India’s mining and construction equipment (MCE) sector is set for substantial growth, with localisation levels projected to rise to 70-80% over the next 5-7 years, according to a report by ICRA. This increase in domestic production could result in savings of nearly USD 3 billion in foreign exchange annually and boost India’s global cost competitiveness, enhancing export prospects. The industry, driven by India’s infrastructure development, has already achieved a compound annual growth rate (CAGR) of 12% from FY2015 to FY2024, reaching sales of 1.36 lakh units in FY2024.
ICRA forecasts that the mining and construction equipment sector could become a USD 25 billion market by 2030. However, reaching this milestone will require a strong supply chain ecosystem to support the industry’s Vision 2030, which aims to position India as the world’s second-largest MCE market and a global manufacturing and export hub.
Several factors are accelerating the localisation push. Government initiatives like the Production Linked Incentive (PLI) scheme for sectors such as specialty steel and auto components are encouraging domestic production. Additionally, global geopolitical shifts, including the China+1 strategy, are driving more investments into India.
Currently, the MCE industry relies heavily on imports, with about 50% of its components coming from countries like China, Japan, South Korea, and Germany, along with the need for key raw materials such as specialty steel.
ICRA Limited was established in 1991 by prominent financial and investment institutions, commercial banks, and financial services companies as an independent and professional investment information and credit rating agency.
Today, ICRA and its subsidiaries collectively constitute the ICRA Group of Companies (Group ICRA). ICRA is a public limited company, with its shares listed on both the Bombay Stock Exchange and the National Stock Exchange. The international credit rating agency Moody’s Investors Service holds the largest share in ICRA.
