The Indian construction and infrastructure segment has witnessed a turnaround over the last few years with some organised growth visible in various construction activities. The Central government's schemes such as Smart Cities, Pradhan Mantri Gram Sadak Yojana (PMGSY), Golden Quadrilateral, 'Housing for All' and similar projects have propelled construction activities over the past couple of years. Meanwhile, mining has also experienced some momentum in its activities during this period.
All these positive developments have been a booster for construction equipment manufacturers in the country. More focus by government agencies such as the National Highways Authority of India (NHAI) on faster implementation of projects conforming to the set quality standards has made contractors look for better equipment, with innovative features and productivity. This changing approach of contractors is going to have a far-reaching impact on equipment manufacturers by way of improving the quality with more technology and automation into the machines that can improve the Total Cost of Ownership (TCO), improved life cycle cost, high degree of emission compliance and overall productivity.
According to industry reports, India needs Rs 31 trillion ($454.83 billion) to be spent on infrastructure development over the next five years, with 70 per cent of funds needed for the power, roads and urban infrastructure segments. Reflecting this positive trend, the Indian construction equipment industry is reviving after a gap of four years and is expected to grow to $5 billion by FY2019-20 from the current size of $2.8 billion. A recent Off-Highway Research report says says that the robust Indian market is forecast to go from strength to strength. The increased investment and pick-up in project implementation has driven the market to a 40 per cent growth last year. This is expected to drive consistent and steady growth in Indian construction equipment sales for the next five years, and as the industry matures, India could emerge as a significant regional manufacturing hub, says the report.
EQUIPMENT INDIA is exploring this Changing Paradigm happening in the industry, through some insights from industry captains from various equipment segments.