India’s mining and construction equipment (MCE) sector is on course for dramatic growth, with its market value projected to nearly triple over the next five years.
According to a new report released by the Confederation of Indian Industry (CII) in partnership with global consultancy Kearney, the sector currently valued at $16 billion is expected to reach $45 billion by 2030, growing at a robust compound annual growth rate (CAGR) of 19 per cent.
A Strategic Push For Global Leadership
The Vision 2030 report, titled ‘Making India a Global Manufacturing Hub in the Mining and Construction Equipment Sector’, sets out an ambitious plan to establish India as a global leader in this critical industry.
The report further provides a detailed roadmap to position India at the forefront of mining and construction equipment manufacturing, while also significantly expanding its footprint in international markets.
India Leads Global Growth In MCE Sector
The report further identifies India as the fastest-growing market among the top six global MCE economies, surpassing major players such as the United States, Germany, and Japan.
With a 12 per cent CAGR over the past five years, India has rapidly emerged as a key growth engine for the global MCE landscape.
Globally, the mining and construction sector commands an $18 trillion market and contributes approximately 16 per cent to global GDP.
In India, the sector plays an even more significant role, contributing 22 per cent to national GDP, second only to China and employing more than 70 million people.
Economic Impact And Job Creation
The anticipated growth of India’s MCE sector promises far-reaching economic benefits.
By the end of the decade, the sector is likely to inject over $100 billion into the Indian economy, while directly and indirectly generating an estimated 20 million jobs.
Also Read: PM Modi Signals India’s Global Manufacturing Ambitions In Gujarat
This surge will further stem from increased activity in upstream and downstream industries, greater infrastructure investment, and enhanced tax revenue.
The report further notes that this expansion aligns closely with India’s broader national development goals, including infrastructure modernisation, energy security, and industrialisation.
Policy Recommendations For Realising Vision 2030
To achieve the sector’s full potential, the report outlines a set of critical policy and structural reforms. These include:
- Establishing a single nodal agency to oversee the MCE sector governance
- Designing a dedicated Production Linked Incentive (PLI) scheme for mining and construction equipment
- Expanding Free Trade Agreements (FTAs) to facilitate MCE exports
- Creating mutual recognition arrangements for Indian certification standards abroad
- Encouraging technology adoption and automation across the value chain
- Rationalising tax and import duty structures to make domestic manufacturing more competitive
A Clear Path Forward
With these reforms in place, India is well-positioned to transform into a global manufacturing hub for mining and construction equipment.
The report’s findings reinforce the critical role the sector will play in driving India’s economic progress and in establishing its presence in global supply chains.
As the country further continues to modernise its industrial base, the mining and construction equipment sector may well become a cornerstone of India’s global manufacturing ambitions.
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