Gadkari Announces New Bill to Strengthen India’s Construction Equipment Industry

Union Minister for Road Transport and Highways Nitin Gadkari has announced that the central government is preparing a new Bill to strengthen India’s construction equipment (CE) industry. The legislation aims to boost domestic manufacturing, reduce dependence on Chinese imports, and introduce clear policy frameworks to help Indian manufacturers compete globally.

Speaking at the annual session of the Indian Construction Equipment Manufacturers’ Association (ICEMA), Gadkari said the new Bill will establish regulatory standards for the industry. Once approved, it will simplify compliance and address the challenges currently faced by equipment makers and component manufacturers. He emphasized that the government’s goal is to ensure a level playing field for domestic companies while promoting sustainable growth in the sector.

India’s construction equipment market, valued at around $9 billion, has been facing intense competition from low-cost Chinese imports. In some categories, Chinese products account for nearly 25% of the market share. Gadkari highlighted the need to protect Indian manufacturers through policy support and financial incentives. He also proposed offering zero-interest loans for buyers of equipment powered by alternative fuels and encouraging OEMs to adopt flex engines and clean fuel technologies.

The minister assured that infrastructure development remains a top government priority. He stated that projects worth ₹2 lakh crore have already been awarded, with an additional ₹5 lakh crore expected by the end of the year. The ministry’s long-term goal is to award road projects worth ₹10 lakh crore annually, which will directly boost demand for construction machinery.

Gadkari also urged the industry to invest in high-capacity machinery for tunnel and pre-cast construction projects, noting that India is currently building tunnels worth ₹3 lakh crore. He further emphasized skill development and suggested regional-level training programs for equipment operators to enhance productivity and safety.

The upcoming Bill is expected to mark a significant policy shift for the construction equipment industry—encouraging innovation, promoting sustainable manufacturing, and reducing import dependency. With this initiative, the government hopes to position India as a global hub for construction technology and machinery production.