India’s mining and construction equipment (MCE) sector is set to triple in value and reach $45 billion by 2030, up from its current valuation of $16 billion, according to a new report released by the Confederation of Indian Industry (CII) and global consulting firm Kearney. The report estimates a robust compound annual growth rate (CAGR) of 19%, marking India’s ascent as the fastest-growing MCE market among the world’s top six economies.
The CII-Kearney Vision 2030 report lays out a roadmap to transform India into a global manufacturing hub for the MCE sector. The report identifies mining and construction as critical enablers of infrastructure, energy, and industrial growth globally—commanding a $18 trillion market and contributing 16% to the global GDP.
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In India, the MCE sector contributes 22% to GDP, second only to China, and supports over 70 million jobs. The sector has grown at a CAGR of 12% over the past five years and is poised to expand its global influence, supported by India’s infrastructure push and policy tailwinds.
Massive economic impact projected
The report estimates that the sector’s expansion could contribute over $100 billion to the Indian economy by FY30, with the potential to generate 20 million additional jobs, directly and indirectly. This growth will be driven by ancillary industries, increased demand for heavy machinery, and rising construction and mining activities across the country.
Policy and structural recommendations
To unlock this potential, the report outlines several key policy recommendations. These include the creation of a single nodal agency to oversee the sector, a Production Linked Incentive (PLI) scheme specifically tailored for MCE manufacturers, and acceleration of exports through Free Trade Agreements (FTAs).
The report also suggests the need for mutual recognition of Indian certification standards with global benchmarks, rationalisation of tax and import duties, and stronger promotion of automation and advanced technologies in MCE production.
As India eyes leadership in global manufacturing, the mining and construction equipment sector is poised to play a pivotal role in shaping the country’s industrial future.
