Sales of construction equipment in India’s domestic market fell 9 per cent to 81,566 units in the first nine months of the current financial year, weighed down by slower infrastructure activity and execution challenges, according to industry body Indian Construction Equipment Manufacturers' Association (ICEMA).

Domestic sales had stood at 89,244 units in the corresponding period of the previous year. In contrast, exports rose sharply to 12,469 units from 9,733 units over the same period, reflecting stronger overseas demand.

Overall sales, including domestic and exports, declined 5 per cent to 94,035 units during April–December of the current financial year, compared with 98,737 units in the year-ago period.

ICEMA said that while domestic sales contracted by nearly 9 per cent, exports increased by 28 per cent, helping limit the overall industry decline to 5 per cent in the first nine months of FY26. The export growth highlights increasing market diversification and resilient demand from international markets.

Deepak Shetty, president of ICEMA and chief executive and managing director of JCB India Ltd, said domestic demand during the year-to-date period of FY25–26 remained subdued. He added that industry growth is closely linked to infrastructure development, where companies faced headwinds during the period.

Looking ahead, ICEMA said the industry is expecting a strong capital expenditure allocation and faster award of government projects in the upcoming Union Budget to revive domestic demand.