India's construction equipment sector needs to cut its ₹45,000 cr import bill: Kumaraswamy

The domestic construction equipment manufacturing industry needs to reduce its import dependence, Minister for Heavy Industries H D Kumaraswamy said on Tuesday.

Speaking at the Indian Construction Equipment Manufacturers' Association (ICEMA) annual session 2026, the minister said the domestic industry is the world's third largest, behind only China and the United States, with a market size of around Rs 97,500 crore in fiscal 2024-25.

“Equipment and components valued at around Rs 45,000 crore have a high import dependence,” Kumaraswamy said, adding that the Budget 2026-27 announced a scheme for the enhancement of construction and infrastructure equipment to promote the manufacturing of critical equipment and components. This will also “strengthen the domestic supply chain and reduce excessive dependency on imports,” the minister said.


Speaking to journalists on the sidelines, he said inter-ministerial consultations are underway and the scheme will be approved shortly. The industry is projected to grow and reach a market size of around Rs 2,28,000 crore by fiscal 2029-30, Kumaraswamy said.

According to the industry association, there was a temporary moderation in FY26, with total equipment sales at 1,36,995 units, a roughly 2% decline from FY25. This was due to a nearly 7% dip in domestic demand amid slower infrastructure execution. Exports, however, registered a robust 32% growth over the same period.

ICEMA projects the industry to return to growth in FY27, supported by the Centre's continued push through a public capital expenditure outlay of Rs 12.2 lakh crore, faster project execution and the rollout of the construction equipment manufacturing scheme.