In recent years, emerging economies like India, due to their relatively lagging domestic infrastructure development, have presented vast growth opportunities for the engineering machinery sector, leading to an expansion of the market size and becoming an essential potential market for overseas expansion for engineering machinery.

1. Allocating $134 billion, India accelerates infrastructure development: India allocated $134 billion in its 2024 budget for infrastructure projects, indicating the government's emphasis on infrastructure construction. There is vigorous demand in the Indian market for engineering machinery products, with sales of construction equipment growing by 18% and 31% year-on-year in the first and second quarters of the 2023-2024 fiscal year, respectively.

2. Key drivers of sustained demand growth: It is anticipated that India's capital investment in infrastructure will increase by 33%, almost three times that of the 2019-2020 fiscal year. Additionally, the Indian government has proposed establishing an infrastructure finance secretary to increase opportunities for private investment.

3. Development of Chinese engineering machinery enterprises in India: Chinese engineering machinery enterprises, such as Zoomlion, Sany, XCMG, and LiuGong, have achieved certain successes in the Indian market. These enterprises have established local production bases through localization strategies and maintained good cooperation with local companies and governments to gradually expand their market share in India.

4. Market prospects and challenges: While the prospects for the Indian engineering machinery market are vast, it also faces challenges such as policy changes, market access barriers, competition from local companies, and cultural differences. However, the significant growth potential in India's infrastructure development provides a highly promising stage for Chinese engineering machinery enterprises, potentially becoming a new highland for their overseas market development.

This trend is an encouraging sign for Chinese engineering machinery enterprises, which also require addressing challenges and adapting to local market demands to achieve sustained growth in the Indian market.