Happy faces all over. CII Excon 2017 sees positive growth of industry, stalwarts assume the demand levels match 2009 -11 levels
Recent infra push by the government has pumped up more energy into overall atmosphere at EXCON 2017. Almost all the stalwarts from the industry have observed that the equipment industry will be at its new massive in the coming years. Most of them observed that after 2011- 12 the growth now is seen progressing at a speed. It was observed that compared to the last EXCON this year the footfall was more of the customers as well as the response was positive.
As it is seen that the investments in infrastructure like developing the roads, metro’s is seen increasing and so the need of equipment’s will also be increasing. It is observed that the investments in infrastructure always is the main key to sustained growth in any country. Anand Sundaresan, Member Excon 2017,Vice Chairman & Managing Director, Schwing Stetter India Pvt said, “Growth in the construction equipment sector is going to progress for sure. India is one of the countries in the world where simultaneously metro rail project are going in different cities increasing the need of the equipment’s related to the same.”
Sundaresan was supported by Vipin Sondhi, MD and CEO, JCB India Limited who said “Through continual innovation, range of intelligent machines is being used in infrastructure projects, and not only in India, but also in over 85 countries where JCB’s ‘Made in India’ machines have been exported to. JCB India’s pavilion theme was resonated with the theme of Excon 2017 of Fuelling Next Gen Infra building by using smart and innovative technologies.
NITI Aayog chief executive Amitabh Kant during EXCON had said, “Government should offer well-structured and de-risked projects along with a good dispute redressal mechanism if it wants to attract private sector participation in the infra space. Government needs to create a series of projects, which should be put out in the market for the private sector to participate. These projects must be well-structured and totally de-risked,”
Also here Union Heavy Industries Minister Anant Geete assured the construction equipment industry that the government will give them full support and added government is keen to spend up to Rs 8 trillion in the coming years for infrastructure development.
Infrastructure investments are among the main growth drivers of the construction equipment industry. The Planning Commission of India estimates total infrastructure spending of about US$ 428 billion during the 11th Five Year Plan (2007-12) and foresee to double India’s infrastructure investments to about US$ 1 trillion for the 12th Plan (2012-17). The Government of India has granted sops, including a large number of special economic zones (SEZs), to the capital goods industry of which construction equipment is a part; especially with an impetus to increase exports.
To conclude it will it can be said that after 2011, 2017 had seen a growth in equipment sector. The domestic construction equipment industry which peaked in 2011 went through a down-cycle for four years from 2012 until 2015. And so, it is rightly said that this year as an industry, construction equipment industry will surpass our previous best year of 2011 with a growth of 14 per cent.