Union Minister for Heavy Industries and Steel HD Kumaraswamy on Wednesday said the government’s ₹12.2 lakh crore capital expenditure allocation in the Union Budget 2026 to 27 will significantly accelerate India’s construction equipment industry and position it for global leadership.
Addressing the Annual Construction Equipment Finance Conclave in New Delhi, the minister underlined that sustained public investment and a resilient financing framework are central to India’s infrastructure and manufacturing expansion.
₹12.2 Lakh Crore Capex Signals Multi-Year Infrastructure Push
Kumaraswamy described the ₹12.2 lakh crore public capital expenditure as a historic and structural commitment that spans highways, railways, logistics corridors, ports, renewable energy infrastructure, and urban development.He stated that India is currently the world’s fourth-largest economy and is on track to become the third-largest in the coming years. According to him, this trajectory is being driven by infrastructure expansion, manufacturing depth, and continued capital investment.
The minister highlighted that the infrastructure thrust under the leadership of Narendra Modi is focused on building long-term industrial capacity alongside physical infrastructure assets.
Financing Ecosystem Key to Sectoral Multiplier Effect
Emphasizing the theme of the conclave, titled “Building a Resilient Infrastructure and Construction Equipment Financing Ecosystem: Towards Building Domestic Strength for Global Reach,” Kumaraswamy said a robust financing architecture is critical to sustaining growth momentum.He noted that a strong construction equipment financing ecosystem would extend benefits beyond manufacturers. It would also empower contractors, MSMEs, logistics operators, and infrastructure developers, generating multiplier effects across the economy.
Ministry of Heavy Industries Targets Manufacturing Depth
The minister outlined the proactive role of the Ministry of Heavy Industries in strengthening the construction equipment ecosystem through targeted policy measures and incentive frameworks.He referred to the proposed Scheme for Enhancement of Construction and Infrastructure Equipment, aimed at boosting domestic manufacturing of high-value and technologically advanced equipment.
According to Kumaraswamy, the initiative is designed to build strategic capability within the country, enabling manufacturers to scale operations, innovate securely, and compete globally.
Indian Construction Equipment Market Set for Expansion
Citing industry estimates, Kumaraswamy said the Indian construction equipment market is currently valued at approximately $9.5 billion. The sector recorded sales of over 1,40,000 units in FY25 and has the potential to more than double by 2030.The industry has set an ambitious target of evolving into a $25 billion market by the end of the decade, reflecting strong growth expectations backed by sustained infrastructure spending.
Emerging Technologies Redefining Operations
The minister also highlighted the transformative impact of emerging technologies in the sector. Automation, AI-enabled fleet management, predictive maintenance, and electric and hybrid construction equipment are reshaping operational efficiency and sustainability standards.He added that government initiatives such as PM E-DRIVE are accelerating the transition toward cleaner and more sustainable industrial growth.
Kumaraswamy concluded by calling for collective action across stakeholders to position India as a global hub for construction equipment manufacturing and financing, supported by strong domestic capabilities and sustained capital investment.
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