India's construction equipment exports surge 31.5% in FY26 despite domestic dip
India's construction equipment industry posted a 31.5 per cent surge in exports in FY26 even as domestic sales eased, according to a report released on Friday, 8 May 2025 by the Indian Construction Equipment Manufacturers' Association (ICEMA). The export push helped the sector stay resilient amid slower infrastructure execution and project delays on the ground.
Domestic Sales Under Pressure
Total equipment sales eased approximately 2 per cent during the fiscal year to 1,36,995 units. Domestic demand, excluding non-OEM exports, dropped roughly 7 per cent year-on-year across most equipment categories, the association said. Land acquisition delays, fewer project awards, and moderated fund disbursements for programmes such as the Jal Jeevan Mission were cited as key headwinds.
Contractor payment delays compressed liquidity across the infrastructure ecosystem, while the implementation of CEV Stage V emission norms raised equipment costs significantly — a particular burden given the industry's high financing dependence. Global commodity price inflation, including rising crude oil and bitumen costs, added further pressure in the latter part of FY26.
What Industry Leaders Said
Deepak Shetty, President, ICEMA and CEO & Managing Director, JCB India Ltd, said the domestic decline should not be read as a structural weakness.
