R. Suryamurthy
India is on the cusp of a significant economic transformation, with its mining and construction equipment (MCE) sector projected to surge to a staggering $45 billion by 2030, unlocking a monumental opportunity for the nation. This optimistic outlook comes from a comprehensive “Vision Report” titled “Path to Viksit Bharat – Mining & Construction Equipment sector,” jointly released by the Confederation of Indian Industry (CII) and Kearney.
The report, which aims to position India as a global manufacturing hub in the MCE sector, outlines a bold Vision 2030 with a detailed action plan. Currently valued at $16 billion, the sector is poised for remarkable growth at a Compound Annual Growth Rate (CAGR) of 19%. This impressive trajectory has already established India as the fastest-growing MCE market among the top six global economies, outperforming even developed nations like the U.S., Germany, and Japan.
The mining and construction sector is a critical enabler of infrastructure, energy, and industrial growth worldwide, commanding an $18 trillion global market and contributing 16% to global GDP. In India, its significance is even more pronounced, contributing a substantial 22% to the national GDP – a figure second only to China – and supporting over 70 million jobs. India’s MCE market has demonstrated robust growth with a 12% CAGR over the past five years, solidifying its position as a key player in the global MCE landscape.
The report anticipates that the expansion of the MCE sector will contribute over $100 billion to India’s economy by FY30, directly and indirectly creating 20 million jobs. This significant economic impact will be driven by the growth of upstream and downstream industries, increased job creation, and a boost to tax revenues.
To fully realize the ambitious Vision 2030, the CII-Kearney report proposes a series of structural and policy initiatives. Key recommendations include:
Institutionalizing Governance: Establishing a single nodal agency to streamline oversight and coordination within the sector.
Production Linked Incentive (PLI) Scheme: Introducing a tailored PLI scheme specifically designed to boost domestic manufacturing in the MCE sector.
Accelerating Exports: Leveraging Free Trade Agreements (FTAs) to enhance MCE exports and establishing mutual recognition arrangements for Indian certification standards.
Technology Adoption: Promoting the widespread adoption of advanced technologies and automation within the industry.
Rationalizing Duties: Re-evaluating and rationalizing tax and import duties to foster a more favorable business environment.
Innovation Forums: Creating dedicated innovation forums, including national R&D consortia and start-up accelerators, to drive technological advancements.
Green Incentives: Providing support for green initiatives and clean-tech R&D to promote sustainable practices.
Regulatory Reforms: Revamping underground mining and beneficiation regulations to unlock India’s vast mineral potential.
With these strategic recommendations and India’s rapid economic growth, the MCE sector is well-positioned to become a cornerstone of the nation’s “Viksit Bharat” (Developed India) vision, contributing significantly to its economic prosperity and global standing.
