India's mining & construction equipment industry set to grow 10-12% annually; capex to touch ₹10 lakh crore by 2030: CII-BCG report
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India's mining & construction equipment (MCE) industry has reached an estimated market size of $17 billion and is expected to expand at an annual rate of 10-12%, supported by a sharp rise in infrastructure and mining investments, according to a joint report by the Confederation of Indian Industry (CII) and Boston Consulting Group (BCG).
The report, Pressing the Throttle: How India's Mining and Construction Equipment Industry Can Support Domestic Ambitions and Become a Global Force, projects capital expenditure across MCE-linked sectors to increase from around ₹5.5 lakh crore in 2025 to ₹9-10 lakh crore by 2030, driven by sustained investments in roads, railways, ports, airports, urban infrastructure, mining and renewable energy.
Released by the CII National Mining & Construction Equipment (MCED) Division in partnership with BCG, the report outlines a roadmap to strengthen domestic manufacturing, deepen localisation, accelerate technology adoption and position India as a global manufacturing and export hub for mining and construction equipment.
According to the report, India's MCE industry is among the fastest-growing globally. While the domestic market is valued at about $17 billion, it remains significantly underpenetrated compared with global peers due to relatively low mechanisation levels, creating substantial headroom for future equipment demand and productivity gains.
The report notes that the global mining and construction equipment industry is currently valued at $420-440 billion and is expected to grow at a 4-5% CAGR over the next five years. Asia-Pacific remains the largest demand centre, accounting for nearly 55% of global demand, with the region expected to expand at a 6-7% CAGR.
India's share of the global MCE market has doubled from around 2.5% a decade ago to nearly 4% and is projected to increase further to around 6.5% over the next five years, making it one of the world's fastest-growing major markets.
The report attributes India's growth to four structural drivers, including sustained public infrastructure investment, rising mining activity, increasing mechanisation and the expansion of domestic manufacturing capabilities. It highlights that India's mining and construction sector is estimated to contribute around $430 billion to the economy in 2025, or nearly 11% of GDP, while supporting the livelihoods of more than 70 million people across the value chain.
Commenting on the findings, Chandrajit Banerjee, Director General, CII, said the mining and construction equipment sector is central to India's infrastructure and industrial ambitions.
"The Mining & Construction Equipment sector is integral to India's infrastructure and industrial growth ambitions. Its next phase of growth will require deeper collaboration across industry and government, alongside greater investment, innovation, skill development and ease of doing business. This report provides timely insights into the actions needed to build a resilient, future-ready and globally competitive sector and strengthen India's position in the global MCE landscape," he said.
Vivek Bhatia, Chairman, CII Mining & Construction Equipment Division, said the sector will play a pivotal role in achieving India's long-term development goals.
"India's vision of Viksit Bharat will be built on the strength of world-class infrastructure, manufacturing and mining. The Mining & Construction Equipment industry has a pivotal role in enabling this transformation. The CII-BCG report provides a strategic roadmap to strengthen domestic manufacturing, accelerate localisation, foster innovation and position India as a globally competitive manufacturing and export hub for Mining & Construction Equipment," he said.
According to Abhishek Bhatia, Managing Director & Partner at Boston Consulting Group, rapid advances in automation, electrification, digitalisation and connected equipment present Indian manufacturers with an opportunity to build globally competitive capabilities.
The report recommends a coordinated industry-government approach focused on strengthening localisation of high-value components, accelerating the adoption of digital and low-emission equipment, increasing investments in research and development, developing globally competitive supplier ecosystems, expanding exports, and creating an enabling policy framework to support long-term growth.