India’s mining and construction equipment (MCE) sector is poised for remarkable growth, with its value expected to skyrocket from ₹1,36,480 crore (US$ 16 billion) in 2023 to ₹3,83,850 crore (US$ 45 billion) by 2030. This ambitious projection, outlined in the Vision 2030 report jointly prepared by the Confederation of Indian Industry (CII) and consulting firm Kearney, highlights a 19% compound annual growth rate (CAGR). This signals a transformative decade ahead for one of India’s key industrial pillars.

The report emphasizes that India is currently the fastest-growing MCE market among the top six global economies, overtaking nations like the United States, Germany, and Japan. With a rapidly growing infrastructure network and increasing demand for machinery, India’s mining and construction equipment sector is on a solid upward trajectory, becoming a critical engine of growth for the broader economy.

The mining and construction sector globally holds a massive US$ 18 trillion market and contributes 16% to global GDP. In India alone, the sector contributes 22% to the national GDP, which is second only to China, and supports more than 70 million jobs. These statistics underline the sheer scale and importance of this sector in shaping India’s economic destiny.

According to the Vision 2030 projections, the expansion of the MCE sector will contribute over ₹8,53,000 crore (US$ 100 billion) to the Indian economy by FY30. It is also expected to generate 20 million new jobs, both directly and indirectly. This employment boom is expected to come from the expansion of upstream and downstream industries, robust growth in demand for construction and mining services, and the broader multiplier effect on tax revenues and ancillary sectors.

To fully unlock this potential, the Vision 2030 report recommends sweeping structural and policy reforms. One of the cornerstone suggestions is the institutionalisation of governance through a single nodal agency, which would centralise efforts and streamline operations across the sector. This would help reduce bureaucratic delays, improve compliance, and create a more efficient regulatory environment.

Another vital recommendation is the introduction of a Production Linked Incentive (PLI) scheme tailored specifically for the mining and construction equipment sector. Such a scheme could boost manufacturing capabilities, attract global investments, and help establish India as a global manufacturing hub in this space. This aligns with the government’s Make in India and Atmanirbhar Bharat (self-reliant India) initiatives.

The report also highlights the need to accelerate MCE exports through Free Trade Agreements (FTAs). By negotiating favourable FTAs, India could gain competitive access to international markets, increase its MCE export footprint, and balance trade deficits. The sector currently has the potential to expand its reach across Asia, Africa, and South America, where infrastructure development remains a priority.

A significant bottleneck in international trade is the lack of mutual recognition of Indian certification standards. The report proposes establishing mutual recognition arrangements with trading partners to ease export restrictions and enhance trust in Indian-manufactured machinery.

Furthermore, the Vision 2030 roadmap promotes the adoption of advanced technologies and automation. The sector must modernise rapidly by integrating AI, IoT, machine learning, predictive maintenance, and smart diagnostics. This will not only improve productivity and safety but also make Indian equipment globally competitive.

Rationalising tax structures and import duties is another area identified for improvement. The report suggests creating a more uniform and industry-friendly taxation system that encourages investment and reduces the overall cost burden on MCE manufacturers and users. Simplifying GST rates, reducing customs duties on essential components, and incentivising R&D investments are specific action points.

Currently, India's equipment manufacturers face challenges such as high capital costs, fragmented supply chains, dependence on imports for key components, and outdated technologies. Addressing these hurdles through government support, targeted subsidies, and private sector partnerships will be crucial in meeting the 2030 goals.

India’s emergence as a top MCE market is also driving significant private investments in R&D and innovation. Several Indian and foreign companies are ramping up local manufacturing and building technology partnerships to cater to both domestic and international demand.

The MCE sector’s ripple effect on other industries is profound. From steel and cement to power, oil, and transport, the sector fuels demand across multiple verticals. The report estimates that for every rupee invested in the MCE sector, ₹3.5 worth of economic activity is generated in related sectors, thereby underscoring its catalytic role in India’s growth story.

The report also outlines a vision to promote skilling and workforce development, especially as the sector increasingly moves towards automation and mechanisation. Investing in training programs, vocational education, and digital literacy will ensure the workforce remains future-ready.

In summary, India’s mining and construction equipment industry is heading towards a monumental transformation. The sector is not just expanding in size but is also evolving in sophistication, efficiency, and global competitiveness. The Vision 2030 report by CII and Kearney offers a clear and ambitious blueprint that, if implemented effectively, can position India as a global powerhouse in the MCE landscape.

This transformative growth from ₹1.36 lakh crore to ₹3.84 lakh crore by 2030, supported by 20 million new jobs, strategic policy interventions, export focus, and technological innovation, will elevate India to new heights of industrial development and economic leadership.

As India charts its course to 2030, the mining and construction equipment sector will undoubtedly play a pivotal role in realising the country’s dreams of infrastructure excellence, job creation, and sustainable industrial growth.

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