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Construction & Earthmoving machinery & parts

India has become one of the key potential markets for construction equipment. Developing the construction sector would act as a key catalyst for the growth of the construction equipment market in India. Rapid urbanization, growing population, increasing government spending in infrastructure projects, the inflow of foreign direct investment are the major drivers boosting the demand for construction equipment in the country.

Government is a major demand driver, also plays a facilitator’s role through policy and regulations. It is the largest end customer accounting for nearly two thirds of the demand for Construction machinery & equipments and hence has a very significant impact on the industry. Also, its role in setting policy and regulation has a further impact on the industry. Be it GST or ‘Construction, Earthmoving, Material Handling, Mining (CEMM) Act’ or the RERA Act for the Real Estate sector or the sand mining policy or the ‘concrete site mix usage, land acquisition guidelines’, the Construction machinery & equipments industry looks to the Government to act as an enabler. Its policy for facilitating export growth helps the Construction machinery & equipments manufacturers reach out to existing and new markets. It monitors imports allowing for domestic manufacturing activity to flourish.

Infrastructure plays a huge role in propelling other industries and India’s overall development. The government therefore focuses on the development of infrastructure and construction services through focused policies such as open FDI norms, large budget allocation to infrastructure sector, smart cities mission, etc.

Highway construction (Roads) has been one of the key drivers for equipment growth. Earthmoving & Mining equipment is largely used for initial land clearing for Road construction. Similarly, Concrete equipment witnessed a growth thanks to Concrete roads, Railways and Metro. MHE growth was from a mix of Road & Railways, Metro segment. Material processing was largely led by the Quarry segment, which supplies aggregates to Road Construction, Railways, Irrigation sector and Real estate.

The Indian construction, mining equipment industry continues to be highly dependent on the demand for Backhoe loaders and Hydraulic Excavators. The Backhoe Loader alone contributed to 40% of the overall sales by volume during FY 2017-18, a very India specific phenomenon. Backhoe Loaders in China account for hardly 0.5% of overall construction equipment sales while in North America it accounts for 8.5%.

In India, Backhoe loader is the equipment of choice during the progression from manual labour to mechanization. Hydraulic Excavator is usually considered at the next level. An upgrade to the Backhoe Loader – a noticeable trend among customers was the practice of buying a Hydraulic Excavator within 5-6 years of the purchase of a Backhoe Loader.

The Construction industry in India consists of the Real estate as well as the Urban development segment. The Real estate segment covers residential, office, retail, hotels and leisure parks, among others. While Urban development segment broadly consists of sub-segments such as Water supply, Sanitation, Urban transport, Schools, and Healthcare.

Main Highlights

  • Investment of about USD 31.7 Bn has been proposed by 99 cities under the Smart City initiative.
  • Housing for All by 2022, the government’s flagship scheme PMAY launched in June 2015 aims to build 20 million urban homes and 30 million rural houses by 2022.
  • Construction Development and Construction (Infrastructure) activities accounted for approximately 6% and 4% of the percentage of total FDI equity inflows between April 2000 and December 2019. The value of equity inflows for Construction Development and Construction (Infrastructure) between April 2000 and December 2019 stands at USD 25.37 Bn and USD 16.15 Bn respectively.
  • By 2025, Construction market in India is expected to emerge as the third largest globally
  • By 2025, Construction output is expected to grow on average by 7.1% each year
  • By 2020, Construction equipment industry’s revenue is estimated to reach $ 5 bn
  • 100% FDI under automatic route is permitted in completed projects for operations and management of townships, malls/shopping complexes, and business constructions.
  • 100% FDI is allowed under the automatic route for urban infrastructures such as urban transport, water supply and sewerage and sewage treatment.

India will become the world’s third-largest Construction Market by 2025 and thereby the Infrastructure Sector is a key driver for the Indian Economy. Especially the road sector profits from the Government’s efforts and initiated policies to ensure time-bound creation of a world-class infrastructure in the country.


Classifications of Construction Equipments


  • Enhanced SEO
  • Promotions alongside EEPC India organized Virtual Exhibitions
  • Hosting on websites of overseas Indian Embassies & Hi Commission, partner Industry associations & trade bodies
  • Sustained Online and Offline publicity & promotion
  • Easily accessible & compatible platform
  • search tools for suppliers profiles
  • Access to supplier contacts
EEPC India's initiatives to promote Construction Machinery Industry

EEPC India has taken various initiatives like hosting events, buyer seller meets, participating in important events, mobilizing business delegations, etc to promote machine tool industry, premier among them in past few years are :

1 India Pavilion at Construction Expo, Sri Lanka
2 India Pavilion at Big 5, Dubai
3 India Pavilion at Bauma, Munich, Germany
4 INDEE (2-3 annual events globally)
5 IESS (Annual event In India)
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