New Delhi: India’s mining and construction equipment (MCE) sector, currently valued at $16 billion, is projected to grow at a 19 per cent compound annual growth rate to touch $45 billion by 2030, according to a CII-Kearney report released on Monday.
India is now the fastest-growing MCE market among the top six global economies, surpassing even the US, Germany, and Japan, the report states.
The Confederation of Indian Industry (CII) and Kearney’s “vision report” has come up with recommendations aimed at making India a global manufacturing hub in the MCE sector.
According to the report, the mining and construction sector, a key enabler of infrastructure, energy, and industrial growth, commands an $18 trillion global market and contributes 16 per cent of global GDP. In India, this sector is central to national development—contributing 22 per cent of GDP, ranking second only to China, and supporting over 70 million jobs.
India’s MCE market has recorded a rapid compound annual growth rate (CAGR) of 12 per cent over the past five years, to position the country as a key global player.
The expansion of the MCE sector is projected to contribute over $100 billion to India’s economy by FY30 and create 20 million jobs directly or indirectly. This impact is driven by the growth of upstream and downstream industries, job creation, and a boost to tax revenues.
The report presents a bold Vision 2030 to position India as a global leader in India’s mining and construction equipment (MCE) sector and outlines an action plan.
To realise the full potential of Vision 2030, the report recommends structural and policy initiatives. Institutionalising governance via a single nodal agency, production-linked incentive (PLI) scheme tailored for MCE, accelerating MCE exports through FTAs, establishing mutual recognition arrangements for Indian certification standards, and promoting technology adoption and automation.
Rationalising tax and import duties, creating innovation forums including National R&D consortia and start-up accelerators, green incentives and clean-tech R&D support, revamping underground mining and beneficiation regulations to unlock mineral potential are the other key recommendations.
(IANS)
