India’s Mining and Construction Equipment (MCE) Sector Set to Triple by 2030, Unlocking a $45 Billion Opportunity
India’s Mining and Construction Equipment (MCE) sector is on the brink of a transformative decade. With projections pointing to a tripling of market size by 2030, the sector is set to unlock a $45 billion economic opportunity. This anticipated growth will not only bolster domestic infrastructure but also elevate India’s standing as a global manufacturing and export hub for heavy machinery.
Current Landscape and Growth Outlook
As of FY2024, the Indian MCE industry recorded sales of approximately 136,000 units, reflecting a strong compound annual growth rate (CAGR) of about 12% over the last ten years. Analysts estimate that the industry will reach a valuation of $25 billion by 2030, with overall sector potential reaching $45 billion, driven by exponential demand in mining, construction, and public infrastructure projects.
Key Growth Drivers
1. Infrastructure Development
The Indian government’s focus on infrastructure megaprojects such as Bharatmala (highways), Sagarmala (ports), smart cities, and dedicated freight corridors is creating massive demand for modern construction and mining machinery. These projects require advanced equipment to meet tight timelines and quality benchmarks.
2. Localisation and Manufacturing Push
India is aggressively advancing localisation efforts. Over the next 5 to 7 years, localisation levels in MCE manufacturing are expected to rise to 70–80%. This transition is forecasted to save approximately $3 billion annually in foreign exchange by reducing import dependency and boosting indigenous production.
3. Supportive Government Policies
The Production Linked Incentive (PLI) scheme and Make in India initiative have created a favourable policy environment for domestic and international manufacturers. By incentivising the production of key components like specialty steel and heavy-duty parts within India, these schemes are helping build a resilient domestic supply chain and reducing input costs.
Vision 2030: A Strategic Blueprint
India’s Vision 2030 for the MCE sector outlines a comprehensive plan to become the world’s second-largest market and a leading exporter of construction and mining machinery. Key objectives include:
Enhanced Local Manufacturing: Focused development of indigenous capability for critical components such as engines, hydraulics, transmissions, and electronics.
Export Growth: Establishing India as a cost-competitive export base for MCE, particularly targeting emerging markets in Africa, Southeast Asia, and Latin America.
Technological Innovation: Adoption of smart, autonomous, and energy-efficient equipment through partnerships with global leaders and investment in R&D.
Challenges and Strategic Solutions
While the future is promising, the path ahead is not without challenges. The sector must overcome:
Supply Chain Disruptions: Fluctuations in raw material availability and global trade dynamics can impact timelines and costs.
Skilled Workforce Shortage: There is a pressing need to train technicians and operators in advanced machinery handling, diagnostics, and repairs.
Infrastructure Bottlenecks: Improvement in logistics, ports, and road connectivity will be essential to ensure smooth transport of heavy equipment.