India Eyes $45 Billion Growth in Mining and Construction by 2030

India is set to leverage a $45 billion opportunity in the mining and construction equipment sector by 2030. A report by CII-Kearney highlights India's fast growth in this sector, outlining strategies like governance reforms and technology adoption to position as a global manufacturing hub.

A new report by the Confederation of Indian Industry (CII) and global consulting firm Kearney forecasts that India is set to unlock a $45 billion opportunity in the mining and construction equipment sector by 2030. This 'Vision Report' positions India as a potential global leader in the industry.

Currently valued at $16 billion, India's mining and construction equipment (MCE) sector is projected to grow at a remarkable 19% CAGR, according to the report. Notably, India has become the fastest-growing MCE market among the top six global economies, outpacing the US, Germany, and Japan.

The MCE sector, crucial for infrastructure and industrial growth, has a global market value of $18 trillion, contributing significantly to GDPs worldwide. In India, the sector contributes 22% to GDP and supports over 70 million jobs. The report predicts the sector could add more than $100 billion and 20 million jobs to India's economy by 2029-30.

To harness this potential, the report suggests a range of structural and policy recommendations. These include establishing a single nodal agency for governance, implementing a Production Linked Incentive scheme for MCE, accelerating exports through Free Trade Agreements, and promoting technology and automation.

Additionally, the report advocates for rationalizing tax and import duties, creating innovation forums like National R&D consortia, and providing clean-tech R&D support. These initiatives aim to transform India into a manufacturing powerhouse in the MCE sector by 2030.

(With inputs from agencies.)