India’s infrastructure push, contributing nearly 13% to GDP and delivering a multiplier of ₹250 for every ₹100 invested, is powering the nation’s status as the world’s fastest-growing major economy. Ajax Engineering’s Chief of Planning and Strategy Anshul Joshi highlighted the need for construction equipment to be treated as a strategic sector to catalyse its export and innovation potential.
“Today, India boasts the highest economic growth rate among major economies, with infrastructure directly contributing nearly 13% to GDP. The construction sector’s impressive multiplier—where every ₹100 invested translates into ₹250 of GDP output—is a clear sign that the country’s growth engine is firing on all cylinders. The real challenge now is how do we catalyse this growth further,” Joshi said at Autocar Professional’s Construction Equipment Inner Circle, a CXO roundtable hosted by ZF Group.
According to Joshi, the first step is to stop treating construction equipment as an extension of the passenger and commercial vehicle sectors. “This industry needs to be looked at as a strategic area in policy just like petroleum, chip, or mobile manufacturing,” he said.
“The construction equipment industry plays a pivotal long-term role in fuelling India’s economic growth, not only by supporting government and private sector initiatives domestically, but also by enhancing the nation’s global competitiveness. Just as China leveraged its equipment manufacturing strength to fuel projects worldwide—particularly through Belt and Road initiatives when its home market faltered—India, too, has the potential to become a global leader in construction equipment by capitalizing on export demand and investing in innovation and scale,” he said.
He stressed that India must identify strategic areas where it can build competency, while ensuring the entire ecosystem, from OEMs to suppliers, remains viable. “While there are important lessons to learn from China’s model, it cannot simply be replicated. In China, when a sector slows down, the state often steps in to provide support because many enterprises are state-owned. This allows the government to quickly intervene and stabilize industries through direct financial bailouts and restructuring efforts—a dynamic not easily replicated in economies with a larger private sector presence. In India, we must remain prudent about profitability at the enterprise level,” he said.
“The government should keep a close watch not just on the top OEMs, but also on the health and viability of the supplier ecosystem. Profitability in this industry is much harder to achieve than in the passenger or commercial vehicle segments. Unless we take a holistic view of competitiveness across the value chain, and avoid imitating policies from other sectors, it will be difficult to build the export base. The entire ecosystem and its many subsets must be competitive for the industry to thrive,” he said.
Regulation and Competitiveness
Joshi proposed uniformity in regulatory frameworks, which he described as fragmented. “We cannot have one set of rules for machines on the road and another for those off it. The framework has to be uniform,” he said. He noted that too much of R&D spending is being diverted to meet regulatory requirements rather than building new solutions. “A substantial part of the companies’ money is going into fulfilling compliance instead of innovation. Ultimately, it’s the customer who pays for this.”
Learning from China is useful, Joshi said, but India must chart its own path. “We cannot ape the Chinese model. Our path will be different. Like small cars were unique to India, so are backhoes and self-loading concrete mixers. We must incentivise what fits our needs, whether through targeted PLI schemes or import tariff or export incentives.”
Case for Hybrids
Looking ahead, Joshi sees hybrids as a viable bridge technology for the construction equipment industry. “Our market is extremely value-sensitive,” he explained. “Customers adopt only when they see value. Till now, diesel ICE engines made the most sense. But as Europe slows down diesel, India can become an important diesel engine producer, we must consider alternatives.”
Electric power, he argued, is not always feasible for large machines. “Because of the size of the equipment, hybrids may be the practical alternative. They can reduce emissions, improve fuel efficiency, and still give customers a viable option,” Joshi said.
Rather than forcing change through regulation, he urged a direction-led approach. “Technology investment needs to be aligned to customer value. Don’t dump it on his head instead make it viable. Hybrid is one such strategic imperative we need to incentivise.” On the road ahead, Joshi’s message was clear: the construction equipment industry cannot afford to be seen as a peripheral cousin of the auto industry. It needs tailored policies, an ecosystem approach to competitiveness, and a technology roadmap that fits India’s unique needs.
Ajax Engineering is a leading Indian manufacturer of concrete equipment, best known for pioneering self-loading concrete mixers (SLCMs) in the country. Headquartered in Bengaluru, the company offers a wide range of products including concrete batching plants, transit mixers, boom pumps, concrete pump, pavers, and dumpers.