⁠Future Of Mining And Construction Equipment Sector In India

⁠Future Of Mining And Construction Equipment Sector In India

The mining and construction equipment (MCE) sector is witnessing rapid evolution fuelled by innovative machinery driving efficiency in operations, sustainability and growing demand for infrastructure development.

Growing MCE sector

Mining is one of six areas for transformative reforms in the Union Budget 2025-26, along with Taxation, Power Sector, Urban Development, Financial Sector, and Regulatory Reforms. These domains are considered crucial to augment India’s growth potential and global competitiveness during the next five years.

According to numbers reported by the Ministry of Mines, the contribution of the sector to the GDP is 0.90%, and the value of production is reaching Rs 1.40 lakh crore. Core mining, along with mining for critical minerals have also seen spectacular growth and is expected to keep rising in the coming years. India depends heavily on imports of critical minerals such as lithium, nickel, copper and cobalt from foreign sources, with some minerals having 100% import dependency. Hence, to build more self-reliance in the critical mineral sector, the government recently launched the National Critical Mineral Mission (NCMM). The mission will not only secure India’s supply chain, but also build a framework to support technological, regulatory and financial ecosystems in the sector.

With India currently being the third-largest market for construction equipment, the sector is poised for even more growth due to ongoing urban rejuvenation efforts and the building of new smart cities. The Make in India campaign (launched in 2014) has helped boost domestic production and reduce reliance on imports while also contributing to GDP, generating employment and improving technological capabilities. These efforts must be carried forward, and domestic players should equip themselves to become global sellers by increasing quality and adhering to international standards.

Key trends in the sector

There is a huge impact on the sector from the sustainability point of view as the very nature of business can be disruptive if not managed properly. The MCE sector contributes heavily to direct emissions (Scope 1) and indirect emissions (Scope 2 &3). The mining and construction equipment sector must embrace sustainability and ESG principles to ensure long-term viability.  Here, technology also has a huge role to play in enabling safer, cleaner and greener sector. Technological advancements in mining, like the use of IoT and AI, are revolutionising operations, enhancing safety and productivity. Furthermore, use of digital tools, process automation and digital project communication can help with material readiness, heightened safety and risk mitigation in the construction equipment sector.

While open-pit mining is more dominant in India, recent policy measures are pushing for underground coal mining. The Ministry of Coal announced reduced revenue share and waiver of upfront payment to address the challenges of high capital investment and longer gestation period, while promoting this environment-friendly means of coal extraction.

Way forward

Just like the Automotive Research Association of India (ARAI) in the automobile sector, the Indian construction equipment sector should also have a separate organisation that supports R&D for development of futuristic technology. As digital and green technology remain priorities for the industry, the vision to establish India as a global seller for construction equipment must not be lost.

While India grows its mining sector, there must also be a focus on completing the supply chains to not only focus on mineral extraction, but also mineral beneficiation and recycling to bring them back into the cycle of consumption.

We must keep exploring newer avenues, incorporating technological advancement, creating robust mechanisms and striving for self-reliance. The policy and entrepreneurial spirit of the country make it possible for us to achieve Viksit Bharat and bring transformative reforms in the MCE sector.