India’s Construction Equipment Sales Decline in FY26 Despite Strong Export Growth: ICEMA

India’s construction equipment industry witnessed a slight slowdown during FY26 as total equipment sales declined amid delays in infrastructure execution, funding constraints and slower project clearances across key sectors. According to the Indian Construction Equipment Manufacturers’ Association (ICEMA), total dispatches during FY26 stood at 1,36,995 units compared to 1,40,191 units recorded in the previous financial year.

Despite the moderation in domestic demand, the industry delivered strong export performance with overseas shipments rising 32 per cent year-on-year. Industry experts believe the export growth reflects the increasing global acceptance of Indian-made construction equipment and the improving manufacturing capabilities of domestic companies.

Speaking about the industry outlook, ICEMA President Deepak Shetty said the slowdown should not be viewed as a structural weakness. He noted that government capital expenditure on roads, railways, metros and urban infrastructure continues to remain strong, but delays in project execution and slower fund disbursement cycles impacted equipment demand during the year.

Domestic sales during FY26 declined around 7 per cent to 1,13,229 units, reflecting cautious purchasing trends across the infrastructure and construction ecosystem. Among the various equipment categories, earthmoving equipment continued to dominate the market with a 71 per cent share. Sales in this segment stood at 97,236 units.

Road construction equipment emerged as one of the few categories to report positive growth during the financial year, increasing 6.3 per cent to 7,445 units. Industry analysts said continued investments in highways and road connectivity projects supported demand in this segment.

ICEMA also highlighted challenges such as land acquisition delays, slower contractor payments, rising raw material costs and the implementation of CEV Stage V emission norms, which increased equipment prices from January 2025 onward.

India currently remains the world’s third-largest construction equipment market. Industry estimates project the sector to reach USD 14.76 billion by 2030, supported by long-term infrastructure expansion and growing urbanisation across the country.