New Bill to Boost India’s Construction Equipment Industry Announced by Nitin Gadkari

Key Highlights:

• The government plans a new Bill for CE industry support.

• Aims to cut Chinese imports and boost local makers.

• 10% aid for clean fuel machinery proposed.

• ₹7 lakh crore projects to be awarded this year.

• Focus on skill training and advanced equipment.

The Union government is preparing a new Bill to strengthen India’s construction equipment (CE) industry, Union Minister for Road Transport and Highways Nitin Gadkari announced on Thursday. The aim is to reduce dependency on imports, particularly from China, and make Indian manufacturers more competitive through clear policies and standards.

Government Plans New Rules and Regulations

Speaking at the annual session of the Indian Construction Equipment Manufacturers Association (ICEMA), Gadkari said, “We will frame rules and regulations for it. Our Bill will be released in the next session. Once it is approved, the standards will be set. You will not have to face the problems you are facing today. Once the Bill is approved, all your worries will be solved.”

ICEMA represents over 150 members, including 95% of India’s construction equipment makers and component manufacturers. The new Bill is expected to give a strong policy framework to this growing industry.

Challenges in India’s Construction Equipment Sector

India’s construction equipment market is currently valued at around $9 billion. However, the rise of low-cost Chinese imports has created challenges for domestic firms. Experts estimate that Chinese equipment now makes up nearly 25% of certain market segments, such as excavators.

Last year, companies like Tata Hitachi raised concerns about increasing import shares, which made competition tougher for Indian manufacturers. The new Bill aims to address these concerns by setting quality standards and supporting local production.

Support for Clean and Green Technology

The minister also discussed measures to promote cleaner and more sustainable machinery. Gadkari said the government is considering a 10% machinery advance for OEMs that shift to flex engines and clean fuels. He added that buyers of construction equipment running on alternative fuels could get zero per cent interest loans.

Infrastructure Push and Industry Growth

Gadkari noted that the temporary slowdown in the CE sector last year was due to the cancellation of the Bharatmala project, but he assured that the issue has now been resolved.

He said, “That problem has been solved. We have awarded ₹2 lakh crore so far. Now we will award another ₹5 lakh crore, taking the total to ₹7 lakh crore by year-end.”

The minister also announced a long-term target, saying, “We aim to award road projects worth ₹10 lakh crore every year.”

According to the Federation of Automobile Dealers Associations (FADA), retail sales of construction equipment grew slightly to 24,568 units during April–July 2025, compared with 24,240 units during the same period last year, showing positive momentum in the sector.

Call for High-Capacity Machinery Investments

Gadkari urged Indian manufacturers to focus on high-capacity machines for tunneling and pre-cast construction projects. “We are building tunnels worth ₹3 lakh crore, but machinery availability remains a bottleneck. European countries have advanced tunnel boring machines, and we need to adapt similar technologies for Indian conditions,” he said.

He added that pre-cast construction is now mandatory in many new projects, requiring specialized equipment. The minister called on the industry to step up innovation in these areas to meet future infrastructure needs.

Reducing Logistics Costs

Highlighting infrastructure improvements, Gadkari mentioned that logistics costs have come down from 16% to lower levels due to better roads and connectivity. The government now aims to reduce it further to 9% by December, improving the efficiency of India’s transportation network.

Focus on Skill Development

The minister emphasized the need for training and skill development among construction equipment operators. “It is very important to give skill training to these people. You should have a three-month course at the regional level on how to operate it, especially in areas where you have strong sales. Come to me, I will give you approval from the Indian government,” he said.

Currently, operators of heavy construction machinery do not require formal licenses or regulatory approvals, unlike drivers of road vehicles. The proposed Bill could introduce new skill certification and safety measures to bridge this gap.

Also Read: L&T CE & IPDD Secures Major Projects in India and Abroad

CMV360 Says

The upcoming Bill aims to transform India’s construction equipment industry by promoting domestic manufacturing, cleaner technologies, and skilled manpower. With large infrastructure investments and policy support, the government’s plan could significantly boost local production, reduce imports, and position India as a global hub for construction machinery.