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India is preparing a new bill aimed at strengthening its construction equipment (CE) industry by reducing dependency on low-cost imports, particularly from China. The industry has shown modest growth, with a 3% rise in equipment sales and a 10% increase in exports last fiscal. Industry leaders are calling for a sharper focus on green fuels, indigenous advanced machinery, and mandatory operator training. With INR 2 lakh crore in projects already awarded and INR 5 lakh crore more expected soon, the sector is set for steady expansion backed by strong infrastructure momentum.
The government is working on a new legislation to support India's construction equipment (CE) industry, aiming to reduce dependency on cheaper imports especially from China and improve domestic competitiveness. The proposed bill is expected to introduce clear technical standards and address operational gaps in the sector, aligning with the country's infrastructure ambitions. Advertisement
This move follows consistent demand from the industry for structured regulation that promotes sustainable technologies, quality standards, and indigenisation of high-capacity equipment. The government has acknowledged these concerns and is pushing for a legal framework that supports both market growth and long-term self-reliance.
The sector has been recovering from a brief slowdown caused by the cancellation of a major infrastructure initiative earlier this year. However, project momentum has picked up sharply. Contracts worth INR 2 lakh crore have already been awarded, and an additional INR 5 lakh crore in project awards is expected before year-end taking the total to INR 7 lakh crore for the current financial year. The government intends to maintain this pace with a target of awarding INR 10 lakh crore worth of infrastructure projects annually going forward.
In the last financial year, CE sales grew by 3%, reaching 1,40,191 units. Meanwhile, exports rose by approximately 10%, reflecting increasing demand for Indian-made equipment in global markets. This growth, although steady, highlights the need for further intervention to keep up with infrastructure targets and global competition.
Sustainability has become a central theme across the industry. Key stakeholders are pushing for greater adoption of electric, ethanol, and hydrogen-powered equipment, arguing that cleaner fuels are both environmentally necessary and economically viable. The industry has also raised concerns about delays in tunnel and pre-cast infrastructure projects due to a lack of modern, high-capacity machinery. Leaders are urging the government to facilitate indigenous development of such equipment, especially for specialised tasks like tunneling, where imported machines currently dominate.
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