On the 23rd of June, UK public voted to leave the European Union. The news not just sent the UK markets and currency into turmoil but sent shockwaves that were felt all the way in India as well. The historic vote marks the rise of a new phase of uncertainty for the international markets. Its impact on currencies, trade and most importantly on global growth is a matter being discussed ad infinitum but its exact impact is hitherto unknown. It is also not known for sure as to when the divorce will take place as the current UK PM has resigned and his successor will not be chosen before October 2016. And even after the new PM takes office, it would take another year or more for UK to work the nuances of breaking away from the trade zone. One thing is for sure that UK moving out of EU will lead to both UK and EU seeing a phase of prolonged economic slowdown. And in such a gloomy environment, the beacon of India shines brighter still. India still continues to remain attractive on the global stage as its economic growth is on an upward trajectory; Government continues to show commitment to reforms and revival of the manufacturing sector; easing monetary policy and expected revival of consumption thanks to the better monsoon forecasts. So while the short term looks uncertain, the long term picture of India is still strong and attractive.
Indian Finance Minister Arun Jaitley also commented that the impact of Brexit vote on India would not be significant, as the underlying fundamentals of our economy were robust.
Currently, hydraulic tracked excavators have emerged as the best-selling construction category in the country. Driven by accelerated on ground movement and investments in roads and mining sectors, the sales growth is registering a position on the vertical portion of U growth trajectory predicted by the industry analysts.
Growth of other earthmoving machinery is the logical consequence to growth in excavation segment. As such, one is witnessing a similar rise in this category. Increased focus on sustainable and robust urban infrastructure and construction projects across the board require underground construction solutions for all utilities, pipelines, power and water supply; sewerage disposal, waste management and communications. Therefore, use of micro tunnelling and trenchless construction technologies is inevitable. In light of the smart cities initiative by the government, there is a strong likelihood of these technologies being declared mandatory by law. Read our Special Feature on Marsh Buggy, a concept of providing amphibious capabilities to construction equipment.
Monsoons have begun, causing a slowdown in all construction activities. It is time to prepare and upgrade all resources, so that they are in prime condition to meet the challenges thereafter.