Construction Equipment Industry Charts the Road to a Trillion-Dollar Economy at ICEMA Annual Session 2026
Union Minister H.D. Kumaraswamy and Union Minister G. Kishan Reddy, along with NITI Aayog Member Dr. R. Balasubramaniam and Mr. Mahmood Ahmed, Additional Secretary, Ministry of Road Transport and Highways, join industry leaders to chart the CE sector’s role in India’s infrastructure, manufacturing and Viksit Bharat 2047 ambitions
New Delhi, 1 September 2026: The Indian Construction Equipment Manufacturers’ Association (ICEMA) today hosted its Annual Session 2026 at Hotel Taj Palace, New Delhi, under the theme “Machines that Build India — CE at the Heart of a Trillion-Dollar Economy.” The Annual Session brought together senior government leadership, policymakers and industry captains to deliberate on the Construction Equipment (CE) industry’s role in powering India’s infrastructure build-out, manufacturing competitiveness and the country’s journey towards Viksit Bharat 2047.
The Session was addressed by Shri H.D. Kumaraswamy, Hon’ble Union Minister for Heavy Industries and Public Enterprises; and Shri G. Kishan Reddy, Hon’ble Union Minister for Coal and Mines, along with Dr. R. Balasubramaniam, Member, NITI Aayog, and Mr. Mahmood Ahmed, Additional Secretary, Ministry of Road Transport and Highways. Mr. Deepak Shetty, President, ICEMA and CEO & Managing Director, JCB India, led the industry’s engagement with policymakers through the day, alongside senior ICEMA members and industry leaders.
Key Announcements and Industry Takeaways
- Building the Backbone of the Economy: Economic multiplier effect of infrastructure spend delivering a strong Q1 FY’27 GDP of 7.8%
- Accelerating Manufacturing Investments: Through the proposed Construction Infrastructure Equipment (CIE) Scheme and its role in attracting investment, deepening localisation and strengthening India’s capital goods and CE manufacturing ecosystem.
- Catalysing Global Competitiveness: Industry and policy perspectives on trade, tariffs and market access, in the context of the CE industry’s Vision 2030 target of US$3 billion in exports.
- Accelerating India’s Mining Growth: Deliberations on mineral security, mechanisation and the enhancement of domestic mining equipment ecosystem through higher localization.
- Journey to Viksit Bharat 2047: A concluding dialogue on the policy priorities and enablers required to position India’s CE industry as a driver of the country’s trillion-dollar manufacturing ambition.
Government Perspectives
Shri H.D. Kumaraswamy, Hon’ble Union Minister for Heavy Industries and Public Enterprises, Government of India, said: “I appreciate ICEMA and its consistent efforts to strengthen the construction and infrastructure equipment industry in India, a contribution that is critical to the nation’s progress. The Scheme for Enhancement of Construction and Infrastructure Equipment, announced in the Union Budget 2026–27, will help promote the manufacturing of critical equipment and components, strengthen our domestic supply chain, and reduce our dependency on imports. I am confident that with close collaboration between Government and industry, India can become a leading global centre for construction equipment manufacturing and technology.”
Shri G. Kishan Reddy, Hon’ble Union Minister for Coal and Mines, Government of India, said:
“India’s mining sector reforms over the past decade, moving to a transparent, auction-based system for allocating coal and mineral blocks, have helped bring greater investment, competition and technology into this space, and ICEMA and its member companies have been valuable partners in this journey. The next phase of growth in mining will be driven by technology, artificial intelligence, drones, satellite mapping and modern, mechanised equipment, and I see this as a significant opportunity for ICEMA and the entire construction and mining equipment industry to deepen its role in India’s mining growth story.”
Dr. R. Balasubramaniam, Member, NITI Aayog, said: “For a sector like construction equipment, growth cannot happen in isolation, it depends on the capacity of the larger infrastructure ecosystem to absorb what the industry produces, and on the skilled manpower needed to deploy it. The way forward is for Government, industry and the States to stop operating as separate stakeholders and start functioning as true partners, each accountable to the other, each willing to close the other’s gaps, because that is the only way India can achieve the scale of growth it aspires to.”
Mr. Mahmood Ahmed, Additional Secretary, Ministry of Road Transport and Highways, said:
“The road sector commands the largest share of the Government’s capital expenditure today, and the numbers speak for themselves, our national highway network has grown to nearly one-and-a-half lakh kilometres in a decade, with construction pace roughly tripling in the same period. Partners like ICEMA and the construction equipment industry have been central to this story, manufacturing the vast majority of their equipment in India and adapting quickly to cleaner emission standards. Going forward, our focus is on building a safer, more connected ecosystem, better equipment, better-trained operators, greater digital tracking, and extending this partnership to off-highway and mining equipment as well, because Government and industry can only get there by working together.”
Industry Perspective
Mr. Deepak Shetty, President, ICEMA and CEO & Managing Director, JCB India, said:
“India’s Construction Equipment industry has emerged as a strategic pillar of the country’s infrastructure and manufacturing ambitions. As India accelerates its journey towards Viksit Bharat 2047, through the proposed Construction Infrastructure Equipment (CIE) Scheme, the industry has a unique opportunity to scale manufacturing, deepen localisation, strengthen exports and drive technology adoption. This will further increase our commitment to the vision of Atmanirbhar Bharat and Make in India”.
“Through ICEMA, we remain committed to working closely with Government and all stakeholders to create an industry that is innovative, sustainable, globally competitive and capable of supporting India’s long-term growth aspirations.”, he further added.
Industry Context
India continues to be the world’s third-largest construction equipment market, with the sector estimated at USD 10 billion in FY25 and projected to grow to USD 15 billion by 2030. While the industry saw a temporary moderation in FY26 — with total equipment sales at 1,36,995 units, a ~2% decline over FY25, driven by a ~7% dip in domestic demand amid slower infrastructure execution — exports registered a robust ~32% growth over the same period, reinforcing the rising global competitiveness of Indian-manufactured construction equipment. ICEMA projects the industry to
return to growth in FY27, supported by the Government’s continued capex push, including a public capex outlay of ₹12.2 lakh crore, faster project execution, and the roll-out of the CIE Scheme.
Closing the Annual Session, ICEMA reiterated its commitment to working in close partnership with the Government and its member companies to strengthen the Construction Equipment industry’s contribution to India’s infrastructure-led growth, manufacturing self-reliance and global competitiveness — positioning the sector as a critical enabler of the country’s ambition to become a trillion-dollar manufacturing economy and a Viksit Bharat by 2047.
