Excon comes in at an opportune time as India?s GDP registers 7.3 per cent growth; manufacturing PMI rises to 51.30; industrial production is 4.1 per cent; Forex reserves stand at $355 billion; Inflation is contained at 5.1 per cent; Government invests $137 billion in Railways; Indirect tax revenues grow to 39.2 per cent and infrastructure output posts the fastest growth in six months. There is more to come as government plans to enhance investment by $11.3 billion this fiscal in infrastructure; RBI notifies 100 per cent FDI in construction sector; NHIDCL to award Rs 1.3 trillion worth of highway projects; 2,400 km of EPC road projects already awarded and government targets 2 per cent in GDP through infrastructure.
The new government under Narendra Modi has set the ball rolling once again as there are several economic reforms announced by him to kick start the ailing economy. The current government is also taking rapid strides to boost the country?s infrastructure development. Moreover, bids are being invited again for stalled and new infrastructure projects such as smart cities, high-speed rail corridors, greenfield airports, major ports, port-based SEZs, and housing for all by 2022. The Union Budget 2015 has also emphasised on the removal of bottlenecks in the infrastructure sector. Most of the industry experts are forecasting uptick during the early part of FY 2015-16.
On the other hand, Grand View Research predicts a global construction equipment market size of $208.36 billion by 2020, growing at a CAGR of over 5 per cent year-on-year. The Asia Pacific construction equipment market accounted for over 50 per cent of the overall share in 2013 and is expected to grow at a CAGR of 5.8 per cent from 2014 to 2020. Varied favourable government policies along with infrastructure developments in service sector and IT industry have triggered equipment usage in countries such as India.
Referring to the revival story of India?s economy, the industry experts opine that the construction and construction equipment sector will be the first to experience growth in demand as the investment cycle commences and expects the start within the next six months.
The logical progression of the above will lead to actions by the opinion makers involved in selection and procurement of construction equipment. EQUIPMENT INDIA recognised that the domestic infrastructure sector is witnessing stability from de-growth as the recessionary trends that were plaguing the economy are gradually fading away. In this edition, we present for the first time: ?The SourCE Issue?, featuring the equipment selection criteria and parameters adopted by various heads of plant & machinery and procurement of construction industry leaders.