Construction Equipment Financing Key to India’s Infrastructure Growth, Says Kumaraswamy

Union Minister for Heavy Industries and Steel H D Kumaraswamy has underscored the importance of building a strong and resilient construction equipment financing ecosystem to accelerate India’s infrastructure and manufacturing ambitions. Addressing the 6th Annual Construction Equipment Finance Conclave in New Delhi, the Minister said that access to structured and affordable finance will play a decisive role in sustaining the country’s growth momentum.

He noted that India is currently the world’s fourth largest economy and is on track to become the third largest in the coming years. This growth, he said, is being driven by large scale infrastructure expansion, deepening manufacturing capabilities and sustained public capital expenditure. The Union Budget 2026 to 27 has earmarked Rs 12.2 lakh crore towards capital expenditure, reinforcing the government’s long term infrastructure strategy across highways, railways, logistics corridors, ports, renewable energy and urban development.

Kumaraswamy also highlighted the proposed Scheme for Enhancement of Construction and Infrastructure Equipment aimed at strengthening domestic manufacturing of technologically advanced and high value equipment. The initiative seeks to build strategic capability within India and enhance global competitiveness of domestic manufacturers.

According to industry estimates cited by the Minister, the Indian construction equipment market is currently valued at around 9.5 billion dollars and has the potential to more than double by 2030. The sector recorded sales of over 1,40,000 units in FY25 and has set an ambitious target of evolving into a 25 billion dollar market by the end of the decade.

Emphasising the role of technology, he said automation, artificial intelligence enabled fleet management, predictive maintenance and electric and hybrid equipment are redefining operational efficiency. A robust financing architecture, he added, will empower manufacturers, contractors, MSMEs and infrastructure developers, positioning India as a global hub for construction equipment manufacturing and finance.