India Plans New Bill to Boost Construction Equipment Sector

New Delhi, Aug 8 (KNN) The Union Minister for Road Transport and Highways, Nitin Gadkari, has announced that the government is preparing a new bill to strengthen the domestic construction equipment (CE) industry.

The legislation, expected to be tabled in the upcoming parliamentary session, aims to reduce dependence on imports—especially from China—and improve the sector’s competitiveness through a supportive regulatory framework.

The announcement was made during the annual meeting of the Indian Construction Equipment Manufacturers’ Association (ICEMA), which represents over 150 stakeholders, including 95% of the country’s OEMs and component makers.

India’s CE industry is currently valued at around $9 billion, but imports from China have been steadily rising. In some segments, such as excavators, Chinese products account for nearly 25% of the market.

The government is also considering financial incentives to promote clean technology in the CE sector. Proposals include a 10% machinery advance for OEMs developing flex-fuel and eco-friendly engines, and interest-free loans for buyers investing in alternative-fuel equipment.

On infrastructure development, Gadkari said that the slowdown caused by the cancellation of the Bharatmala road project has been addressed.

So far, road projects worth ₹2 lakh crore have been awarded this year, with plans to increase this to ₹7 lakh crore by year-end, and eventually ₹10 lakh crore annually.

Retail sales of construction equipment have also shown a marginal rise in April–July 2025, reaching 24,568 units compared to 24,240 units last year.

Gadkari urged manufacturers to focus on producing high-capacity machinery for tunnel boring and pre-cast construction, where India faces equipment shortages.

He also stressed the importance of operator training, suggesting three-month regional certification programmes to enhance safety and efficiency. Currently, heavy construction machinery in India does not require a formal operator licence.

(KNN Bureau)