoe loaders accounted for 53,133 units, or 54% of the segment share, followed by crawler excavators at 35,816 units, making up 36%.
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Other categories included material handling equipment (17,050 units), concrete equipment (14,473 units, up 3%), road construction machines (7,002 units), and material processing equipment (2,507 units).
Demand outlook positive, with policy support key
Looking ahead, the CE industry anticipates heightened demand aligned with India’s infrastructure expansion plans. To capitalise on this growth, ICEMA has called for supportive policy interventions, including improved access to financing and measures to resolve supply chain bottlenecks.
The industry’s strong export foundation, combined with robust domestic manufacturing, positions it well to meet future requirements—provided there is consistent government backing.
ICEMA, which represents over 95% of India’s CE manufacturers, reiterated its confidence in the sector’s resilience and global prospects. The association expects policy stability and infrastructure-led growth to sustain the current momentum in FY26.
