India’s construction equipment (CE) industry has achieved unprecedented year-on-year growth between April and October 2024, driven by robust government infrastructure spending and a surge in exports.
According to the Indian Construction Equipment Manufacturers’ Association (ICEMA), total sales for the period reached 73,845 units, surpassing 71,235 units in 2023 and 55,832 units in 2022—a significant 32% increase from 2022. Exports also saw a dramatic rise, climbing from 4,139 units in the first half of 2022 to 7,348 units in H1 2024.
This impressive growth came despite seasonal challenges, including the monsoon and election-related slowdowns in Q2. “Historically, demand picks up in the second half of the year, so we expect even stronger results from November to April,” said ICEMA President and Caterpillar India MD, V. Vivekanand.
Domestic demand has been fueled by increasing government investment in infrastructure, with all five key segments—road construction, earthmoving, concrete, material handling, and material processing—showing growth. “Unlike previous years, where specific segments drove the market, we’re seeing broad-based growth across multiple multimodal projects,” added Vivekanand.
Segment-wise, road construction equipment rose 5% year-on-year (YoY) and 65% compared to H1 2022. Earthmoving equipment grew 7% YoY and 31% over H1 2022, while concrete equipment posted a 1% YoY increase and 18% growth from 2022 levels. Although material handling dipped 12% YoY, it recorded a 55% increase over H1 2022.
India’s compliance with global safety and emission standards has bolstered export growth, now spanning over 120 countries, including mature markets. “With the global 'China Plus One' strategy gaining traction, Indian manufacturers are capturing market share as China’s influence declines,” said Vivekanand.
With Stage V emission norms set for implementation in January 2025, Indian manufacturers are already aligning with global standards, further enhancing competitiveness. ICEMA forecasts that exports, previously below USD 500 million five years ago, could approach USD 1 billion by the end of 2024.
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