India’s construction equipment sector posted 3% growth in FY25, driven by strong export performance amid weak domestic sales, positioning the country as the world’s third-largest CE market and highlighting the industry's global competitiveness.
28 May 2025 | 1094 Views | By Sarthak Mahajan
The Indian construction equipment industry recorded a 3% year-on-year growth in FY25, reaching sales of 1,40,191 units, according to the Indian Construction Equipment Manufacturers’ Association (ICEMA). While domestic sales saw modest growth of 2.7% at 1,26,961 units, a 10% rise in exports to 13,230 units provided crucial momentum, reinforcing India’s ...
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The Indian construction equipment industry recorded a 3% year-on-year growth in FY25, reaching sales of 1,40,191 units, according to the Indian Construction Equipment Manufacturers’ Association (ICEMA). While domestic sales saw modest growth of 2.7% at 1,26,961 units, a 10% rise in exports to 13,230 units provided crucial momentum, reinforcing India’s position as the third-largest construction equipment market globally.
ICEMA President and Caterpillar India MD V. Vivekanand said the growth reflects the industry's resilience despite challenges in the domestic market, such as election-related slowdowns and fluctuating demand. “The remarkable export surge validates the competitiveness of Indian-made equipment and sets a strong foundation for future global expansion,” he stated.
Among equipment segments, earthmoving machinery remained dominant, accounting for 71% of total sales. Backhoe loaders and crawler excavators led the category. Material handling equipment held its place as the second-largest segment, followed by concrete, road construction, and material processing equipment.
ICEMA officials noted that despite stable overall domestic sales, underlying demand appeared subdued. Non-OEM exports grew by 19%, suggesting that while figures remained steady, core domestic consumption had moderated. Factors such as prolonged monsoons, high input costs, and project execution delays impacted growth.
Commenting on future prospects, ICEMA President-Designate and JCB India CEO Deepak Shetty highlighted expectations of renewed momentum through infrastructure expansion. However, he emphasized the need for broader sectoral drivers beyond road and highway construction to ensure long-term, sustainable growth.
ICEMA's Jaideep Shekhar added that the strong export performance, combined with 98% domestic production, underscores the industry's maturity and readiness to scale further. Director General Seema Gupta echoed the sentiment, crediting the sector’s adaptability during a year of regulatory and economic headwinds.
Looking ahead, the industry anticipates rising equipment demand, backed by infrastructure investments and potential policy support. To realize this, industry leaders have called for targeted interventions from the government to facilitate financing, stabilize raw material supply, and boost domestic demand.