India’s Construction Equipment Market Likely to Grow 5X by FY26

India Meets Global Safety and Emission Standards with Boosting Export Opportunities: V. Vivekanand

India’s construction equipment industry is expected to increase its global market share fivefold by FY26. Industry experts predict rising exports to developed countries, combined with trade agreements. For instance, the UK-India Free Trade Agreement (FTA) will drive this growth.

Exports to Rise Despite Weak Demand in SAARC

While demand from SAARC countries is falling, Indian exports to Europe, the UK, the US, and Australia are growing. V. Vivekanand, President of ICEMA and MD of Caterpillar India, said that India is now matching global safety and emission standards. “This opens more doors for exports,” he added.

Currently, India’s share in global construction equipment exports is less than 3%. In contrast, China and Japan hold around 12–15%. With upgraded standards, India can grow fivefold and even match these nations.

JCB India Predicts Strong Export Growth

Deepak Shetty, CEO & MD of JCB India, stated that exports could rise by over 15% in FY26. “We now follow Stage V emission norms, allowing us to export to Europe,” he said. The UK-India FTA also helps by reducing costs and improving engineer mobility.

Last year, JCB shipped nearly 70,000 tonnes of components from India to the UK.

Domestic Market Slows, but Outlook Remains Positive

In 2024–25, domestic sales increased by only 2.7%, primarily due to election-related delays. However, the total sales reached 1,40,191 units. With government support and a favourable monsoon expected, rural demand, which accounts for 65% of total use, is likely to increase.

India also sees a rising interest in related equipment, such as modern Trucks, which support infrastructure development across rural and urban areas.

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