India’s mining technology and equipment market eyes $6.8 billion-$8.3 billion opportunity

Mining expansion creates a larger supplier market

India’s mining equipment, technology and services sector could offer an investment opportunity of $6.8 billion-$8.3 billion as the country expands mineral production, auctions more mines and integrates digital systems into operations. Tushar Chakraborty, Executive Director at Deloitte, presented the estimate at the Outlook MSME Growth Conclave – Odisha 2026, according to Outlook Business.

The forecast covers more than conventional machinery. It includes technology and services used across mining operations and fleets, creating potential demand for equipment manufacturers, software providers, maintenance specialists and financing companies. Chakraborty said the METS sector could generate more than 20 million jobs by 2030, although Outlook Business did not provide a detailed breakdown of the employment estimate.

Coal and iron ore underpin equipment demand

Coal remains a central driver. India’s coal production has crossed 1 billion tonnes, while Coal India alone accounts for more than 800 million tonnes, Chakraborty said. Odisha produces more than 30% of the country’s coal, giving the state an important role in demand for excavation equipment, haulage fleets, processing systems and related services.

Mine auctions are widening the addressable market for suppliers. Around 136 coal mines had been auctioned by December 2025, followed by two additional rounds. Estimated investment in coal stands at ₹41,600 crore, which is also expected to increase demand for equipment and fleet financing. Limestone and other mineral segments are projected to record strong growth, broadening the opportunity beyond coal.

Ferrous mineral output is rising as well. India produced around 289 million tonnes in FY25, with production crossing 300 million tonnes in FY26 and expected to reach about 450 million tonnes in the coming years, according to Chakraborty. More than 40 iron ore blocks were auctioned in FY26. Copper production, meanwhile, is growing at a compound annual rate of 12.6%.

Digital mining expands the competitive field

Technology is becoming more closely integrated with mining equipment and daily operations. That shift gives suppliers opportunities in areas beyond the sale of heavy machinery, including fleet management, operational monitoring and other digital services. It may also increase the importance of after-sales support and the ability to deploy technology across geographically dispersed mines.

Foreign suppliers are already engaging with the market. More than 40 Australian METS-led organisations are working with Indian companies, Chakraborty said. Their presence indicates international interest, while expanding production and auctions may create further openings for partnerships between overseas technology companies and Indian equipment makers, service providers and mine operators.

Financing capacity will shape market access

The expected rise in mining capital expenditure makes access to finance a practical constraint as well as a commercial opportunity. Mine operators and contractors need to fund equipment purchases and fleet expansion before new capacity reaches production. Banks, leasing companies and other financiers could therefore participate in the sector’s growth alongside machinery and technology suppliers.

The $6.8 billion-$8.3 billion estimate remains a forecast rather than committed spending. Its conversion into orders will depend on the timing of mine development, investment execution and technology adoption. Even so, coal output above 1 billion tonnes, rising ferrous mineral production and successive auction rounds provide equipment suppliers with a measurable pipeline to assess.