Road Projects to Boost Construction Equipment Sales: JCB India

Roads and highways remain the backbone of CE demand

India’s construction equipment manufacturers are banking on new opportunities in the roads and highways sector to boost growth, according to Deepak Shetty, CEO & MD of JCB India. He said that roads and highways have traditionally been the single largest growth engine for the construction equipment (CE) segment, contributing nearly 40 per cent of total sales in India’s construction equipment market.

As head of industry body ICEMA, Shetty noted that the industry saw exceptional sales momentum in FY23 and early FY24. However, growth has slowed in recent months, with ICEMA data showing that Q1FY26 volumes declined by 1 per cent year-on-year and by 30 per cent sequentially.

“We see this as a temporary recalibration. The long-term outlook remains strong, backed by the government’s continued push for highway development under Bharatmala and Gati Shakti. With state elections behind us and a stable policy environment, we expect NHAI and state road agencies to accelerate tendering in H2 FY26, reigniting demand.” Shetty said.

Government infrastructure push and execution gaps

India’s broader infrastructure growth plans under the National Infrastructure Pipeline (NIP) and Gati Shakti are expected to unlock significant opportunities. Yet, Shetty pointed out that execution on the ground remains uneven. Announced investments do not always translate immediately into equipment demand due to procedural hurdles such as land acquisition, funding approvals, and inter-agency coordination.

Once projects move into execution mode, demand for earthmoving equipment in India and other CE categories typically rises sharply. Shetty added that ICEMA has been engaging with policymakers to improve project readiness and ensure timely execution to maintain industry confidence and utilization levels.

Financing challenges for smaller contractors

Access to finance remains one of the biggest challenges for India’s construction equipment industry, particularly for MSMEs and rural contractors. “Limited access to affordable credit continues to hinder smaller and first-time users,” Shetty said.

Through ICEMA’s Finance Panel, the industry has been collaborating with banks and NBFCs to design loan products tailored for MSMEs in the CE space. The industry is pushing for a more structured rental ecosystem, giving contractors the option to use machines without the burden of heavy upfront costs. At the same time, better access to credit and tailored loan products remain critical. Improved financing for construction equipment MSMEs in India is increasingly viewed as a key factor in sustaining sales momentum across the sector.

Made-in-India construction equipment gaining traction

Shetty pointed to the growing self-reliance in CE manufacturing, noting that more than 90 per cent of equipment sold in the country is built locally, with 50 to 60 per cent of components sourced within India. This reflects the rising strength and acceptance of Made-in-India construction equipment, both in domestic markets and in exports.

Under the ICEMA Vision Plan 2035, the industry is working to transform India into a global construction equipment export hub. Already, Indian-made equipment is being exported to Africa, Southeast Asia, and Latin America.

“With the right enablers, including the incentive scheme, infrastructure support in industrial clusters, and smoother trade facilitation, India has the potential to scale exports from the current 10 per cent to 15–20 per cent in the next decade,” Shetty said.

 Conclusion

Despite the short-term slowdown, Shetty believes that India’s CE industry remains well-positioned to benefit from infrastructure development in India, led by roads and highways. The government’s infrastructure programmes such as Bharatmala, Gati Shakti and the National Infrastructure Pipeline are expected to keep construction equipment sales on a steady growth path in the medium to long term. 

Industry experts believe that this momentum will not only increase domestically, it will also lead to global expansion. The industry is set to scale up backed by strong policies, innovative financing and stronger local manufacturing.

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