Indicators are hinting that the economic momentum is back in India. The Index of Industrial Production shows capital goods output rose 11 per cent in April and slow moving projects are reviving. However, Stanley Morgan Report predicts that the actual growth momentum will pick up in Q2FY15-16 while exports may rise from the second half onwards.
There is an expectation of economic recovery driven by measures to strengthen infrastructure and smoothen out bottlenecks; all driven by the government, as it is in the process of enacting reforms that will be conducive to the economic and capex recovery.
The government´s capital spend in H1 is likely to jump by 25 per cent as it aims to revive investment by-front loading budgeted public expenditure on infrastructure. In turn, this will boost capex, which will be translated into more business for the equipment manufacturers.
What´s more is good news for roads and coal mining sectors: Prime Minister Narendra Modi is all set to review the highway projects on July 2 with Nitin Gadkari´s road ministry, which has made visible progress in terms of fast tracking project awards; formalising policies for the exit of concessionaires, one time infusion of funds in lacking projects; new model for project implementation and also trying to attract investments from foreign countries like Malaysia, Spain and Japan. Further, the auctioning process for eight more coal blocks has begun. Undoubtedly, all the above seemingly looks futuristic, many would question the scenario today, as the investment cycle is yet to begin. But, a little patience with all is the order of the day.
Coming closer home, the onset of the monsoons has brought cheer to the agri producers, but an obvious gloom descends on the construction activities. Now it is time for the construction industry to recharge batteries, fully repair and maintain equipment and gear up for the next work challenge - a boon for the after-market service providers, develop skill sets and to resolve all pending design, planning or commercial issues with their respective clients.
Furthermore, this month, we train our focus on hydraulic excavators, asphalt plants and tower cranes. All three are critical construction equipment, expected to play a key role in the development of India´s infrastructure in the near and distant future. And, we are playing our part by bringing forth the latest happenings in these equipment.
Continuing the new columns introduced last month: Tower crane rentals are on the rise; used grader sales is booming; we feature safety on tower crane and women also being trained in construction skills. Additionally, we have re-introduced our column on ´Spotlight´, which will feature reputed and upcoming companies promising the best of equipment products or services.
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Shankar Srivastava Managing Editor