The year started with venues opening up slowly after a lull in the last two years. In line with the growth of the industry, the 11th edition of Excon—termed South Asia’s largest construction equipment (CE) and construction technology trade fair—will take place at the Bangalore International Exhibition Centre (BIEC) from May 17-21.

The event will be happening at a time when our economy is on the path of transition and there is renewed confidence among industry players on the revival of the economy against the backdrop of robust policy measures and a major thrust on infrastructure development by the government. With the Indian government finally lifting the ban on international passenger flights after two years, Excon could witness more participation from international companies.

The key elements that will have enhanced focus this year will be on the alignment of its theme – “Building India for a New World – Competitiveness, Growth, Sustainability, Technology”. Some of the highlights include an exclusive focus on alternate fuels, women in infrastructure, finance plaza besides sustainability, MSMEs, digital transformation among others.

With major announcements in the Union Budget [this year] including the construction of 25,000 km of additional national highways, Excon will play an important role in the adoption of world-class technologies for speedy implementation of infrastructure projects in the country. Most of the companies have already planned to launch futuristic and innovative products during Excon. According to a recent research report from ICRA, the demand for mining and construction equipment (MCE) tapered from Q1 FY2022 after a record volume in Q4 FY2021, following the second covid wave along with the increase in equipment prices and muted rentals.

After witnessing year-on-year growth in volumes during the first half of FY2022 because of a low base, CE volumes witnessed a decline during Q3 FY2022 which also coincided with a 2.8 per cent contraction in construction gross value added (GVA) during the last quarter.

ICRA also conducted a survey of CE dealerships in March 2022. The findings indicate that about 78 per cent of the respondents expect a YoY volume decline of 10 per cent during Q4 FY2022, however, they expect volume growth of around 7 per cent in FY2023.

The impending growth in the construction industry is expected to have a consequent positive impact on the growth of the CE industry in India. India’s CE industry is expected to be on a growth trajectory on the back of the government’s plans to invest $1.4 trillion between FY20 and FY25 and an environment enabled by the structural reforms.

However, the Indian CE industry’s growth is being stymied by challenges such as rising prices, availability of trained manpower, and access to finance. Both the borrowers as well as the financiers face several challenges in financing the sector. To enable the CE industry to play a critical role in infrastructure development, the finance ecosystem of the country needs to be strengthened.