Demand driven by projects
The Indian Construction Equipment Market is projected to cross US$4.7 billion by 2025, on account of anticipated growth in the construction industry, increasing foreign investments, and rising number of smart city projects in the country.
This project was made by a ResearchAndMarkets report the “India Construction Equipment” released 30 Apr 2020.
The demand is expected to continue growing in the coming years owing to the factors such as increasing project sizes, shorter completion time, and demand for customized and multipurpose equipment by end-users.
Government initiatives focused on infrastructure development are further boosting demand for construction equipment in India.
Some of the largest projects include Smart City Mission, AMRUT (Atal Mission for Rejuvenation of Urban Transformation), Metro Rail in urban areas, Bharatmala, and Sagarmala, among others. In addition, government is also supporting the construction equipment market by liberalizing taxation policies for construction industry such as GST and custom duty.
In 2018, the government reduced the GST on construction equipment from 28% to 18%, which will help the construction equipment manufacturers to reduce the overall cost of equipment and other operational losses.
However, the global economic slowdown and spread of COVID-19 pandemic pose a huge imminent challenge for the Indian Construction Equipment Market.
Leading players in the sector are JCB India Limited, Action Construction Equipment Limited, BEML Limited, L&T Construction Equipment Limited, Greaves Cotton Limited, Mahindra Construction Co Ltd, McNally Sayaji Engineering Company Limited, Kobelco Construction Equipment India Pvt Ltd, Apollo Infratech Pvt Ltd and Putzmeister Concrete Machines Pvt Ltd. fiinews.com
