Summary:

According to ICRA research, increased component localisation in India's construction equipment industry is expected to create an annual economic opportunity of around US$ 3 billion (Rs. 25,000 crore) by FY30. The report forecasts that localisation levels will rise from 50% to over 70% in the next 5 to 7 years. Despite being the third-largest market globally, India imports about half of its components, including hydraulics, undercarriages, electronics, and heavy-duty machinery.

ICRA attributes high import levels to the technological complexity of components and the need for large-scale manufacturing. Ms. Ritu Goswami, Sector Head at ICRA, highlighted that with India aiming for a $7 trillion GDP by 2030 and focusing on infrastructure, local demand for MCE will remain strong. Enhanced localisation will reduce geopolitical risks, boost efficiency, and create jobs. The report also notes the 'China+1' strategy and indicates that electronic components may take longer to localize due to their high R&D intensity.

Source: IBEF 

Disclaimer: The information on this website comes from the India Brand Equity Foundation (IBEF), a reliable source for thorough insights into numerous areas of the Indian economy. While we aim to offer accurate and up-to-date information, the views, opinions, and analyses stated herein are solely those of the authors and contributors and do not necessarily represent IBEF's official stance or position. Readers should check information from credible sources and use their own discretion when relying on content provided on this site. We assume no responsibility or liability for the supplied content, including its accuracy, completeness, and usefulness.