Capital spending in mining, construction equipment-linked sectors to rise to Rs 9-10 lakh crore by 2030: CII-BCG
New Delhi, July 26
Capital expenditure across sectors driving demand for mining and construction equipment is projected to rise from about Rs 5.5 lakh crore in 2025 to Rs 9-10 lakh crore by 2030, creating a long-term growth opportunity for domestic manufacturers and exporters, according to a joint report by the Confederation of Indian Industry and Boston Consulting Group.
The report, titled "Pressing the Throttle: How India's Mining and Construction Equipment Industry Can Support Domestic Ambitions and Become a Global Force", said India's infrastructure, manufacturing, mining and energy transition plans are expected to drive sustained demand for mining and construction equipment over the coming decades.
"The domestic runway remains long. India's Viksit Bharat trajectory implies a build-out across infrastructure, manufacturing, critical minerals, and the energy transition that runs for decades. Capital expenditure in MCE-linked sectors is expected to rise from about INR 5.5 lakh crore in 2025 to INR 9-10 lakh crore by 2030," the report said.
It added that India's Mining and Construction Equipment industry could expand significantly over the long term, reaching USD 180-200 billion by 2047 under the Viksit Bharat roadmap.
"On the Viksit Bharat trajectory, the MCE sector could reach an estimated USD 180-200 billion by 2047 driven by domestic demand and global exports," the report said.
The report noted that India has already emerged as one of the world's fastest-growing MCE markets, with domestic demand exceeding USD 17 billion in 2025 and growing at 10-12 per cent annually. It also highlighted the country's improving export performance.
"India's MCE exports have nearly tripled over the last decade, from USD 1.7 billion in 2015 to around USD 4.9 billion in 2025... The country crossed from net importer to net exporter of mining and construction equipment," it said.
Despite that progress, the report said India still accounts for less than 4 per cent of global mining and construction equipment imports, leaving substantial room for export growth.
"The export headroom is significant. Globally, countries import around USD 150 billion worth of mining and construction equipment, but less than 4 per cent of that demand is currently supplied by India," it said, adding that Southeast Asia, Africa, the Gulf and South America offer the biggest near-term opportunities as companies diversify supply chains beyond China.
The report also pointed to India's relatively low level of mechanisation as another major growth driver.
"Mechanisation intensity also remains below global benchmarks at roughly half the global level," it said, indicating significant scope for higher equipment demand and productivity gains.
To strengthen India's position as a global manufacturing and export hub, the report recommended deeper localisation of high-value components, greater investment in research and development, wider adoption of digital and low-emission equipment, stronger supplier ecosystems and closer collaboration between government and industry.
— ANI
Reader Comments
As an investor, this is encouraging. The projection of ₹9-10 lakh crore capex by 2030 is substantial. But I'm curious about the execution challenges - land acquisition, environmental clearances, and skilled labor shortages remain bottlenecks. Hope the report addresses these practical issues.
The mechanisation part is key! India's construction sites still rely too much on manual labor. We need to upskill our workforce to operate modern equipment. Also, the focus on low-emission equipment is welcome - can't have development at the cost of our environment. Gaon ki hawa bhi saaf rakhni hai!
I work in the construction equipment sector, and let me tell you, the demand is real. 😊 But we're still importing too many high-value components like engines and hydraulics. The report rightly calls for deeper localisation. We have the talent - just need more R&D investment and policy support. Jai Hind!
While this is positive, I worry about the environmental impact. Mining and construction are already causing deforestation and pollution in many areas. We need stricter safeguards and rehabilitation plans. Viksit Bharat shouldn't come at the cost of our forests and rivers. Let's build responsibly 🙏
Excellent! Our exports to Africa and Southeast Asia will be a game-changer. We've already seen how Indian companies are winning contracts in these regions. The key now is to build a robust supplier ecosystem and reduce dependence on Chinese components. Time to show the world what India can do! 💪
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