Monsoon & infra push to drive construction equipment demand

June 2, 2025 | 0 Comment

With above-normal rainfall predicted and continued infrastructure focus, India’s construction equipment industry is poised for strong growth in FY25. Industry leaders from ICEMA and JCB India highlight optimism, export success, and long-term opportunities despite short-term challenges.

Construction - Freepik

The Indian construction equipment industry is expected to witness a rise in demand this year, driven by the prediction of ‘above normal’ rainfall and the government’s continued focus on infrastructure development, according to Deepak Shetty, President-designate of the Indian Construction Equipment Manufacturers Association (ICEMA) and CEO & MD of JCB India. Shetty expressed optimism that a strong monsoon would positively impact the rural market, where most construction equipment is used, and support double-digit growth for the industry.

He noted that the sector has grown by 26% over the past few years and that FY25 has been a year of strategic repositioning for the industry. Although the growth this year could have been higher than anticipated, Shetty remains hopeful about the industry’s long-term prospects, especially with India’s rising position as the fourth-largest economy in the world, which naturally supports sustained infrastructure development.

Supporting this outlook, ICEMA President V Vivekanand, also MD of Caterpillar India, shared that the industry showed resilience in FY24-25, recording modest growth of 3% and reaching a milestone of 1,40,000 units sold. Jaideep Shekhar, Convener of ICEMA’s Industry Analysis and Insights Panel, added that the near-flat growth was in line with expectations due to the general elections and new emission norms.

Highlighting JCB India’s performance, Shetty said that the company had a record-breaking year, exporting more than 10,000 machines to America and supplying equipment to around 130 countries globally. JCB, which began as a joint venture in 1979, now operates as a fully-owned subsidiary of the UK-based J.C. Bamford Excavators, with five factories in India manufacturing world-class equipment for both domestic and international markets.

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