Union Minister for Heavy Industries and Steel H. D. Kumaraswamy on Wednesday underscored the need for a strong and resilient financing framework to accelerate India’s infrastructure and manufacturing ambitions.
Addressing the 6th Annual Construction Equipment Finance Conclave in New Delhi, the Minister said that the event’s theme–Building a Resilient Infrastructure and Construction Equipment Financing Ecosystem: Towards Building Domestic Strength for Global Reach–was timely and aligned with India’s long-term growth priorities.
Kumaraswamy said India has emerged as the world’s fourth-largest economy and is firmly on track to become the third-largest in the coming years. He noted that this growth is being driven by sustained capital investment, infrastructure expansion and deeper manufacturing capabilities.
Referring to the Centre’s infrastructure push under the leadership of Prime Minister Narendra Modi, the Minister said the government is building long-term industrial capacity alongside physical infrastructure.
“Under the visionary leadership of the Prime Minister, we are not only creating roads and bridges but laying the foundation for Viksit Bharat 2047,” Kumaraswamy said.
Highlighting policy support for the construction equipment sector, the Minister said the Ministry of Heavy Industries is implementing targeted interventions and incentive frameworks to strengthen the domestic ecosystem. He pointed out that the Union Budget 2026-27 has reaffirmed the government’s commitment with a public capital expenditure allocation of ₹12.2 lakh crore, calling it a multi-year structural push across highways, railways, logistics corridors, ports, renewable energy and urban infrastructure.
Kumaraswamy also spoke about the proposed Scheme for Enhancement of Construction and Infrastructure Equipment, being steered by the Ministry, aimed at boosting domestic manufacturing of high-value and technologically advanced equipment.
The initiative, he said, is designed to build strategic capability within the country and enable Indian manufacturers to innovate, scale up and compete globally.
Citing industry estimates, the Minister said the Indian construction equipment market is currently valued at around 9.5 billion dollars and has the potential to more than double by 2030. The sector recorded sales of over 1.4 lakh units in FY25 and is targeting a market size of 25 billion dollars by the end of the decade.
Kumaraswamy also highlighted the growing role of technology in transforming the sector, noting that automation, AI-enabled fleet management, predictive maintenance, and electric and hybrid equipment are improving efficiency. He added that initiatives such as PM E-DRIVE are supporting the transition towards cleaner and more sustainable industrial growth.
Stressing the broader economic impact, the Minister said a strong construction equipment financing ecosystem would benefit not only manufacturers but also contractors, MSMEs, logistics operators and infrastructure developers.
