Domestic Manufacturing Of Components

The Indian Construction Equipment (CE) industry is a key enabler of infrastructure development in the country, supplying critical heavy equipment needed to execute infrastructure and mining projects. With a diversified product profile encompassing over 70 equipment types in five main categories – earthmoving, road construction, material handling, concrete, and material processing, the industry has achieved significant localisation level, averaging 60% and more than 90% for some products like Backhoe Loaders and Pick-and-carry Cranes. Aligned with the government's Aatma Nirbhar Bharat Mission, the CE industry aims to enhance its indigenisation level further to 70-80% by year 2030 and emerge as a truly self-reliant sector.
However, the industry is still dependent on imports for some of the critical components, including hydraulic systems, undercarriage systems, electricals/electronics parts, and telematics. These components form an integral part of majority of the construction equipment manufactured in India. Hence there is a need to create a conducive manufacturing ecosystem to develop the domestic supply chain for these components and thereby help the industry reduce its import dependence and further increase the indigenisation level.
With the government's continued focus on infrastructure and mining sector development, demand for construction equipment is projected to grow significantly, reaching approximately USD 45 billion by 2035, up from the current USD 9.5 billion. Subsequently, the demand for components is also projected to grow substantially, presenting an excellent opportunity for domestic component manufacturers to tap this growing market.
The CE industry is keen to collaborate with domestic component players for manufacturing these critical components and has identified the components for localisation that are presently being imported.
ONLINE MATCH MAKING PORTAL FOR DOMESTIC MANUFACTURING OF COMPONENTS
