India can emerge as global MCE hub with tech integration, says NITI Aayog member
New Delhi: India has the potential to establish a $25 billion plus export market in the Mining and Construction Equipment (MCE) sector by 2030, NITI Aayog Member Dr Vijay Kumar Saraswat said on Monday.
Speaking at the Mining and Construction Equipment Summit organised by the CII Eastern Region in New Delhi, Saraswat said that the roadmap depends on India's ability to integrate
advanced manufacturing
with intelligent systems design, indigenize critical components, and align with international performance and emission standards.
'A multi-pronged strategy is essential—one that includes long-term demand visibility through infrastructure pipelines, accelerated adoption of Industry 4.0 practices, public–private R&D investments, and the development of a unified testing, validation, and certification ecosystem,' he said.
The summit was held under the theme 'Redefining Boundaries, Innovating a Sustainable Future'.
Ambassador of Brazil to India and Bhutan, Kenneth Félix Haczynski da Nóbrega, said Brazil's resource abundance and green energy ecosystem, combined with India's technological capabilities and industrial scale, offer natural synergies for bilateral cooperation in strategic sectors.
'This partnership can unlock new opportunities for
sustainable development
, enhance energy security, fostering a stronger economic and environmental partnership between the two nations,' the Brazilian envoy said.
Ambassador of the Republic of Zimbabwe, Stella Nkomo, said Zimbabwe's rich mineral resources and India's technological expertise, advanced machinery, and capacity-building capabilities make for a compelling partnership.
She said that mining is at the forefront of Zimbabwe's economic growth strategy and highlighted the opportunity to establish strong industrial ties that can generate mutual benefits and drive economic development.
BEML Chairman and Managing Director Shantanu Roy said unmanned autonomous systems are now operational in sectors such as metro rail and mining. 'The paradigm shift brought about by automation in various sectors is evident in examples such as UTO-grade metro rail systems and AI-powered mining equipment,' he said.
CII Mining and Construction Equipment Division Chairman and TKIL Industries Managing Director and CEO Vivek Bhatia said India is well-positioned to reduce reliance on imports and boost domestic manufacturing by leveraging existing resources in steel, hydraulics, and electronics.
Coal India Ltd Director (Business Development) Debasish Nanda said the adoption of advanced technologies is essential for sustainable growth in mining. He said substantial investment in R&D is needed to create domestic underground mining equipment and improve extraction processes.
Eastern Regional Council Chairman of the CII Mining and Construction Equipment Division and BTL EPC Managing Director Ravi Todi said there is an urgent need for domestic capability building, indigenisation, and
public-private partnerships
.
Western Region Chairman of the CII MCE Division and Sandvik Mining & Rock Technology MD & CEO Manojit Haldar said the collaborative spirit at the summit has laid a strong foundation for advancing innovation, sustainability, and global partnerships in the sector.
A senior official from the Ministry of Heavy Industries said, 'The development of an export-oriented and standards-compliant MCE manufacturing ecosystem aligns with the government's vision of strengthening India's role in the global industrial value chain.'
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Arvind Virmani (AV): There are two sub-segments in the SME segment. There are SMEs, which are basically 10 or more workers, and there are household and micro enterprises. We call them micro, but within them, the household part is much larger at 80-90%, which are just one-person terms of the issues that they face, one is basic infrastructure, which applies to both these two categories. The general point is that just the basic infrastructure in industrial areas is not up to the we think of urban development and cleanliness, we think of residential areas, but to get enterprises of high quality and functioning at the levels we expect, the basic infrastructure has to exist. They cannot be worrying about overflowing sewage pipes every other day if they are getting people from outside to buy things or getting an export order. The second is land use laws. 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So that is one, but also that applies to information to states and officials. One state may be doing better, but the other state is not aware of how it is done. Obviously, it depends on their own willingness and motivation as have independent states. So, supporting states and providing them with information is crucial. The other thing that we are doing is to build an index for investment. One of the initiatives that NITI is doing is to see how we can define the strengths and weaknesses of different states in attracting investment, infrastructure, and manufacturing. So that index is now in phase two and will be completed in the coming months. Once that index is ready, a state that is not doing well will have a roadmap to follow. They have a chance then to improve and, therefore, attract more investment and role of states is 100% integral. The ease of doing business, or what used to be called 'Inspector Raj', occurs at the local level, with those inspectors being responsible to the state government, not to the central government. So, clearly the role of the states is critical in attracting FDI in producing and exporting quality goods. To be in the international market, you must produce international-quality goods. ET: NITI Aayog's latest report on medium-sized enterprises highlights their vital contribution to India's GDP, particularly within the manufacturing sector. How can their potential be fully harnessed? AV: This is important because medium-sized enterprises are capable of advancing to the next level. That means the materials, equipment, tools, skill levels of those who run these things, knowledge and information of the owner manager—all that is of a certain quality. The medium-sized enterprises are the ones who are operating at a much higher quality and, in principle, have the potential to compete globally. 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So, if there is too much protection in an industry, I would not expect anybody to do R&D. So, the first thing is, what is the incentive from their side to do R&D? Why do you do R&D? If you feel that a competitor is going to get something better, a product or a process, which will reduce the cost, and he'll be able to wipe you out. Or he'll produce a new product and get all the market away from you. So that is the basic driver of private sector R& issue is, what can the government do to facilitate it? This is indeed a controversial issue. I believe that we should bring back the R&D subsidy and give a focused subsidy to encourage it. I think it is still very important. Many countries across the world give incentives for R&D. We withdrew it because of a bad experience. I think we need to re-evaluate. ET: Many Asian countries have successfully scaled their SME sectors. What lessons can India learn from countries like Vietnam, Indonesia, or China? AV: This is a very important question. If you look at Southeast Asia in general, the big lesson is they went all out there to attract FDI. They laid out the red carpet for them to set up the supply chain. They didn't do this in one or two years; first they attracted the FDI, and when a large company with US supply chains came in, they rolled out the red carpet to help them build that supply is what has transformed them. That is what enabled them to surpass our per capita income. So, all the Southeast Asian countries who did that and did it successfully now exhibit a much higher gap in per capita income than us. So the big lesson is—FDI and supply chains; if you can get them even now, when things are so bad, it's a different world. That will be a huge driver for the medium and small there are 100 companies engaged in this activity nationwide, that means we have representation in 28 states. If every state brings in one anchor investor, it will transform manufacturing in every state in the next 10 years. We are progressing towards Atmanirbhar Manufacturing. So that is the lesson, a very clear lesson. ET: India was unable to capitalise as much as it had hoped in the China-Plus-One strategy. How can there be a turnaround for India, especially with some inherent strengths, such as a large market and demographic dividend on its side? AV: It is not true that we have not benefited. India is in the top three or five gainers, as per some studies. Some studies show we are third; others show we are fifth. In simple terms, the US imports from China have gone down; they have gone up from other countries, including Taiwan and Vietnam, which is always mentioned. Clearly all these studies indicate that we are the third-largest the question is, how can we gain more?Given our size, we should be gaining 10 times what we are now. So, that is the real issue, and that is connected to what I said about FDI and supply chains. But what is the policy we are pursuing? The policy is having FTAs with countries that are the source of FDI and demand for manufacturers. That is what the supply chain is all about. So, the FTA with the UK is done; the UK is one of the largest importers of manufactured goods in the world. The US and the EU are the top two if you treat the EU as a single the FTAs are part of our strategy to achieve this comprehensive and much bigger shift in the next 5-10 years; [we should] not just be satisfied with being number three or five; we should be number one by a big stretch. India's 64 million MSMEs are vital to India's goals as an economic powerhouse. However they are often constrained by issues relating to scale, diversification and digital infrastructure. Elevating their stature and empowering such businesses is crucial, especially in the context of unpredictable global trade dynamics at play. In this interaction, Niti Aayog member and senior economist Arvind Virmani tells ET Digital how MSMEs can learn from international peers, the role of medium enterprises in unlocking growth and what needs to change for small businesses to become global champions of the future. Watch this video for more. ET: What should the MSME sector's strategy be in the backdrop of recent tariff and trade developments, and how can they safeguard themselves in light of such an unpredictable economic landscape?AV: So, as we know, the tariff was suspended. And based on all the information that came in the next couple of weeks—a month or so after that—a lot of US companies were desperately looking for Indian suppliers of the same products. So, I think the opportunity is much greater than the threat. So, in engineering goods, in household items, and in many others, there were reports, textiles, and many other things; they were looking for suppliers in India. So, I think the advice is very clear. MSMEs should be out there. This is the time. Look for buyers. They are looking. Find them. The MSMEs who feel they want to expand—this is an opportunity. ET: What is your vision for Indian MSMEs over the next decade, and what must change for them to become global champions? AV: The spirit of the MSME sector is very clear. One is that we must not think only of the current situation that there is x demand and we will meet that demand; we must think of the future where we want to be and build for the future. Second is that the future means we are going to be Viksit. So, you must build for a Viksit quality. We cannot be satisfied with where we are today. If I am producing something which is 30% inferior to, say, a German or Japanese product in machinery, a machinery manufacturer must think that in five years, we must be at that quality, and they have to start doing that now. That applies to MSMEs. That applies to start-ups. The vision is that start-ups will drive this push for higher quality, the frontier of the MSME sector. They are going to be the new MSMEs. And they are the ones who will transform productivity and growth. And which is why so much emphasis has been placed on start-up infrastructure, funding, the fund of funds, etc. It's just a matter of connecting them to the that is the vision, actually. That is the future.
