India's Mining And Construction Equipment Market to Hit 45B Dollar by 2030: CII-Kearney

India is set to unlock a $45 billion opportunity in its mining and construction equipment (MCE) sector by 2030, according to a Vision Report jointly released by the Confederation of Indian Industry (CII) and global consulting firm Kearney, which outlines how the country can emerge as a global manufacturing hub in this critical domain.

Currently pegged at $16 billion, the MCE market is expected to grow at a 19% compound annual growth rate (CAGR), a pace that positions India not only as a regional leader but as the fastest-growing MCE market among the top six global economies, outpacing even advanced industrial nations like the United States, Germany, and Japan, the report emphasizes.

As the mining and construction sector forms the backbone of infrastructure, energy, and industrial growth, the report draws attention to the global market’s vast scale—worth $18 trillion and contributing 16% to global GDP—while highlighting India’s central role, where the sector contributes 22% to national GDP, ranks just behind China, and supports over 70 million jobs across the country.

In the last five years, India's MCE sector has grown at a rate of 12% each year, and with the increasing need for infrastructure and local manufacturing, it is expected to add more than $100 billion to the national economy by 2029–30, creating jobs for 20 million people directly or indirectly, according to the CII-Kearney study, which also explains that this growth is fueled by strong connections to related industries, higher tax income, and a growing local supply chain.

To achieve this goal, the report suggests a clear plan that includes setting up a single agency to oversee governance, starting a Production Linked Incentive (PLI) program just for MCE, increasing exports through Free Trade Agreements (FTAs), and making sure Indian certification standards are recognized globally to improve competitiveness.

Additionally, it suggests promoting the use of new technology and automation in the equipment industry, simplifying tax rules and import fees, building innovation networks through national research and development groups and startup support programs, providing incentives for clean technology, and updating regulations for underground mining and mineral processing to fully utilize India’s mineral resources.

With the right structural reforms, policy enablers, and localization efforts, India is not only on track to capitalize on this $45 billion market opportunity but also to redefine its global standing in the mining and construction equipment landscape.

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