The domestic construction equipment (CE) industry may see moderate volume growth this fiscal as dealers have reported a rebound in demand in the second quarter, according to an ICRA report.
The roads and highways sector is expected to bounce back soon with the government's corrective measures to combat slowdown and the large number of projects planned in the coming years. The road equipment players are bullish on the future growth prospects.
Demand for mining and construction equipment post-elections will depend on the function of a stable government and continued focus on infrastructure investments.
The Indian mining and construction equipment (MCE) industry is likely to see a moderation in demand growth which is expected to fall to 4-6 per cent in the medium term, more particularly during CY2019.
According to an ICRA report, opening up commercial coal mining for the private sector and allowing 100 per cent foreign direct investment (FDI) are likely to attract global miners to invest in India.
According to an ICRA report, demand for affordable homes is set to stay healthy, with the market poised to touch the Rs 6.25 lakh crore mark by 2022, supported by a growing population, young demographic profile, shift towards nuclear families and rapid urbanisation.
Brexit as an event will impact the future of the UK and EU. This victory for exit, however narrow, came as a surprise as pre-voting polls predicted the results to be otherwise. The next step is to ratify the Article 50 of the Lisbon Treaty. But before the treaty there are a lot of issues which need to be worked out.
According to an ICRA report on commercial vehicles industry, the M&HCV (Truck) sales will continue to expand at steady pace (up 24.6 per cent).Replacement demand and improving viability of fleet operators are driving the M&HCV sales.
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.
Despite the present day gloom in the market, the future for the construction equipment sector, especially for the road equipment segment in India, still holds much potential as this sector has a profound and immediate impact on the country?s economic growth. Off-Highway Research is optimistic about the growth in demand for road equipment and forecasts growth at a CAGR of 12.67 per cent over the next five years. Agith G Antony finds out more about the positive vibes in the industry.
It seems that we are stuck in the same narrative, which is playing on a loop, told and retold over the past couple of years. The gist of that tale is: even though short-term prospects are not too bright, the slowdown and resultant sluggishness in the CE market is a temporary blip; the long-term growth prospects still look promising
Even though the road sector in India continues to face multiple challenges, a strong pipeline of projects supports long term prospects. Around $180 billion investment is earmarked for the road sector, which is the highest ever investment for any Five Year Plan, and this should have a very positive impact on the construction equipment industry. The prime factor favouring the growth of the road equipment industry is the sheer scale of work still to be done in this sector.
Even though the demand for construction equipment for the road sector has been sluggish in 2012, there still exists tremendous potential for the construction equipment industry, given the infrastructure deficit in the country. However, unfortunately, the government has little fiscal headspace and thus, is unable to stimulate growth by undertaking investment in the infrastructure sector.