Industry stakeholders anticipate strong demand for construction equipment in FY25, buoyed by above-normal monsoon forecasts and the Indian government’s continued focus on infrastructure development. This outlook was shared by Deepak Shetty, President-Designate of ICEMA and CEO & MD of JCB India.

Shetty expressed optimism that the Indian Meteorological Department’s prediction of above-average rainfall would directly benefit the rural market—where most construction equipment is deployed. “With the government’s infrastructure thrust, I expect double-digit growth for the sector this year,” he said in an interaction.

The Indian construction equipment industry has grown by 26 per cent in recent years, though FY25 has been marked by strategic repositioning. “While growth this year could have been higher, we remain confident about the long-term outlook,” Shetty added.

India, now ranked the fourth-largest global economy, is expected to sustain its infrastructure momentum. ICEMA President V Vivekanand, who also serves as MD of Caterpillar India, stated that the sector recorded three per cent growth in FY25, with total sales reaching 140,000 units—setting a new industry benchmark.

JCB India also had a record year, exporting over 10,000 machines to the Americas and selling to about 130 countries. The firm, which began as a joint venture in 1979 and is now a wholly owned subsidiary of the UK-based J.C. Bamford Excavators, operates five manufacturing facilities in India.

Commenting on industry trends, Jaideep Shekhar, Convener of ICEMA’s Industry Analysis Panel, said growth aligned with expectations given the general elections and the implementation of new emission norms.

Despite a near-flat growth rate in the past year, industry leaders remain upbeat about FY25, citing improved rural demand, a rebound in public spending, and ongoing global expansion as key drivers.