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JCB says India’s construction equipment market may become the world’s second largest by 2030. Despite export challenges, strong infrastructure and rural demand will drive growth ahead.
By Robin Kumar Attri
The market may become the world’s 2nd largest by 2030.
Exports hit due to US tariff issues.
Industry volumes to dip to 90,000 units.
JCB India expects double-digit growth next year.
New 52-tonne excavator to be launched.
India’s construction equipment industry is on track for strong long-term expansion, with JCB India predicting that the country could surpass China and become the world’s second-largest construction equipment market by 2030. However, the sector is currently facing short-term challenges that need government support for a smooth recovery.
JCB India CEO and MD Deepak Shetty stated that the construction equipment sector has witnessed a decline this year due to multiple disruptions. One of the biggest concerns has been a sharp drop in export volumes.
India currently sells 95,000 to 1 lakh construction equipment units annually, which is significantly lower compared to:
China: 1.75 lakh units
United States: 2.5 lakh units
According to Shetty, addressing tariff-related issues with the US, one of India’s key export destinations, will be important for recovery. He said better monsoon conditions would also help the market bounce back in 2026.
Shetty urged the government to:
Continue its strong focus on infrastructure development
Support state governments with additional funds for rural infrastructure
Announce export incentives to counter tariff barriers
Strengthen India’s use of global Free Trade Agreements (FTAs)
“The first request is that the focus on infrastructure should continue. The second is how to support state governments so they can invest more in rural infrastructure,” Shetty said. Many states, he noted, are currently facing difficulty in funding contractors.
Exports have been one of the biggest pressure points for the industry. Shipments to the US have slowed due to tariff challenges.
Shetty added that the government should introduce motivating schemes for exporters to offset the impact of such tariffs.
While JCB India exports to over 135 countries, overall industry volumes are expected to fall from 1 lakh units in 2024 to about 90,000 units this year, with the export slowdown being a major factor.
India also has low penetration levels in sectors like agriculture, which Shetty believes will drive rapid market growth over the next five years.
For JCB India, the short-term forecast shows a dip:
Total volumes:
Last year: 64,500 units
This year: ~57,000 units
Exports:
Last year: 14,000 units
This year: ~11,500 units
Domestic sales:
Last year: 50,000 units
This year: ~47,000 units
The decline is despite strong underlying demand.
Despite the slowdown, Shetty remains positive about next year, expecting double-digit growth in both domestic and export markets. A resolution on US tariffs and strong rural economic activity—supported by good monsoons—are likely to support the recovery.
He highlighted that 70% of JCB machines are sold in rural India, making rural demand a key driver of future growth. States like Andhra Pradesh and Maharashtra are already showing strong infrastructure activity.
JCB India is also investing heavily in future-ready technology, including:
Hydrogen-compatible construction equipment
Specialised machines for Railways and defence
Launch of a 52-tonne excavator, the largest machine ever designed in India by JCB
These advancements reflect the company’s push towards innovation and sustainable equipment solutions.
Also Read: RVNL Bags ₹165 Crore Contract for New Rail Bridge Between Paniyahwa and Valmikinagar
India’s construction equipment market is facing a temporary slowdown, but the long-term outlook remains strong. With government support, export incentives, and a resolution of US tariff issues, the sector is expected to bounce back in 2026. JCB India anticipates rapid growth driven by rural demand, strong infrastructure activity, and new technology investments. As India moves toward becoming the world’s second-largest market by 2030, strategic policies will play a crucial role.
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