Heavy Machinery Sector Dilemma: Workers Lack Hi-Tech Skills

With India’s rapid infrastructure development, MCE market is expected to nearly triple in size by 2030 to US$ 45 billion. But the growth story has caveats and is at a crossroads. New pressures in the form of automation, environmental compliance, and rising cost of capital are forcing a rethink of operations. 

Technology Level Up

Not all types of technology upgrades are of the robots-running-the-world kind. “Technology is growing. And by technology, I don't necessarily mean automation,” Nirupama Soundararajan, CEO and co-founder, Policy Consensus Centre, told The Secretariat. 

The machines building the country’s infrastructure are no longer operating only on brute force. New equipment in both the mining and construction sectors is increasingly tech-enabled. They can seamlessly integrate with digital tools to monitor efficiency, optimise performance, and perhaps even track emissions in the future. 

“Technology is here to stay, and it makes sense to integrate,” said Soundararajan. But the shift isn't just about machines — it’s about people.

Creating A Skilled Workforce

The people operating a bulldozer and a sensor-enabled tunnelling machine have different levels of skills, training, and certifications. Not everyone can be a crane operator. It requires formal certification and safety training. 

Hand-in-hand with the tech upgrades comes a skilled workforce. “Operating such equipment is not just high-skilled, it’s specialised. Are we creating enough of a skilled labour force for sectors that are becoming more and more niche?” asks Soundararajan. 

Today’s high-tech hydraulic excavators and automated earthmovers aren’t just plug-and-play; they require operators who can navigate both technical and operational systems. Without targeted skilling programmes, India risks a mismatch between advanced equipment and the capacity of the workforce.

Environment Concerns and Compliance

The sector’s challenges go beyond human capital. Sustainability and compliance are fast becoming non-negotiables as India targets Net Zero. The MCE sector is a large contributor to direct emissions, like fuel emissions called Scope 1, and indirect emissions called Scope 2 and 3 like electricity use and supply chain activity. 

Although India’s recently released draft climate finance taxonomy doesn’t include mining and construction equipment, industry experts expect that eventually, these hard-to-abate sectors will come under regulatory scrutiny

“Every industry is going to have to face a short-term decrease in terms of turnover or profits when ESG hits them,” Soundararajan said. “You may see a short-term slowdown, but in the long run, that's going to be business as usual.”

Environmental, Social, and Governance (ESG) compliance also comes with costs — making it harder for firms to access affordable capital. For a sector that runs on loans, it makes sense to expand a leasing market, experts say. 

She also points to the need for a regulated secondary market, especially for reselling old equipment. “At what point can you offload them as secondary? What is the actual lifespan for them to be considered safe and efficient? This is where standards matter.”

On the eve of World Environment Day, India’s heavy equipment industry can see these changes as a threat to their existence or an opportunity to evolve. Environmental compliance can be seen as a burden or as a blueprint for long-term resilience and adaptability of the sector.