Powering India鈥檚 $30-Trillion Leap
India鈥檚 march towards a $30-trillion economy by 2047 is inseparable from its infrastructure ambitions. From expressways and high-speed rail to industrial corridors and new-generation airports, the scale of projects under execution is staggering. Yet, behind every kilometre of road laid or cubic metre of concrete poured lies an often-overlooked hero: construction equipment (CE).
The CE industry is no longer simply about earthmoving machines or concrete mixers. It is evolving into a technology-driven ecosystem where digitalisation, sustainability, localisation, and financing innovation converge. As industry leaders point out, this sector will be central to ensuring India鈥檚 infrastructure not only grows quickly, but also sustainably and globally competitively.
Machines hold the key
Delays have long plagued Indian infrastructure. Projects that should finish in two years often take three or more, inflating costs and eroding investor confidence. According to SP Rajan, Vice President and Head of Competency Centre, L&T, the problem is not merely about budgets but about timelines.
鈥淚f you are able to complete the project within the timelines or ahead of timelines, you are bound to save a lot of money,鈥� he said. 鈥淯nfortunately, many projects take 1.5 times or even five times longer than planned. The equipment industry can help bridge that gap by enabling speed, reliability, and sustainability.鈥�
Sandeep Singh, Managing Director, Tata Hitachi Construction Machinery, reinforced this point by stressing the importance of execution quality. 鈥淲e need to engage ourselves more and more with the government to ensure that we execute our jobs well. Execution should be of good quality. So, we contribute in all mega projects鈥攚hether it is road construction, mining, ports, airports, or urban development,鈥� he said.
Rajan emphasises that sustainability is the second, inseparable pillar. 鈥淲e are in a very innocent stage when it comes to sustainable practices. We need to move from 鈥榞ood to have鈥� to 鈥榤ust have鈥�. Equipment design, utilisation, and maintenance practices must evolve rapidly if we want to meet our climate goals,鈥� he added.
India鈥檚 mega projects鈥攂e it the Mumbai鈥揘agpur Samruddhi Expressway or new mining corridors in Odisha 鈥� demand unprecedented volumes of material handling. That has pushed demand for higher-capacity crushing, screening, and batching plants.
Singh pointed to the rapid growth of India鈥檚 urban population鈥攆rom 460 million today to 600 million within the next five to seven years鈥攁s a catalyst for demand. 鈥淭hat is going to demand huge amounts of infrastructure鈥攏ew roads, ports, airports, residential and industrial buildings. CE will play a very, very important role in enabling this transformation.鈥�
Jaideep Shekhar, Managing Director, Terex India, sees a shift in buying behaviour. 鈥淭here is a big push for large-capacity plants because the scale of projects demands it. But equally, customers want mobility. Contractors now understand the benefit of equipment that can be deployed in a week rather than months. That change in mindset is driving the move towards mobile and modular solutions.鈥�
This duality鈥攎achines that are both powerful and quickly deployable鈥攊s becoming the new normal. Sandeep Kumar, National Sales Head (Excavator Business), LiuGong India, observes a similar evolution in the excavator segment. 鈥淭here has been a 30 to 40 per cent rise in demand for compact, low-emission, low-noise machines for urban and industrial projects. At the same time, mining companies now want 65- to 80-tonne excavators instead of the earlier 38- or 50-tonne machines. Contractors are no longer satisfied with just a machine鈥攖hey want specific, quantifiable output.鈥�
The green shift
The sustainability agenda is rewriting equipment design. India鈥檚 shift to BS Stage V emission norms is a case in point. The transition will raise equipment costs by 10 to 12 per cent, but leaders argue the benefits far outweigh the short-term pain.
鈥淏S-V is not just an emission upgrade; it is a technology shift,鈥� explained Shekhar. 鈥淵es, it adds cost, but it also aligns our products with global standards. That opens up export opportunities, because the same machines built here can serve Europe or North America with only minor tweaks.鈥�
Still, the implementation will not be without hurdles. As Kumar cautions, 鈥淪tage V technology depends on clean fuel and robust after-treatment systems. India still lacks infrastructure in many remote sites. Manufacturers and customers will have to work together to make it viable.鈥�
Electrification is another frontier. Sanjay Patwari, Vice President 鈥� Mobility & Wind Business Unit, Bonfiglioli India, believes electric drive systems are already practical in specific use cases. 鈥淢ini-excavators and loaders are ideal for electrification. They operate in limited areas, can plug into stable power, and deliver regenerative energy savings. These machines will show the first wave of returns.鈥�
But challenges remain. Customers still worry about reliability, residual value, and resale markets. As Kumar noted, 鈥淓ven if electric machines perform well today, buyers wonder what their value will be three or five years down the line. That uncertainty slows adoption.鈥� To counter this, OEMs are experimenting with extended warranties and buyback programmes.
For Singh, sustainability is not optional but cultural. 鈥淏ringing safety, quality, and sustainability in all aspects has become part of the culture of most organisations. At Tata Hitachi, 80 per cent of our power comes from solar, our plants are carbon neutral in water discharge, and we are digital-first. Sustainability is not just about the machine鈥攊t is about how we run our entire ecosystem,鈥� he said.
Transforming machines
CE is increasingly digital-first. Sensors, IoT, and AI are transforming machines from iron workhorses into intelligent, connected assets. Anand Sundaresan, Director, Ammann India, pointed out how batching plants have changed. 鈥淓arlier, concrete was mixed by volume, with little accuracy. Today, advanced control systems measure every ingredient and provide real-time data. We can even monitor if a truck driver unloads concrete at the right site or diverts it elsewhere. Automation has brought consistency and transparency batch after batch.鈥�
Shekhar added that real-time monitoring is spreading quickly in crushing and screening. 鈥淢achines can self-diagnose, send alerts, and allow remote intervention. Service engineers no longer need to travel for every issue鈥攎any problems can be resolved digitally. This saves downtime and improves productivity.鈥�
Telematics and predictive maintenance are now mainstream. By analysing vibration patterns, fuel usage, and pressure variations, systems can flag potential breakdowns weeks in advance. The result is fewer stoppages and higher uptime鈥攁 crucial advantage for projects running on tight deadlines.
For decades, India relied on imported components鈥攅ngines, hydraulics, and electronics. That is changing fast. Localisation is no longer just about cost-cutting; it is about supply chain resilience and export readiness.
Sundaresan believes India has reached global parity in many segments. 鈥淥n basic quality and technology, we can compete with anyone. Our batching plants, rollers, and compact equipment are not just serving India but are being exported worldwide. The question is whether Indian customers are ready to pay for advanced systems that global buyers demand.鈥�
Shekhar agrees but points to a logistical handicap. 鈥淚t is cheaper to ship a container from the UK to Dubai than from Mumbai to Dubai. Lack of direct shipping routes from India to Europe and other markets adds unnecessary cost. If logistics improve, India can truly become a CE export hub.鈥�
With new technologies pushing up sticker prices, financing models are adapting. Leasing, rentals, and pay-per-use models are gaining traction.
Rajan advocates for outcome-based partnerships between OEMs and contractors. 鈥淚nstead of just selling machines, manufacturers should participate in the project outcome. If they can demonstrate lower cost per cubic metre or tonne, contractors will happily sign long-term contracts. That kind of risk-sharing can change the game.鈥�
Telematics is an enabler here, providing transparent data on fuel burn, idle time, and productivity. With verifiable numbers, financiers can underwrite loans more confidently, contractors can control costs better, and OEMs can prove the value of their technology.
As machines become smarter, the workforce must keep up. Operators now need to understand digital dashboards, telematics alerts, and predictive maintenance signals, not just levers and pedals.
鈥淭raining is critical,鈥� stressed Rajan. 鈥淲e should be using simulators, remote monitoring, and feedback loops to upskill operators. We need to reduce wastage, idling, and misuse through better discipline and data-driven practices.鈥�
The industry is responding with training academies, simulator-based courses, and certification programmes. But scaling this effort nationwide remains a challenge.
Looking ahead
India will not only meet its domestic infrastructure targets but could also become a global hub for CE manufacturing. As Shekhar summed it up, 鈥淲e are already on that journey. With collaboration, localisation, and technology adoption, India is poised to become a manufacturing and innovation base for the world.鈥�
And as Rajan reminded, the true measure of success is not just in machines sold, but in projects completed on time, within cost, and with a smaller environmental footprint. The CE industry must evolve from being a supplier to being a partner in nation-building.
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