Capital expenditure across sectors driving demand for mining and construction equipment is projected to increase from about Rs 5.5 trillion in 2025 to Rs 9–10 trillion by 2030, creating a long-term growth opportunity for domestic manufacturers and exporters.

The report, titled Pressing the Throttle: How India’s Mining and Construction Equipment Industry Can Support Domestic Ambitions and Become a Global Force, said the country’s infrastructure, manufacturing, mining and energy-transition plans are expected to sustain demand for mining and construction equipment over the coming decades.

According to the report, India’s Viksit Bharat trajectory will require long-term development across infrastructure, manufacturing, critical minerals and the energy transition. Under this roadmap, the MCE sector could expand to an estimated $180–200 billion by 2047, supported by domestic demand and global exports.

India has emerged as one of the world’s fastest-growing MCE markets, with domestic demand exceeding $17 billion in 2025 and expanding at an annual rate of 10–12 per cent. The country’s export performance has also improved significantly.

MCE exports nearly tripled over the past decade, rising from $1.7 billion in 2015 to around $4.9 billion in 2025. During this period, India transitioned from being a net importer to a net exporter of mining and construction equipment.

Despite this progress, India supplies less than 4 per cent of global mining and construction equipment imports, indicating considerable potential for further export growth. Countries worldwide import around $150 billion worth of MCE, according to the report.

Southeast Asia, Africa, the Gulf and South America represent the largest near-term opportunities as companies seek to diversify their supply chains beyond China.

The report also identified India’s relatively low mechanisation level as a major growth driver. Mechanisation intensity in the country is roughly half the global level, providing substantial scope for increased equipment demand and productivity gains.

To strengthen India’s position as a global manufacturing and export hub, the report recommended deeper localisation of high-value components, greater investment in research and development, wider adoption of digital and low-emission equipment, stronger supplier ecosystems, and closer collaboration between government and industry.

(Source: ET Manufacturing)