According to the rating agency ICRA, the mining and construction equipment (MCE) sector is likely to grow by 13-17 per cent during 2017. The demand for MCE grew by over 35 per cent during 2016. ICRA, however, noted that the industry growth this year has been somewhat curtailed despite strong growth during January-February 2017 as the markets were temporarily hit by ambiguities related to emission norms and GST. The growth is expected to be lower in 2018 with an anticipated figure of 8-10 per cent, while for 2019, the industry growth may slow down to around 4 per cent due to elections and high base effects.

On the flip side, focus on renewable energy and high coal inventory impacted equipment demand both in power plants and mines, the outlook on the same continues to be negative. Growth trend for iron ore mining segment is expected to be muted in 2017 due to a subdued demand from steel industry.