New Delhi, July 15 -- Following a subdued start to FY2026, Rating agency ICRA projects a turnaround in the Indian mining and construction equipment (MCE) industry in the latter half of the year, driven primarily by renewed government-led capital expenditure.

"Given the observed weakness in domestic demand during Q1 FY2026--which is expected to persist into Q2 as monsoon conditions impact the construction sector--industry recovery hinges on the improved traction in H2 FY2026," said Ritu Goswami, Sector Head, Corporate Ratings, ICRA.

The report further reveals that the sector witnessed a muted performance in Q1 FY2026, with volumes dipping by 1 per cent year-on-year due to multiple headwinds, including early monsoons, unseasonal rainfall,...