India Set to Boost Construction Equipment Exports Fivefold, Says Industry Experts

Key Highlights:

• India’s share in the global construction equipment market could grow five times.
• Exports are expected to grow strongly in FY 2026.
• India currently holds less than 3% of the global construction equipment export market.
• The UK-India Free Trade Agreement is boosting parts exports and making it easier for Indian engineers to work in the UK.
• In 2024–25, the industry grew 3% with exports up 10%, keeping India the third-largest market despite slower domestic growth.

India’s share in the global construction equipment market can grow five times, says top industry leaders. The main factor behind this rise can be increasing demand from developed countries and helpful trade deals like the UK-India Free Trade Agreement (FTA). The industry also expects exports to grow by a strong double-digit percentage in the financial year 2026, supported by improved emissions and safety rules.

V. Vivekanand, President of the Indian Construction Equipment Manufacturers’ Association (ICEMA) and Managing Director of Caterpillar India, mentioned that while demand is slowing in developing regions like SAARC countries, markets in Europe, the UK, the US, and Australia are growing fast.

Vivekanand said that even though exports to developing countries might be going down, India now meets global standards in safety, efficiency, and technology, which is increasing demand from developed markets. He added that currently, India’s construction equipment exports are less than 3% of the world market, while countries like China, Korea, and Japan have 12–15%. He believes India can grow five times more and even go beyond those countries.

Deepak Shetty, who represents the Indian branch of UK-based JCB, highlighted the advantages of the UK-India Free Trade Agreement. He said that last year, JCB sent almost 70,000 tonnes of parts from India to their UK factories, and the agreement will help increase that. He also mentioned a special rule in the deal that allows Indian engineers working in the UK on technical projects to avoid paying social security contributions for up to three years, which encourages easier movement of skilled workers.

Current Market Performance and Future Outlook

In 2024–25, the Indian construction equipment industry grew slowly by 3%, selling a total of 1,40,191 units, according to ICEMA. Domestic sales increased by 2.7% to 1,26,961 units, while exports rose by 10% to 13,230 units. This helped India maintain its position as the third-largest construction equipment market in the world.

Even though exports grew well, domestic growth slowed down in 2024–25 compared to the 26–27% jump the year before. Shetty said this slowdown was because of the general elections and the Model Code of Conduct. Industry experts are hopeful and expect government support and a good monsoon season to increase demand in rural areas, which use about 65% of the construction equipment in India.

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CMV360 Says

India’s construction equipment industry shows great potential. With better technology and strong trade agreements, exports can grow a lot in the construction equipment industry. This will help India become a bigger player in the global market and support more jobs at home.