Financing Key To Manufacturing and Infra Push, Says HD Kumaraswamy

Union Minister for Heavy Industries and Steel, H. D. Kumaraswamy, on Wednesday underscored the critical role of a robust financing architecture in accelerating India’s infrastructure and manufacturing ambitions while addressing the 6th Annual Construction Equipment Finance Conclave in the national capital.

Speaking at the industry gathering, the Minister emphasised that the conclave’s theme, “Building a Resilient Infrastructure and Construction Equipment Financing Ecosystem: Towards Building Domestic Strength for Global Reach” was both timely and strategically aligned with India’s growth trajectory.

“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.

Highlighting the Centre’s infrastructure thrust under the leadership of Prime Minister Shri Narendra Modi, the Minister noted that the government is building long-term industrial capacity alongside physical assets.

“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 stated.

Kumaraswamy emphasised the proactive role of the Ministry of Heavy Industries in strengthening the construction equipment ecosystem through targeted policy interventions and incentive frameworks. He noted that the Union Budget 2026–27 has reaffirmed the government’s commitment through a historic public capital expenditure allocation of ₹12.2 lakh crore, describing it as a structural, multi-year push spanning highways, railways, logistics corridors, ports, renewable energy infrastructure and urban expansion.

The Minister also drew attention to the proposed Scheme for Enhancement of Construction & Infrastructure Equipment (CIE), being steered by the Ministry of Heavy Industries, aimed at strengthening domestic manufacturing of high-value and 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,” he observed.

Citing industry estimates, Kumaraswamy noted that the Indian Construction Equipment market is currently valued at around $9.5 billion and holds the potential to more than double by 2030. The sector recorded sales of over 1,40,000 units in FY25 and has set an ambitious target of evolving into a $25-billion market by the end of the decade.

He further highlighted the transformative impact of emerging technologies on the sector. “Automation, AI-enabled fleet management, predictive maintenance, and electric and hybrid construction equipment are redefining operational efficiency,” the Minister said, adding that government initiatives such as PM E-DRIVE are accelerating the transition towards cleaner and more sustainable industrial growth.

The Minister stressed that a resilient financing ecosystem would have multiplier effects across the economy. “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 remarked.

Concluding his address, Kumaraswamy called for collective action to position India as a global hub for construction equipment manufacturing and financing.

“The Construction Equipment sector is not merely participating in India’s growth story - it is constructing it,” he said, urging stakeholders to work together to build a globally competitive, technologically advanced and financially resilient ecosystem aligned with the national development vision.