Recovery Of Mining and Construction Equipment Industry Likely In Second Half of FY26: ICRA

ENA Sectors 2025-07-15 17:05:23 New Delhi, Jul 15 (KNN) Indias mining and construction equipment (MCE) industry is likely to bounce back in the second half of the financial year 2025-26 (H2 FY26), according to a recent report by credit rating agency ICRA. After facing a slowdown in FY25 due to high equipment prices, tight financing options, and reduced road project execution, the sector is expected to regain momentum supported by strong government spending. ICRA noted that demand for equipment dropped in FY25, particularly for road construction machinery. This was largely because the pace of road construction slowed down due to elections and liquidity challenges. However, the long-term outlook remains positive. The governments continued focus on infrastructure—such as roads, railways, irrigation, and urban development—is expected to drive demand for MCE equipment in the coming years. The report forecasts that the industry will grow by 8-10% in FY26, particularly in the second half, once infrastructure projects pick up pace post-election. Exports of MCE equipment also fell by 20% in FY25 due to weak demand from key international markets. However, imports surged by 77% because of strong domestic mining activity, especially in coal and quarrying. ICRA believes that while the sector faces short-term challenges, including slow demand and increased competition from global players, the long-term prospects are solid. The increased capital outlay in the Union Budget and rising public-private partnerships will help drive future growth. Overall, the MCE industry is expected to recover steadily, with improvement likely starting in H2 FY26, as economic and infrastructure activities gain traction. (KNN Bureau) 42822 https://knnindia.co.in/news/newsdetails/sectors/recovery-of-mining-and-construction-equipment-industry-likely-in-second-half-of-fy26-icra 2025-07-15 17:05:23 knnindia.co.in Recovery Of Mining and Construction Equipment Industry Likely In Second Half of FY26: ICRA