India can emerge as a global mining and construction equipment manufacturing hub: Report
New Delhi, July 26
India has the potential to position itself as a global manufacturing and export hub for mining and construction equipment by accelerating localisation, strengthening technology adoption, boosting research and development, and implementing supportive policy reforms, a report has said.
The joint report released by the Confederation of Indian Industry (CII) and Boston Consulting Group (BCG) titled "Pressing the Throttle: How India's Mining and Construction Equipment Industry Can Support Domestic Ambitions and Become a Global Force", assesses the current state of India's MCE sector and lays out a roadmap to enhance domestic manufacturing, improve global competitiveness and support the country's long-term infrastructure and industrial growth.
Released at a time when India is witnessing record investments in infrastructure, mining, manufacturing and clean energy, the report said sustained capital expenditure across roads, railways, ports, airports, urban infrastructure, mining and renewable energy would create significant opportunities for the sector over the coming years.
According to the report, India's mining and construction equipment industry has grown into one of the world's fastest-expanding markets, with an estimated market size of $17 billion and an annual growth rate of 10-12 per cent. It projected that capital expenditure across MCE-linked sectors would rise from around Rs 5.5 lakh crore in 2025 to Rs 9-10 lakh crore by 2030, driven by the country's infrastructure development agenda.
The report noted that India's mechanisation intensity remains well below the global average, leaving considerable scope for higher equipment demand, improved productivity and wider adoption of advanced technologies.
It also highlighted that exports of mining and construction equipment have expanded significantly over the past decade, creating opportunities for Indian manufacturers to strengthen their presence in global markets. Emerging technologies such as automation, digitalisation, electrification and connected equipment are expected to reshape the industry and improve its competitiveness.
Commenting on the report, CII Director General Chandrajit Banerjee said the mining and construction equipment sector is central to India's infrastructure and industrial growth ambitions.
CII Mining & Construction Equipment Division Chairman Vivek Bhatia said the sector would play a pivotal role in supporting the vision of Viksit Bharat by enabling world-class infrastructure, manufacturing and mining.
Boston Consulting Group Managing Director and Partner Abhishek Bhatia said India's mining and construction equipment industry is at an important inflection point.
— IANS
Reader Comments
Good news for 'Make in India'! But we also need to focus on skill development for operating these advanced machines. Automation and digitalisation are great, but who will run them? Our workforce needs proper training. Otherwise it's just another tech gap.
$17 billion market with 10-12% growth... impressive numbers! But I'm cautiously optimistic. We've seen many reports before that didn't translate to ground reality. The key is actual execution - land acquisition, clearances, power supply, logistics. Let's see if we can overcome those hurdles this time.
As someone working in the construction sector, I can tell you our mechanisation intensity is indeed very low. We still rely too much on manual labour for many tasks. Moving to more equipment will improve productivity but we must ensure it doesn't displace workers without providing alternatives. 🇮🇳
Finally some strategic thinking about our mining and construction equipment sector! The Rs 5.5 lakh crore to Rs 9-10 lakh crore capex projection is huge. That kind of investment will create massive job opportunities if we get the domestic manufacturing ecosystem right. Make in India needs to succeed here! 🌟
Interesting report from CII and BCG. But one concern - are we really ready for automation and connected equipment? Our infrastructure in many mining areas is still basic. Power supply is unreliable, internet connectivity patchy. These are basics that need to be fixed first before we talk about high-tech manufacturing hub ambitions. 😊
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.