New Delhi, Feb 25 (NationPress) Union Minister for Heavy Industries and Steel, HD Kumaraswamy, announced on Wednesday that the government’s allocation of Rs 12.2 lakh crore as capital expenditure (capex) in the Budget for 2026-27 is set to launch India’s construction equipment sector into a position of global prominence.

During his address at the Annual Construction Equipment Finance Conclave in the national capital, he highlighted the essential function of a robust financing structure in fast-tracking India’s infrastructure and manufacturing goals. The minister stated, “India is currently the world’s fourth-largest economy, and we are on a clear path to becoming the third-largest in the near future. This upward trajectory is fueled by infrastructure expansion, a solid manufacturing base, and consistent capital investments.”

Kumaraswamy pointed out that the theme of the conclave, “Building a Resilient Infrastructure and Construction Equipment Financing Ecosystem: Towards Building Domestic Strength for Global Reach,” is both timely and strategically aligned with India’s growth objectives.

He underscored the Centre’s commitment to infrastructure development under the leadership of Prime Minister Narendra Modi, noting that the government is focused on enhancing long-term industrial capabilities alongside physical infrastructure.

The Union Minister also highlighted the proactive involvement of the Ministry of Heavy Industries in fortifying the construction equipment ecosystem through targeted policy initiatives and incentive frameworks.

He further elaborated that the Union Budget for 2026–27 has reaffirmed the government’s dedication through a historic public capital expenditure allocation of Rs 12.2 lakh crore, describing this as a structural, multi-year initiative affecting highways, railways, logistics corridors, ports, renewable energy infrastructure, and urban development.

Kumaraswamy asserted that a resilient financing ecosystem will generate multiplier effects across the economy. “A robust Construction Equipment financing ecosystem will not only bolster manufacturers; it will also empower contractors, MSMEs, logistics operators, and infrastructure developers nationwide,” he said.

He urged for collective efforts to position India as a global center for construction equipment manufacturing and financing.

The minister also discussed the proposed Scheme for Enhancement of Construction and Infrastructure Equipment (CIE), which is being guided by the Ministry of Heavy Industries, aimed at reinforcing domestic production of high-value and technologically advanced equipment.

“This initiative is crafted to build strategic capabilities within the country, allowing our manufacturers to scale confidently, innovate securely, and compete on a global stage,” he noted.

Citing industry estimates, Kumaraswamy mentioned that the Indian Construction Equipment market is valued at approximately $9.5 billion and has the potential to more than double by 2030. The sector recorded sales exceeding 1,40,000 units in FY25 and aims to evolve into a $25-billion market by the end of the decade.

He also highlighted the transformative influence of emerging technologies on the sector. “Automation, AI-driven fleet management, predictive maintenance, and electric and hybrid construction equipment are redefining operational efficiency,” the Minister stated, noting that government initiatives such as PM E-DRIVE are propelling the shift towards cleaner and more sustainable industrial growth.