The government is working on new regulations for the construction equipment sector that will reduce the import of construction equipment from China, according to Minister of Road, Transport and Highways Nitin Gadkari.
"We will introduce new rule and regulation [for construction equipment] in the next parliament session. Once it is passed, there will be standards, and industry won't face any problems [related to Chinese imports], Gadkari said, while speaking at the annual session of Indian Construction Equipment Manufacturers' Association (ICEMA) on Thursday.
India is the third-largest construction equipment market in the word, valued at around $9-10 billion. The industry is anticipating robust growth over the next few years and aims to become second largest market by 2030.
The domestic construction equipment industry has been under pressure in the recent years with rise of imports from China. In some of the segments such as excavators, the share of imports from China is close to 25%.
Industry experts believe imports from China, a country known for its cost effectiveness, are affordable, but of subpar quality. A stringent law to ensure quality standards are maintained is expected to reduce the import of products from China, and increase the demand for Made-In-India products.
In 2024–25, the Indian construction equipment industry recorded modest growth of 3%, with total sales touching 1,40,191 units, as per ICEMA data. Domestic sales stood at 1,26,961 units, up 2.7%, while exports climbed 10% to 13,230 units.