JCB India, a manufacturer of construction equipment, expects double-digit growth in its business in the current financial year as India’s infrastructure push continues to drive construction activity amid geopolitical tensions, tariff uncertainty and elevated input costs.
The construction equipment industry is likely to grow 9-10% in FY27, while JCB India expects to grow faster, at about 12-14%, managing director and chief executive officer Deepak Shetty said in an interview to Mint.
The optimism comes even as global trade faces disruption and India grapples with higher logistics and input costs. India’s in the June quarter, reinforcing expectations that infrastructure and investment will continue to support growth.
“The focus on infrastructure has only continued. That is very, very positive,” Shetty said. “The industry is growing. We are doing the right things and that is why those results are coming.”
Shetty said should not be viewed only through the lens of roads. Railways, ports, rural connectivity and water infrastructure are emerging as important sources of demand for construction equipment.
Railways, in particular, could become a significant new market for JCB. Track expansion involves clearing and levelling land, strengthening soil and moving and laying tracks—all applications where mechanized construction equipment can improve productivity.
is working with the railway ministry to adapt its machines for such applications. Instead of developing completely new equipment, the company is engineering attachments and modifications that would allow its machines to operate on both roads and railway tracks.
The company is also developing technologies for railway maintenance, which has risen with higher train speeds.
“The focus the government has on infrastructure is going to yield dividends to this industry, not only in the short term but also in the long term,” Shetty said.
Ports offer another opportunity, with the use of JCB’s wheel loaders increasing in material-handling applications.
Export prospects
JCB is simultaneously expanding its export footprint. Its Indian operations supply machines and components to over 130 countries, with the US its largest overseas market. There is scope to add more markets, particularly as India becomes a larger manufacturing base within JCB’s global network.
JCB exports not only machines but engines, transmissions and components from India to markets including the UK, the US and Brazil. Its Vadodara facility is geared substantially towards exports.
The company has a manufacturing capacity of about 85,000 machines annually, which is expected to double by 2030, supported by both domestic and global demand, Shetty said.
Tariff uncertainty remains a risk, especially in the US market, where JCB was affected when tariffs rose sharply. But Shetty said demand remained strong and the company continued to see opportunities for growth.
For Indian construction equipment makers, however, global competition—particularly from Chinese manufacturers—remains a key challenge. Shetty said the proposed production-linked incentive scheme for construction equipment could help Indian manufacturers strengthen their cost competitiveness and margins while encouraging deeper localization.
The scheme, he said, would encourage global component makers to invest in India and help domestic manufacturers source critical parts locally instead of importing them.
“It is going to give a huge support to the localization process, particularly on excavators,” Shetty said.
JCB has already localized about 96% of its backhoe loaders, while localization for excavators ranges from 65% to 75%. Greater local sourcing would reduce exposure to currency and freight volatility and help Indian-made equipment compete more effectively in global markets.
Efficiency offsets cost inflation
JCB cumulatively increased prices by about 3-4% across different months this calendar year, but Shetty said the company had absorbed much of the increase in costs through localization and operational efficiencies instead of passing it on entirely to customers.
Fuel efficiency is increasingly central to that strategy. The latest backhoe loader offers an additional 8% improvement in fuel efficiency over the 14% improvement introduced about 18 months ago. For customers, Shetty said, lower fuel and maintenance costs were critical because construction equipment is a productive asset.
“Construction equipment is where people earn their livelihood,” he said. “We have to be very cautious that the person is able to earn that much rent versus the cost increase that we are giving.”
JCB is also using internet-of-things technology to monitor about 300,000 machines, enabling it to track machine health, fuel consumption and operator performance and improve uptime.
The company invests ₹200 crore-500 crore annually in research and development and capacity expansion and introduces 10-12 new products a year, said Shetty.
With infrastructure investment holding up and exports widening, Shetty expects demand for construction equipment to potentially double over the next five years, creating room for JCB to expand both its Indian business and its global manufacturing role.