According to an ICRA report, demand in the mining and construction equipment industry would recover towards the end of the current fiscal followed by a sharp growth in next financial year. The report said that 2016 promises to be a better year for most of the product segments as a result of the ongoing policy measures leading to absorption of surplus inventory in the market.

?Scale up in demand for mining and construction equipment (MCE) is often non-linear, with assured job orders and cash flows triggering strong buying, as construction activity picks-up momentum,? it said.

In the last one year, the government has announced several policy measures aimed at expediting project executions and fast-tracking approvals to kick-start investment cycle. However, the on-ground pace of movement has been impeded by variety of factors including sector specific constraints, demand dynamics, tight credit availability and high indebtedness of participants, the report said.