Construction equipment sales to touch newer highs

The increased focus on matching infrastructure deficit, which is largely driven by the huge infra investment by the government, will finally have a multiplier impact on the economy of the country. As of now, this investment is being carried out both at the state as well as the Central levels as up till now Mumbai has single handedly handed out contracts worth ₹68,000 crore and this would require anything between ₹12,000 crore and ₹15,000 crore of construction equipment, Vice Chairman, Srei Infra Finance, Sunil Kanoria, was quoted as saying in a recent media interaction. He further added that the growth in infrastructure is driven by government expenditure which will surely have a multiplier effect on the economy.

As a matter of fact, during the first three-and-a-half years of the government of the day, macro economy had performed well with oil prices and interest rates remaining low at the global level but at the same time things are in shambles at the micro level. There is no doubt that there are challenges, but at the same time India's micro economy is showing signs of improvement and this indicates that India's is destined to grow between 6% and 8% in the near terms but a good government can push it to a whopping 8-10%. In the prevailing economic scenario, his company's remodeling plans will largely be technology driven to improve operational efficiencies, neutralizing risk factors and foraying into new global partnerships. It is worth mentioning here that the company initially started with CME, and now also have IT, medical and agriculture equipment in its portfolio. The company is optimistic that the share of leasing in its portfolio is expected to increase to about 40% from 15% in the next couple of years.