India’s construction equipment (CE) industry has firmly established itself as the world’s third-largest market, trailing only China and the United States. However, a significant Rs 45,000 crore import bill for critical equipment and components remains a major structural challenge. Speaking at the ICEMA Annual Session 2026 in New Delhi on September 1, H D Kumaraswamy, Minister of Heavy Industries and Steel, pushed the sector to move from an import-dependent market into a self-reliant manufacturing hub.
The Indian CE sector is currently riding an unprecedented wave of growth. Driven by massive infrastructure investments, the market is projected to skyrocket, more than doubling to reach a staggering Rs 228,000 crore by the 2029-30 financial year.
Government Scheme to Boost Local CE Manufacturing
Despite this robust trajectory, the sector’s reliance on foreign components poses a critical vulnerability. To mitigate this risk and build local manufacturing capability, the Ministry of Heavy Industries is actively deploying policy support. Kumaraswamy highlighted that the Union Budgets for FY26-27 introduced a dedicated scheme for the enhancement of construction and infrastructure equipment. This targeted program is designed to incentivize the localized manufacturing of critical components, strengthen the domestic supply chain, and reduce excessive reliance on foreign imports.
MSME Push in the CE Value Chain
A critical pillar of this self-reliance push is the integration of Micro, Small, and Medium Enterprises (MSMEs)."A globally competitive OEM ecosystem can only be built on the foundation of a strong and capable supplier base," Kumaraswamy stated, emphasizing that the government's scheme is tailored to drive deeper participation of MSMEs within the CE value chain
Vision 2047: Innovation Over Scale
As the industry eyes the road to 2047, the Minister urged domestic and global OEMs to prioritize technological innovation and localization over mere scale. He called for accelerated development of fuel-efficient, low-emission, electric, and digitally enabled machinery, declaring: "The objective should be to leverage these strengths to manufacture not only for India but make India for the world."