Rainfall Outlook and Infra Push to Boost Construction Equipment Demand: ICEMA

With the India Meteorological Department predicting an above normal monsoon, and the government maintaining a steady focus on infrastructure projects, the Indian construction equipment (CE) industry is expected to witness a strong demand surge in FY25, according to the Indian Construction Equipment Manufacturers Association (ICEMA).

Deepak Shetty, President Designate of ICEMA and CEO & Managing Director of JCB India, linked the rainfall forecast directly with improved rural prospects, stating, "The India Meteorological Department (IMD) has predicted 'above normal' rainfall in the country and I am very happy that due to this the rural market will be benefited. As most of our machines operate in the rural area, I am hopeful that we will be benefited." He emphasized that infrastructure investments will continue to anchor the industry’s performance, noting, "I am sure that this year the growth will be in double-digit."

While the CE sector has already shown impressive momentum—registering a 26 per cent growth over the past few years—Shetty described FY25 as a year of strategic repositioning, where earlier forecasts had pointed to stronger gains, but shifts in market conditions altered the pace. Yet, his tone remained optimistic, adding, "The growth could certainly have been higher as was anticipated earlier during the year, but as an industry, we continue to be hopeful of a strong future in the longer-term."

India's climb to become the world's fourth-largest economy reinforces the need for infrastructure-led growth, which Shetty believes will naturally sustain the CE industry's upward path. "It is only natural to continue the focus on infrastructure development going ahead," he said, underscoring the broader economic context behind the CE demand outlook.

V Vivekanand, ICEMA President and Managing Director of Caterpillar India Pvt Ltd, supported this view, highlighting the industry’s ability to weather volatility. "The Indian construction equipment industry has demonstrated commendable resilience in 2024-25 registering a modest three per cent growth and achieving a new milestone of 1,40,000 units sold," he said in a recent report, attributing the stability to long-term structural demand.

On company performance, JCB India had a standout year, with Shetty revealing that the firm exported over 10,000 machines to America and now supplies equipment to nearly 130 countries. "Last year was a record year for the company," he said, adding weight to the idea that export strength is complementing domestic growth.

Industry analysis from Jaideep Shekhar, Convener of ICEMA’s Industry Analysis and Insights Panel, explained that despite the flat growth pattern, expectations had been aligned with the timing of general elections and the enforcement of new emission norms, which created temporary pauses in demand.

Established in 1979 as a joint venture and now a wholly owned subsidiary of J C Bamford Excavators, UK, JCB India today operates five manufacturing plants across the country and serves both domestic and global markets, exporting equipment to over 125 countries.

As rainfall prospects brighten and infrastructure priorities remain firm, the construction equipment industry enters FY25 with optimism, well-positioned to build on its current momentum and deliver another year of sustained progress.

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