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India's mining and construction equipment (MCE) sector is poised for a major leap, with projections indicating a growth from its current USD 16 billion valuation to USD 45 billion within the next five years. This forecast comes from a recent Vision Report jointly released by the Confederation of Indian Industry (CII) and global consultancy Kearney. The report lays out an ambitious Vision 2030 plan, positioning India as a global hub in the MCE industry. With India already the fastest-growing market among the top six global economies, surpassing even the US, Germany and Japan, this trajectory is expected to significantly enhance national GDP and employment.
India's mining and construction equipment (MCE) sector is anticipated to witness a sharp upswing over the next five years, with its market value expected to surge from USD 16 billion to USD 45 billion, as revealed in a collaborative report by the Confederation of Indian Industry (CII) and consultancy firm Kearney. Advertisement
Released earlier this week, the Vision Report, titled Making India a Global Manufacturing Hub in the Mining and Construction Equipment Sector, puts forth an ambitious Vision 2030. It aims to establish India as a global leader in the MCE domain, presenting a roadmap designed to unlock the sector's untapped potential.
India has now emerged as the fastest-expanding market for MCE among the world's top six economies, outpacing traditional giants such as the US, Germany and Japan. The report attributes this rapid growth to the country's strategic investments in infrastructure and industrial development.
The global mining and construction sector currently commands a colossal USD 18 trillion market and contributes approximately 16 per cent to global GDP. Within this landscape, India plays a significant role contributing 22 per cent to its national GDP, second only to China, and supporting more than 70 million jobs. Over the past five years, India's MCE market has grown at a compound annual growth rate (CAGR) of 12 per cent, firmly positioning the country as a critical player in the global ecosystem.
Looking ahead, the sector's expansion is forecasted to contribute over USD 100 billion to the Indian economy by FY30, generating an estimated 20 million jobs, both directly and indirectly. This growth is expected to have a cascading effect on upstream and downstream industries, while also strengthening the national tax base.
To transform this vision into reality, the report has recommended a series of structural and policy-level reforms. These include the creation of a single nodal agency to institutionalise governance, implementing a Production Linked Incentive (PLI) scheme specifically for the MCE sector, fast-tracking exports through Free Trade Agreements (FTAs), and establishing mutual recognition agreements for Indian certification standards. Additional suggestions include promoting technology-driven solutions and automation, as well as revisiting tax and import duty frameworks to boost global competitiveness.
By aligning policy, governance, and technological innovation, India stands to not only solidify its domestic capabilities but also emerge as a formidable global manufacturing hub. The sector's upward trajectory, backed by strategic reforms and international outreach, could catalyse broader economic transformation, job creation, and global influence in the years leading to 2030.
Source- PTI
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