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India's planned infrastructure investment pipeline of nearly INR 10 lakh crore by 2030 is expected to significantly boost demand for mining and construction equipment (MCE), according to a joint report by the Confederation of Indian Industry (CII) and Boston Consulting Group (BCG). The report highlights that sustained investments across roads, railways, airports, ports, manufacturing, mining and renewable energy will require advanced earthmoving, material handling and specialised construction machinery. While the sector is poised for long-term growth, the report says India must strengthen domestic manufacturing, technology adoption, exports and skill development to emerge as a global hub for construction and mining equipment.
India's ambitious infrastructure expansion programme, backed by a projected capital investment pipeline of INR 9–10 lakh crore by 2030, is expected to create unprecedented demand for mining and construction equipment (MCE), according to a report jointly released by the Confederation of Indian Industry (CII) and Boston Consulting Group (BCG).
The report, Pressing the Throttle: How India's Mining and Construction Equipment Industry can Support Domestic Ambitions and Become a Global Force, identifies infrastructure development, manufacturing expansion, mining mechanisation and the clean energy transition as the four structural drivers that will sustain equipment demand over the coming decade. It notes that capital expenditure on sectors linked to construction equipment has already increased from around INR 2.1 lakh crore in 2020 to nearly INR 5.5 lakh crore in 2025, with investments expected to almost double by the end of the decade.
According to the report, roads and highways remain the single largest demand generator, supported by the Ministry of Road Transport and Highways' allocation of INR 2.9 lakh crore and the planned expansion of the national highway network to nearly 2 lakh kilometres over the next five years. Railways are also expected to remain a major contributor, with a record capital expenditure of INR 2.5 lakh crore supporting freight corridors, high-speed rail projects, station redevelopment and track expansion. Together with investments in ports and airports, these projects will require large fleets of earthmoving equipment, tunnel boring machines, piling rigs, cranes, pavers and specialised material-handling systems.
Beyond infrastructure, the report highlights manufacturing as another major source of equipment demand. India's objective of increasing manufacturing's share in GDP from 14% to 25% under the Viksit Bharat vision, supported by Production Linked Incentive (PLI) schemes and industrial corridor development, is expected to drive significant investments in factories, warehouses and logistics parks. These projects will require extensive site preparation, foundation work, concrete equipment and heavy lifting machinery.
Mining is expected to become increasingly equipment-intensive as India expands production of coal, iron ore and critical minerals. The report projects coal output to rise from around 1 billion tonnes currently to 1.5 billion tonnes by 2030, while underground mining, automation and mechanisation are expected to accelerate demand for continuous miners, longwall systems, underground loaders and autonomous haulage equipment. Improved mechanisation will also help enhance productivity and worker safety across mining operations.
The report notes that India's construction equipment industry has transformed from an import-dependent market into a manufacturing base that now exports more equipment than it imports. However, it cautions that domestic manufacturers must significantly increase investments in research and development, localisation and advanced technologies to compete globally. Strengthening exports to Southeast Asia, Africa, the Gulf and South America, alongside greater adoption of automation, electric equipment and digital technologies, will be essential for the industry's next phase of growth.
To support this transition, CII and BCG recommend expanding production-linked incentives, promoting domestic procurement, strengthening the rare earth and critical minerals ecosystem, accelerating mining reforms and improving skill development. The report concludes that closer collaboration between government, industry, technology providers and financial institutions will be crucial to position India as a globally competitive manufacturing hub for mining and construction equipment while supporting the country's long-term infrastructure ambitions.
Source- BCG
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