The larger picture of various market researches shows growth for the construction equipment (CE) industry. The government's elbow room to spend on projects is under squeeze but given the forthcoming elections, its priority will be keep the momentum going. Alternate room for finance is being created. Schemes to appease the MSME sector have been launched. GST is likely to be reduced for most items as the slab of 28 per cent is likely to be only for luxury items. Further, GST exemption limit is likely to be raised to Rs 75 lakh from current Rs 20 lakh. This is likely to relieve nearly two million assessees. Orders will rain for keeping the engines chugging along through 2019. But the challenges will begin in 2020. The prospect of a weak government would impact projects during 2019 which would see a slackening in demand in 2020. Further, the other big challenge to follow in 2020 is æemission regulations'. As the government plans to implement the BS (CEV/Trem) IV regulations for off-road equipment by October 2020, the equipment OEMs and engine manufacturers have to work on the designs to meet the new emission requirements. This may also result in escalation of production cost for equipment, leading to an upward revision of equipment cost.
At the bauma CONEXPO INDIA 2018, held last month in Delhi, we interacted with the exhibitors and industry stakeholders on their views on the industry in 2019 and beyond. While general elections and the new emission regime were the two major instances they highlighted, they also mentioned the currency fluctuations in the international market which affect the import of components and equipment. In spite of these challenges, the industry is looking for a reasonable growth in the long term. Read the Feature on post-bauma CONEXPO INDIA for an overview of the event and views of industry leaders about the market outlook.
Earthmoving equipment is the largest-used equipment category in Indian infrastructure projects. Any trend on the infrastructure development and construction in the country will have a major influence on the prospects of earthmoving equipment market here. With construction projects growing bigger and project execution time getting shorter and stringent, productive and efficient machines have a major role to play in meeting these demands. The Cover Story elaborates how earthmoving equipment OEMs are working on to offer technologically superior and value-for-money products that can provide optimum result and better return on investments for the users.
We wish all our readers a Happy and Successful New Year 2019!