India Construction Equipment Sales Slump 9% Amid Infrastructure Delays

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AuthorRiya Kapoor|Published at:
India Construction Equipment Sales Slump 9% Amid Infrastructure Delays
Overview

Domestic construction equipment sales dropped 9% to 81,566 units in the first nine months of FY26, driven by sluggish infrastructure activity and project delays. While exports surged 28%, overall industry volumes declined 5%, with manufacturers anticipating a boost from the upcoming budget's capital expenditure allocations.

Domestic sales for construction equipment (CE) fell 9 per cent to 81,566 units in the first nine months of this fiscal year. This downturn stems from slower infrastructure activity and challenges in project execution, according to the Indian Construction Equipment Manufacturers' Association (ICEMA).

Export Resilience

Exports offered a significant counterbalance, surging 28 per cent to 12,469 units from 9,733 units in the corresponding prior-year period. This robust overseas demand highlights growing international appetite for Indian-made machinery.

Overall Performance

Combined domestic and export sales registered a 5 per cent decline, totaling 94,035 units during April-December FY26, down from 98,737 units in the previous year. ICEMA President Deepak Shetty acknowledged the muted domestic demand and infrastructure headwinds.

The industry body is now looking towards the upcoming Union Budget for a potential revival, pinning hopes on strong capital expenditure allocations and expedited government project awards to stimulate domestic demand and project execution.

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