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Capital expenditure across sectors driving demand for mining and construction equipment (MCE) is projected to rise from about Rs 5.5 lakh crore in 2025 to Rs 9-10 lakh crore by 2030, creating a long-term growth opportunity for domestic manufacturers and exporters, according to a joint report by the Confederation of Indian Industry (CII) and Boston Consulting Group (BCG).
The report, titled "Pressing the Throttle: How India's Mining and Construction Equipment Industry Can Support Domestic Ambitions and Become a Global Force", said India's infrastructure, manufacturing, mining and energy transition plans are expected to drive sustained demand for mining and construction equipment over the coming decades. "The domestic runway remains long. India's Viksit Bharat trajectory implies a build-out across infrastructure, manufacturing, critical minerals, and the energy transition that runs for decades. Capital expenditure in MCE-linked sectors is expected to rise from about INR 5.5 lakh crore in 2025 to INR 9-10 lakh crore by 2030," the report said. It added that India's Mining and Construction Equipment industry could expand significantly over the long term, reaching USD 180-200 billion by 2047 under the Viksit Bharat roadmap. "On the Viksit Bharat trajectory, the MCE sector could reach an estimated USD 180-200 billion by 2047 driven by domestic demand and global exports," the report said. The report noted that India has already emerged as one of the world's fastest-growing MCE markets, with domestic demand exceeding USD 17 billion in 2025 and growing at 10-12 per cent annually. It also highlighted the country's improving export performance. "India's MCE exports have nearly tripled over the last decade, from USD 1.7 billion in 2015 to around USD 4.9 billion in 2025... The country crossed from net importer to net exporter of mining and construction equipment," it said. Despite that progress, the report said India still accounts for less than 4 per cent of global mining and construction equipment imports, leaving substantial room for export growth. "The export headroom is significant. Globally, countries import around USD 150 billion worth of mining and construction equipment, but less than 4 per cent of that demand is currently supplied by India," it said, adding that Southeast Asia, Africa, the Gulf and South America offer the biggest near-term opportunities as companies diversify supply chains beyond China. The report also pointed to India's relatively low level of mechanisation as another major growth driver. "Mechanisation intensity also remains below global benchmarks at roughly half the global level," it said, indicating significant scope for higher 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. (ANI)
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