India's construction equipment exports to surpass 20,000 units in FY27, driven by global demand

New Delhi: India's construction equipment exports are set to cross 20,000 units this financial year, growing 19% from fiscal 2026 and more than 70% from three years ago, with demand coming from Europe, the US, Australia and Southeast Asia, underscoring the country's increasing prowess as a manufacturer of globally competitive, precision-engineered products.

The Indian Construction Equipment Manufacturers' Association (ICEMA) estimates construction and infrastructure equipment exports to be 20,701 units in the fiscal year ending March 2027, up from 17,396 units in FY26, despite geopolitical headwinds. Exports rose about 32% last fiscal year, on a lower base. Exports were 11,990 units in FY24.

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The surge in exports is supported by three structural tailwinds, ICEMA president Deepak Shetty told ET. "India moved to Stage V emission norms for construction equipment last year, which opened up opportunities for exports to developed markets. This, along with the tariff concessions India is receiving under the newly inked FTAs (free trade agreements), is resulting in export demand shifting from Saarc (South Asian Association for Regional Cooperation) countries like Nepal, Sri Lanka and Bangladesh towards more developed markets," said Shetty, who is also managing director at market leader JCB India.

In fact, exports of high-value engineering goods from India are rising across sectors. Shipments rose by 5% to $24 billion in auto components, by 63% to Rs $4.6 billion in defence hardware and by 25% to $48 billion in electronics goods last financial year.