₹9-10 trillion capex to power mining equipment demand by 2030: Report

Annual capital expenditure across infrastructure, mining, manufacturing and energy is expected to nearly double by 2030, driving strong growth in mining and construction equipment

Annual capital expenditure across infrastructure, mining, manufacturing and energy sectors that drive demand for mining and construction equipment (MCE) is expected to almost double to Rs 9-10 trillion by 2030 from around Rs 5.5 trillion in 2025, creating a strong growth pipeline for the domestic industry, according to a joint report by the Confederation of Indian Industry (CII) and Boston Consulting Group (BCG).

 

The report, released at an industry event organised by CII in New Delhi on Tuesday, projects the domestic MCE industry to expand from around $17 billion in 2025 to $180-200 billion by 2047, driven by sustained investments in infrastructure, manufacturing, mining and the energy transition.

   

"India will go through, over the next 15, 20, 25 years, one of the most comprehensive and one of the largest infrastructure build-outs we have seen in human history," Abhishek Bhatia, managing director of BCG, said during the launch of the report.

 

The report said India's mining transition will significantly reshape equipment demand. It pointed to the government's target of increasing underground coal production from around 30 million tonnes to 100 million tonnes by 2030, raising overall coal output to 1.5 billion tonnes, and auctioning more than 100 critical mineral blocks over the next five years under the National Critical Mineral Mission.

 

While surface mining will continue to require large excavators, shovels and dump trucks, underground mining and critical mineral extraction will increasingly drive demand for specialised equipment such as continuous miners, longwall systems, roadheaders, drill rigs and mineral-processing machinery, much of which India currently imports.

 

Despite emerging as a net exporter of mining and construction equipment in 2025, India still imports around $4 billion worth of equipment and components annually, particularly specialised underground mining and critical mineral processing machinery.

 

The report said localisation remains at about 50 per cent and called for building a deeper domestic supplier ecosystem to reduce import dependence. It also flagged China's dominance in critical mineral processing equipment as a strategic vulnerability for India.

 

To strengthen domestic manufacturing, the report recommended a tiered customs duty structure to encourage value addition, procurement preference for Indian-made equipment in government projects, a fleet scrappage policy for off-road equipment, a dedicated nodal agency for the sector, action against counterfeit spare parts, and expanded operator training through upgraded Industrial Training Institutes.

 

On exports, the report said India should target a 20 per cent share of the global mining and construction equipment export market by 2047, translating into an export opportunity of more than $75 billion. India's exports have nearly tripled over the past decade to around $4.9 billion in 2025, although the country still accounts for less than 4 per cent of global import demand. It recommended focusing on Southeast Asia, Africa, the Gulf and South America, while strengthening government-backed buyer financing to compete with Chinese manufacturers.

 

Speaking at the same event, Vivek Bhatia, chairman of CII's Mining and Construction Equipment Division, said the industry recorded gross sales of more than 140,000 units in 2025-26, up 3 per cent from the previous year, while exports registered a record 31.5 per cent year-on-year growth, reflecting the increasing global competitiveness of India’s mining and construction equipment industry.