India’s Construction Equipment Exports Surge 31.5% In FY26 Despite Domestic Slowdown: ICEMA

India’s construction equipment industry demonstrated resilience during FY26 by registering a strong 31.5 percent growth in exports despite softer domestic demand, according to the latest report released by the Indian Construction Equipment Manufacturers’ Association (ICEMA).

The report stated that the industry continued to remain stable even as slower infrastructure execution, project delays and liquidity challenges affected equipment demand across India. The sector remains the world’s third largest construction equipment market and is currently estimated at nearly $10 billion. Industry projections indicate the market could expand to $14.76 billion by 2030 with a compound annual growth rate of 8.3 percent.

During FY26, total equipment sales marginally declined by around 2 percent to 1,36,995 units. Domestic demand, excluding non-OEM exports, witnessed an estimated 7 percent drop across several equipment categories. Industry experts attributed this decline mainly to slower implementation of infrastructure projects on the ground.

Deepak Shetty, President of ICEMA and CEO and Managing Director of JCB India Ltd, said the temporary slowdown should not be viewed as a structural weakness in the sector. He pointed out that government capital expenditure continues to remain at historically high levels, but execution delays, land acquisition challenges and slower fund disbursement cycles impacted equipment purchases during the fiscal year.

The report also highlighted that export growth reflected the increasing global competitiveness of Indian-made construction equipment. Indian manufacturers are steadily strengthening their position in overseas markets with improved product quality, manufacturing capabilities and cost competitiveness.

According to ICEMA, delays in contractor payments, rising equipment costs due to CEV Stage V emission norms and inflation in crude oil and bitumen prices also added pressure on the domestic market during FY26.

However, the industry remains optimistic about long-term opportunities driven by investments in roads, railways, mining, housing, urban infrastructure and rural development projects across India.