New Delhi: The Union government is working on a new Bill to support India’s construction equipment (CE) industry, Roads and Highway Minister Nitin Gadkari said on Thursday. The move aims to reduce the imports, particularly from China, and enhance the sector’s competitiveness through targeted policy measures.
“We will frame rules and regulations for it. Our Bill will be released in the next session. Once it is approved, the standards will be set. You will not have to face the problems you are facing today. The standards will be set. Once the Bill is approved, all your worries will be solved,” the minister said.
He was speaking at the annual session of the Indian Construction Equipment Manufacturers’ Association (ICEMA), the apex industry body representing over 150 members, including 95 per cent of the country’s OEMs and component manufacturers.
India’s construction equipment industry, valued at approximately $9 billion, has been facing the heat in recent years from Chinese imports. According to experts, the share of Chinese imports has risen to approximately 25 per cent in segments like excavators. Last year, major domestic players like Tata Hitachi also flagged concerns over the surge in cheaper imports from China.
Speaking on efforts to decarbonise the sector, Gadkari said the government is considering a 10 per cent machinery advance for OEMs shifting to flex engines and clean fuels, along with zero per cent interest loans for equipment buyers using alternative fuel technologies.
Industry growth
Gadkari acknowledged that last year’s slowdown in the industry was due to the cancellation of the Bharatmala project, but added that it should not affect progress this year. “That problem has been solved. We have awarded ₹2 lakh crore so far. Now we will award another ₹5 lakh crore taking the total to ₹7 lakh crore by year-end.” “We aim to award road projects worth ₹10 lakh crore every year,” he added.
Retail sales of construction equipment (CE) grew marginally to 24,568 units during April-July 2025, up from 24,240 units in the same period last year, according to data from the Federation of Automobile Dealers Associations (FADA).
The minister urged the CE industry to invest in high-capacity machinery for tunneling and pre-cast construction, “We are building tunnels worth ₹3 lakh crore, but machinery availability remains a bottleneck. European nations have advanced tunnel boring equipment, we need to adapt such machines for Indian conditions. Pre-cast is now mandatory in many projects, requiring specialised machinery. I urge your industry to step up in these areas.”
Giving reference to a recent study, he noted that the country’s logistics costs have declined from 16 per cent due to enhancements in road infrastructure. He added that the government is working to reduce this further to 9 per cent by December.
Skill training
Gadkari also advised industry players to provide…
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