HD Kumaraswamy: ₹12.2 Lakh Cr Capex to Power Infrastructure Push

Kumaraswamy stressed that infrastructure development is not limited to physical assets but includes strengthening domestic industrial capacity.

Union Minister for Heavy Industries and Steel H. D. Kumaraswamy has called for a robust and resilient financing ecosystem to accelerate India’s infrastructure expansion and manufacturing ambitions, saying construction equipment finance will be central to building “Viksit Bharat 2047.”

Addressing the 6th Annual Construction Equipment Finance Conclave in New Delhi on Wednesday, the Minister said India’s infrastructure momentum requires a financing architecture capable of supporting rapid scale, innovation and global competitiveness.

Financing the Growth Story

The conclave, themed “Building a Resilient Infrastructure and Construction Equipment Financing Ecosystem: Towards Building Domestic Strength for Global Reach,” comes at a time when India’s economic expansion is increasingly infrastructure-led.

“India today stands as the world’s fourth-largest economy, and we are firmly on course to become the third-largest in the coming years. This growth trajectory is powered by infrastructure expansion, manufacturing depth and sustained capital investment,” Kumaraswamy said.

He noted that the Union Budget 2026–27 has earmarked a historic ₹12.2 lakh crore in public capital expenditure, reinforcing what he described as a structural, multi-year infrastructure push.

The allocation spans:

• Highways and expressways

• Railways and dedicated freight corridors

• Logistics and industrial corridors

• Ports and maritime infrastructure

• Renewable energy projects

• Urban infrastructure expansion

Building Industrial Depth Alongside Assets

Kumaraswamy stressed that infrastructure development is not limited to physical assets but includes strengthening domestic industrial capacity.

“Under the visionary leadership of our Hon’ble Prime Minister Narendra Modi, we are building not just roads and bridges, but the foundation of Viksit Bharat 2047,” he said.

The Minister highlighted the Ministry of Heavy Industries’ efforts to reinforce the construction equipment (CE) ecosystem through targeted policy support and incentive frameworks.

New Scheme to Boost Equipment Manufacturing

A key policy initiative under consideration is the Scheme for Enhancement of Construction & Infrastructure Equipment (CIE), aimed at strengthening domestic manufacturing of high-value, technologically advanced equipment.

“This initiative is designed to build strategic capability within the country and enable our manufacturers to scale with confidence, innovate with security and compete globally,” Kumaraswamy said.

The scheme seeks to reduce import dependence, deepen local value addition and position India as a competitive manufacturing base for global markets.

A $25-Billion Market by 2030

Citing industry estimates, the Minister said India’s construction equipment market is currently valued at approximately $9.5 billion and could more than double by 2030.

The sector:

• Recorded sales of over 1,40,000 units in FY25

• Targets evolution into a $25-billion market by the end of the decade

The projected growth is closely linked to sustained infrastructure spending and increasing mechanisation across construction and logistics.

Technology Driving Transformation

Kumaraswamy underscored the transformative impact of emerging technologies on the sector, including:

• Automation and robotics

• AI-enabled fleet management

• Predictive maintenance systems

• Electric and hybrid construction equipment

He said government initiatives such as PM E-DRIVE are accelerating the transition toward cleaner, more sustainable industrial growth.

Multiplier Effects Across the Economy

A resilient construction equipment financing ecosystem, the Minister argued, would generate broad-based economic benefits.

“A strong Construction Equipment financing ecosystem will not only strengthen manufacturers; it will empower contractors, MSMEs, logistics operators and infrastructure developers across the country,” he said.

Accessible and affordable finance is critical for contractors and small enterprises to acquire modern equipment, improve productivity and meet rising project demands.

Constructing India’s Future

Concluding his address, Kumaraswamy urged industry stakeholders, financiers and policymakers to collaborate in building a globally competitive and technologically advanced ecosystem.

“The Construction Equipment sector is not merely participating in India’s growth story — it is constructing it,” he said.

With record capital expenditure commitments and policy-backed manufacturing support, the government is positioning construction equipment financing as a strategic lever in India’s push toward becoming a global infrastructure and manufacturing powerhouse.