India’s construction equipment sector is heading for a significant jump in global rankings. The Indian Construction Equipment Manufacturers’ Association (ICEMA) has said the country is on track to become the world’s second-largest construction equipment market by 2030. Right now, India sits at third position globally, with the United States and China ahead of it. The industry sold 136,995 units in FY2026 and is now aiming to reach around 250,000 units annually by the close of this decade.

ICEMA President Deepak Shetty put it plainly: “We expect that by 2030, we should be very close to around 250,000 units. The milestone that we are talking about is that today we are the third-largest construction equipment market in the world, and we expect to move to the second-largest market by 2030.”

FY26 Was a Rough Year—But the Tide Turned

The industry did not have an easy run in the last financial year. Domestic demand was slow, election-related disruptions added to the uncertainty, equipment prices went up after the move to Stage 5 emission norms, and the Red Sea crisis created supply chain headaches. Domestic sales fell close to 7% through the year.

What saved the overall numbers was exports. Shipments abroad grew by more than 30% in FY26, which pulled the industry’s total decline down to around 2%. Things also started looking better toward the end of the year — the fourth quarter saw demand pick up, supported by more road project awards and continued government spending on infrastructure.

“We have seen some signs of recovery in the latter part of the fiscal,” Shetty said. He added that government attention on roads, railways, mining, and rural infrastructure will keep supporting the sector going forward.

Indian Machines Now Reaching 125+ Countries

The export story has been the standout chapter for this industry in recent years. Construction equipment made in India is now being shipped to more than 125 countries, including established markets in Europe — something that would have seemed ambitious not long ago.

Shetty did not hold back on this one: “It is a very proud moment that machines engineered and manufactured in India are today going to more than 125 countries. A majority of them are going to the developed part of the world, which gives confidence about the quality of the products and how they are meeting the requirements of global customers.”

For the current financial year, ICEMA expects exports to grow by at least 20%, while domestic sales are projected to go up around 7%.

Stage 5 Norms Are Helping; So Are Trade Deals

India’s shift to Stage 5 emission norms has worked in the industry’s favour when it comes to cracking European markets, since similar standards are followed there. Free trade agreements with the UAE and Australia are also expected to give exports an additional push in the coming period.

That said, ICEMA has pointed out that localizing more components and building stronger supply chains within the country remains critical, especially for high-technology equipment like excavators, which still depend on imported parts. The association has also made a case for government incentives to bring in fresh investment into the sector, which would help shift more of the supply chain to India and build the country’s position as a serious global manufacturing and export base for construction equipment.