Strong demand from developed markets, FTAs and Stage V emission norms are helping Indian construction equipment manufacturers move up the global value chain.
Highlights
- India’s construction equipment exports are projected to cross 20,000 units in FY27, growing around 19% over FY26.
- Exports have increased more than 70% over the past three years.
- ICEEMA estimates exports at 20,701 units by March 2027, compared with 17,396 units in FY26.
- Exports had risen around 32% in FY26, from 11,990 units in FY24.
New Delhi: India’s construction equipment exports are set to cross the 20,000-unit mark in FY27, driven by rising demand from developed economies, new free trade agreements and improving manufacturing capabilities.
According to estimates by the Indian Construction Equipment Manufacturers’ Association (ICEMA), construction and infrastructure equipment exports could reach 20,701 units in the financial year ending March 2027, up from 17,396 units in FY26. This translates into projected growth of around 19% this fiscal year.
The sector has already recorded strong growth in recent years. Construction equipment exports have increased by more than 70% over the past three years. In FY26 alone, exports grew around 32%, although this came on a relatively lower base. India exported about 11,990 units in FY24.
Demand from developed markets is playing an increasingly important role in this expansion. Europe, the US and Australia, along with Southeast Asian countries, are emerging as key destinations for Indian-made construction equipment.
ICEMA President Deepak Shetty said three structural factors are supporting this export growth. India’s transition to Stage V emission norms for construction equipment, tariff concessions under newly signed free trade agreements and growing demand from developed economies are helping Indian manufacturers expand their presence in overseas markets.
The changing regulatory environment is also helping Indian manufacturers move up the value chain by producing globally competitive and precision-engineered equipment.
Export momentum has remained strong in the current fiscal as well. According to the report, shipments of construction equipment increased 29% during the first four months of FY27.
The trend is part of a broader rise in India’s exports of higher-value engineering products. The report noted that exports have also increased across segments such as auto components, defence hardware and electronics.
With developed markets accounting for an increasing share of demand, the construction equipment industry expects overseas shipments to maintain their growth trajectory through FY27.
