India’s Mining & Construction Equipment Sector Set to Reach $45 Billion by 2030

India’s mining and construction equipment (MCE) sector is poised for significant growth, with its market size projected to expand from the current $16 billion to $45 billion over the next five years, according to a new report jointly released by the Confederation of Indian Industry (CII) and global consultancy Kearney. 

Titled "Making India a Global Manufacturing Hub in the Mining and Construction Equipment Sector", the Vision 2030 report outlines a comprehensive roadmap for transforming India into a global leader in the MCE domain. The report forecasts a compound annual growth rate (CAGR) of 19%, driven by robust demand and strategic policy interventions. 

India currently stands as the fastest-growing market among the top six global MCE economies, having outpaced major players such as the United States, Germany, and Japan. Over the past five years, the Indian MCE sector has registered a CAGR of 12%, underscoring its increasing importance in the global arena. 

Globally, the mining and construction equipment industry is valued at $18 trillion and contributes approximately 16% to the global GDP. In the Indian context, the sector is a critical pillar of national development, accounting for 22% of the country’s GDP — second only to China — and supporting more than 70 million jobs across various verticals. 

The report estimates that the sector’s expansion could add over $100 billion to India’s economy by FY30 and create up to 20 million direct and indirect employment opportunities. This projected impact will stem from the accelerated growth of associated industries, enhanced job creation, and increased tax revenues. 

To unlock the full potential of the sector and achieve the Vision 2030 goals, the report recommends a series of structural and policy reforms. Key suggestions include the creation of a dedicated nodal agency to oversee the sector, introduction of a Production Linked Incentive (PLI) scheme specific to MCE, boosting exports through Free Trade Agreements (FTAs), ensuring global recognition of Indian certification standards, promoting adoption of advanced technologies and automation, and rationalising existing tax and import duty structures.