Domestic Slowdown Drags India’s Construction Equipment Sales Down 2% In FY26: ICEMA

Total equipment sales declined to 1,36,995 units in FY26 from 1,40,191 units in FY25. Domestic demand fell nearly 7 percent across most categories, while exports surged 32 percent, reaching record levels. India remains the world’s third-largest construction equipment market, valued at USD 10 billion in FY25 and projected to reach USD 14.76 billion by 2030. Domestic Demand Slips Amid Project Delays ICEMA President Deepak Shetty said the slowdown reflects execution delays rather than structural weakness, citing slower project awards, land acquisition hurdles and delayed payments to contractors. Earthmoving equipment continued to dominate with a 71 percent market share at 97,236 units, down 2 percent year-on-year. Material handling equipment fell 10 percent to 15,290 units, while road construction equipment grew 6.3 percent to 7,445 units. ICEMA said domestic demand was also impacted by slower implementation of the Jal Jeevan Mission, rising input costs and the rollout of CEV Stage V emission norms. Exports Surge Despite Weak Domestic Market Exports remained the biggest bright spot, driven by improving product quality, competitive pricing and stronger manufacturing capabilities. The industry expects demand recovery as infrastructure execution improves, supported by higher public capex and incentives announced in the Union Budget 2026–27. (KNN Bureau)