India emerges as the fastest-growing MCE market globally, with a projected 19% CAGR and a $100 billion economic impact by FY2030.
India’s mining and construction equipment (MCE) industry is set to witness unprecedented growth, with the market size projected to nearly triple from $16 billion in 2024 to $45 billion by 2030, according to a joint report released by the Confederation of Indian Industry (CII) and global consultancy firm Kearney.
Titled “Vision 2030: Transforming the Mining and Construction Equipment Sector in India”, the report highlights a strong projected compound annual growth rate (CAGR) of 19%, making India the fastest-growing MCE market among the world’s top six economies—surpassing established markets like the United States, Germany, and Japan.
India Leads Global Growth in Mining & Construction Equipment
India’s MCE sector has already demonstrated significant momentum, registering a 12% CAGR over the past five years. This positions the country as a critical global player in the industry, pivotal in driving infrastructure development, industrial expansion, and energy access.
Globally, the mining and construction sector represents a $18 trillion market and contributes 16% to global GDP. In India, it contributes 22% to the national GDP—second only to China—and supports over 70 million jobs across various segments.
$100 Billion Economic Contribution and 20 Million Jobs
According to the report, the sector’s expansion is expected to contribute over $100 billion to the Indian economy by FY2030 and generate around 20 million jobs through direct and indirect employment. This growth is driven by the rise of supporting industries, increased demand for skilled labor, and higher tax revenues.
CII-Kearney’s Vision 2030: Key Policy Recommendations
To unlock the sector’s full potential and position India as a global manufacturing hub for MCE, the report outlines a comprehensive Vision 2030 roadmap. Key recommendations include:
- Establishing a single nodal agency for the unified governance of the MCE sector
- Launching a Production-Linked Incentive (PLI) scheme tailored for the MCE industry
- Promoting exports via Free Trade Agreements (FTAs) and mutual recognition of Indian certification standards
- Encouraging automation and technology adoption across manufacturing and mining operations
- Rationalising tax structures and import duties to boost cost competitiveness
- Setting up national innovation forums, R&D consortia, and start-up accelerators
- Providing green technology incentives and supporting clean-tech R&D initiatives
- Reforming underground mining and beneficiation regulations to enhance resource utilization
India’s Global Manufacturing Ambition
The CII-Kearney report reinforces India’s ambition to become a global leader in mining and construction equipment (MCE). With targeted reforms and strategic investments, the MCE sector could become a key driver of India’s industrial transformation.
As infrastructure development gains momentum across the country, stakeholders believe that the timely implementation of these recommendations will be critical in positioning India as a world-class hub for high-quality, technologically advanced equipment manufacturing.
Input- IANS
