The 'JCB' Industry Is Growing Fast. Now's The Time For Reforms

This fascination isn’t just cultural, but also economic. A major growth engine exists behind the quiet spectatorship: India’s mining and construction equipment (MCE) sector. As onlookers stop in their tracks, the industry itself is anything but still.

In India, the MCE sector is currently worth US$ 16 billion, and according to the latest report by the Confederation of Indian Industry (CII) and Kearney, it is expected to grow at 19 per cent annually. That will lead to nearly triple the industry size by 2030 at US$ 45 billion. 

Although the forecast is rosy, the numbers tell a story of muted volume growth. Between April 2024 and February 2025, the sector grew just 3 per cent year-on-year — a sharp drop from the 26 per cent annual growth seen in the previous two financial years. 

“The consensus supports the growth story rather than the stalling story per say,” Nirupama Soundararajan, CEO and co-founder, Policy Consensus Centre, told The Secretariat. 

“I feel the industry's growth should be supported because construction is growing. It’s been a steady sector for India, and given the kind of spending on infrastructure the government has promised, the demand for such equipment should also increase," she said. 

But, amid India’s target of achieving Viksit Bharat status by 2047, the bottlenecks — related to the lack of a single nodal agency for approvals, and tight liquidity with Non-Banking Financial Companies (NBFCs) — could thwart growth. 

New safety standards will come into effect from August of this year, which, coupled with stricter emission targets, could be a challenge for the industry. 

Big Boom Needs A Big Push

The sector itself acts as an important cog for overall growth, by enabling infrastructure for all kinds of development. Think of the machines that build roads, tunnels and power plants, or the equipment that extracts bauxite for aluminium. 

Globally, the MCE industry is massive, valued at around US$ 18 trillion. That includes everything from drilling rigs to backhoes, like India’s favourite earthmover, which is popularly known by the name of a leading brand: "JCB". 

While India may not have overtaken Japan in terms of GDP, contrary to the buzz this week, the country’s MCE industry is the fastest-growing among the top six global economies, outpacing Japan, US and Germany, according to a latest press release by CII. 

Financing remains the lifeblood of the MCE sector, with 85-90 per cent of machines sold in India backed by loans. But tightening liquidity, especially among NBFCs, is beginning to bite. 

This is particularly challenging for first-time buyers, who are seeing reduced loan-to-value ratios and slower disbursements. To add to the pressure, prices are expected to rise with the focus on Net Zero.

To sustain the sector’s momentum, the industry has long called for a single-window nodal agency to streamline approvals and policy decisions — something its cousin, the automobile sector, benefits from in the research and development area. 

There’s also a need to update underground mining regulations, strengthen domestic capabilities in mineral processing and recycling, and improve export competitiveness through free trade agreements and recognition of global standards.

While new safety standards are due to kick in soon, the pace of regulatory reform hasn’t quite matched the sector’s rapid growth.

“Since this is a suddenly burgeoning sector given the focus on infrastructure spending, I think what has happened is that the standards haven't really come up to speed,” says Soundararajan. 

After all, you can take a horse to the water — or a miner to minerals — but without the right equipment, the job remains unfinished.

Why Should Stakeholders Care?

For those in infrastructure, energy, logistics, or even IT, this boom matters. The MCE sector is a foundational industry — it not only builds roads, bridges, and power plants, but also catalyses upstream industries (like steel and cement), as well as downstream industries (like transport and retail).

For policymakers, it’s a chance to turn India from a consumer to a global manufacturing hub for equipment. For workers, it means more jobs. For investors, it’s a sector on steroids. And for startups, especially those in cleantech and automation, it’s a ground for innovation. 

To support its renewable energy ambitions, India is exploring domestic sources of critical minerals like lithium, nickel, copper, and cobalt. A robust domestic mining and construction equipment industry could be one way for a lift-off. But building domestic capacity isn't just about price. 

“While imports from China may be cheaper, I think domestic manufacturers can capitalise by providing better after-sales service. Since these equipments require servicing, and hence large service contracts, it would make it worthwhile in terms of long term costs,” explains Soundararajan. 

In the long run, it’s not just about how much India builds, but how well it equips itself to keep building.