India’s construction equipment (CE) industry reported a marginal decline of around 2 per cent in total equipment sales during FY2025–26, with overall sales falling to 136,995 units from 140,191 units in FY25. However, exports registered strong growth of 31.5 per cent, reinforcing India’s position as the world’s third-largest construction equipment market.According to ICEMA, domestic demand declined by around 7 per cent across most equipment categories due to slower infrastructure execution, project delays, land acquisition challenges and slower disbursement cycles. ICEMA said the sector remained resilient, supported by growing global acceptance of Indian-manufactured construction equipment.Earthmoving equipment continued to dominate with around 71 per cent market share at 97,236 units, down 2 per cent year-on-year. Material handling equipment stood at 15,290 units, down 10 per cent, while concrete equipment remained broadly stable at 14,486 units. Road construction equipment posted 6.3 per cent growth to 7,445 units, and material processing equipment grew 1.2 per cent to 2,538 units.ICEMA said domestic demand was affected by several headwinds, including lower national highway construction activity, fewer project awards, slower implementation of the Jal Jeevan Mission, contractor payment delays, CEV Stage V emission norms and rising crude oil and bitumen costs.ICEMA also highlighted that over 95 per cent of equipment sold in India continues to be manufactured domestically. The Union Budget 2026–27 announcement of a dedicated incentive scheme for the Construction and Infrastructure Equipment sector is expected to support localisation of critical components, reduce import dependence and strengthen manufacturing growth.