A joint report by the Confederation of Indian Industry (CII) and Boston Consulting Group (BCG) forecasts a significant surge in capital expenditure across sectors driving demand for mining and construction equipment (MCE). The report, titled "Pressing the Throttle: How India's Mining and Construction Equipment Industry Can Support Domestic Ambitions and Become a Global Force", projects that capital spending in MCE-linked sectors will climb from approximately Rs 5.5 lakh crore in 2025 to Rs 9-10 lakh crore by 2030.
Projected Growth in Capital Expenditure
According to the report, India's infrastructure development, manufacturing expansion, mining activities, and energy transition initiatives are key drivers of the sustained demand for MCE. The report states, "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." This projection underscores the immense opportunity for both domestic equipment manufacturers and exporters.
Under the Viksit Bharat roadmap, the MCE industry could expand substantially over the long term, reaching an estimated USD 180-200 billion by 2047. This growth would be fueled by both domestic demand and rising global exports.
India's MCE Market and Export Performance
The report highlights that India has already become one of the fastest-growing MCE markets worldwide. Domestic demand exceeded USD 17 billion in 2025, growing at an annual rate of 10-12 percent. India's export performance has also improved markedly, with MCE exports nearly tripling from USD 1.7 billion in 2015 to around USD 4.9 billion in 2025. This growth has transformed India from a net importer to a net exporter of mining and construction equipment.
Despite this progress, India still accounts for less than 4 percent of global MCE imports, leaving substantial room for export expansion. "The export headroom is significant. Globally, countries import around USD 150 billion worth of mining and construction equipment, but less than 4 percent of that demand is currently supplied by India," the report notes. It identifies Southeast Asia, Africa, the Gulf, and South America as the most promising near-term opportunities, particularly as companies diversify their supply chains away from China.
Additionally, the report points to India's relatively low mechanization intensity as a major growth driver. "Mechanisation intensity also remains below global benchmarks at roughly half the global level," it states, indicating significant potential for higher equipment demand and productivity gains.
Recommendations to Boost Global Competitiveness
To strengthen India's position as a global manufacturing and export hub for MCE, the report recommends a multi-pronged strategy. This includes deeper localisation of high-value components, greater investment in research and development, wider adoption of digital and low-emission equipment, building stronger supplier ecosystems, and fostering closer collaboration between government and industry. These measures are designed to enhance competitiveness and capture a larger share of the global market.
The CII-BCG report paints a promising picture for India's MCE sector, with robust domestic demand and export opportunities set to drive significant growth over the coming decades, aligning with the country's broader Viksit Bharat vision.
