Indian equipment exports jump 32% as domestic demand falls

That’s according to information from the Indian Construction Equipment Manufacturers’ Association (ICEMA).

Total equipment sales fell by around 2% to 136,995 units during the financial year, compared with 140,191 in 2024-25.

Domestic demand declined by around 7%, which ICEMA attributed to slower infrastructure execution and higher equipment prices following the introduction of CEV Stage V emissions standards in January 2025.

The association said the export growth highlighted the increasing competitiveness and international acceptance of equipment manufactured in India. More than 95% of machines sold in the country are also manufactured domestically, it added.

India’s construction equipment market was worth more than US$10 billion in 2025-26 and remains the third largest in the world (after the US and China).

Earthmoving equipment continued to dominate the market, accounting for nearly 71% of total sales (97,236 units) and excavator sales were relatively resilient despite the wider slowdown.

Road construction equipment was the strongest-performing segment, with sales increasing by around 6% year on year. ICEMA said demand came from roadbuilding, mining and aggregate applications.

Sales of concrete equipment remained stable, while material processing equipment recorded marginal growth. Material handling equipment experienced the sharpest decline amid weaker industrial and infrastructure activity.

Roads and highways remain the largest source of equipment demand in India, according to ICEMA. Mining is another significant market, while railway modernisation, metro expansion, housing, airports, ports and urban infrastructure are also generating demand.

ICEMA said variations in the pace of project awards, land acquisition and the introduction of the new emissions standards had affected equipment purchasing decisions during the year.

Meanwhile, commodity prices, input costs and disruption to international supply chains also presented challenges.

Nonetheless, the association remains positive about the market’s prospects over the next two to three years. It expects demand to benefit from the Indian government’s ₹12.2 lakh crore (US$138 billion) capital expenditure allocation, increased mechanisation and investment across roads, railways, mining, housing and logistics infrastructure.

ICEMA said a recovery in sales during the final quarter of 2025-26, combined with sustained public investment, provided a foundation for long-term growth, although project execution challenges remain in the short term.