Context
- Recently, the Union Heavy Industries Minister stated that the Construction and Infrastructure Equipment (CIE) Scheme, announced in the Union Budget 2026-27, aims to boost local manufacturing, strengthen domestic supply chains and reduce import dependence.
All about the Construction and Infrastructure Equipment (CIE)Scheme
- Objective: Boost domestic manufacturing of high-value construction and infrastructure equipment while reducing import dependence.
- Approach: Strengthen domestic supply chains and promote greater participation of MSMEs in equipment and component manufacturing.
Scale & Scope of the CIE Scheme
- Broader Programme Under Consideration: Some reports suggest the Centre is considering a much larger incentive programme with an outlay of ₹11,500 Crore over seven years.
- Modalities Pending: The scheme’s exact modalities, including eligibility criteria and the disbursement mechanism, are yet to be finalised.
Rationale: Import Substitution & MSME Participation
- Import Substitution: The scheme aims to boost domestic manufacturing capacity, strengthen the local supply chain, and reduce excessive dependence on imported construction equipment.
- MSME Participation: The Minister underlined the need for greater participation of micro, small and medium enterprises (MSMEs) in the construction equipment value chain.
India’s Construction Equipment Industry
- Global Ranking: India is the world’s third-largest construction equipment market, after China and the United States.
- Industry Valuation: The industry was valued at about ₹97,500 crore in 2024-25 and is projected to touch ₹2.28 lakh crore by 2029-30.
- Employment: The sector currently provides direct employment to about 10 lakh people.
| Important CTC from this article for UPSC Construction and Infrastructure Equipment (CIE) Scheme Production Linked Incentive (PLI) Scheme Capital Goods |
Q. Consider the following statements regarding the Construction and Infrastructure Equipment (CIE) Scheme:
I. The Construction and Infrastructure Equipment (CIE) scheme was announced in the Union Budget 2025-26.
II. India is currently the world's second-largest construction equipment market.
III. The construction equipment industry in India was valued at about ₹97,500 Crore in 2024-25.
Which of the statements given above is/are correct?
(a) I and II only
(b) II and III only
(c) III only
(d) I, II and III
Answer: (c) III only
Explanation
Statement I is Incorrect: The Construction and Infrastructure Equipment (CIE)Scheme was announced in the Union Budget 2026-27, not 2025-26.
Statement II is Incorrect: India is the world's third-largest construction equipment market, after China and the United States, not the second-largest.
Statement III is Correct: The construction equipment industry in India was valued at about ₹97,500 crore in 2024-25, and is projected to reach ₹2.28 lakh crore by 2029-30.