INDIA REPORT
The construction equipment industry anticipates a robust 5-year outlook with a projected 15% year-on-year growth. This optimistic forecast is anchored in the momentum generated by ongoing construction projects and increased infrastructure spending. The government’s substantial allocation of $130.57 billion (Rs 10 lakh crore) underscores its commitment to fortifying this sector.
Moreover, the recognition of the scale and technological prospects within the construction landscape further emphasizes the strategic importance of advancements in this domain.
Source: Times of India: Read The Article
The construction equipment (CE) sector has undergone significant transformation over the past 2-3 years, marked by major players reaching peak manufacturing capacities and subsequently embarking on expansive growth initiatives.
Fiscal year 2023 marked a noteworthy achievement as the CE industry surpassed the 1 lakh unit sales milestone for machines. Projections for fiscal year 2024 suggest a sustained growth trajectory ranging between 12-15%, according to industry data. In terms of revenue, the sales figures for FY23 amounted to an impressive top line, exceeding $6 billion.
This industry upswing is fortified by national-level initiatives, including the National Infrastructure Master Plan- Gati Shakti, the National Infrastructure Pipeline (NIP), and the National Monetization Pipeline. These strategic policies not only attract investments for infrastructure development but also contribute to an overall industrial growth surge, presenting novel avenues for sectoral development.
Despite these positive indicators, the sector faces some negative factors due to the political climate. The government’s proposal for a substantial Rs 10 lakh crore capital expenditure (capex) in the current financial year, representing a 37.4% increase from the revised estimates for 2022-23, underscores a heightened focus on infrastructure development.
However, the impending elections and associated political uncertainties introduce an element of caution, potentially adding a degree of volatility to the industry’s outlook. As the CE sector continues its expansion amid these dynamics, strategic adaptability and risk management become crucial for sustained success. PSR
Aditya Kondejkar is Research Analyst – South Asia Operations for Power Systems Research
