“India does not have any financial constraints to implement its planned infrastructure projects. We will be constructing 26 additional national highways, constructing roads and privatising 60 coal mines. These will create new opportunities for the Construction Equipment industry too,” said Shri Nitin Gadkari, Minister of Road Transport & Highways while addressing ICEMA Annual Session 2022. Inviting the Indian CE industry to partner the government in its endeavour to achieve infrastructure led growth, the Minister highlighted that the Central Government had made significant headway in the pace of infrastructure construction across sectors including roads and highways, expressways, ports, airports, port connectivity projects.
Shri Gadkari was the Chief Guest at the Inaugural Session of Indian Construction Equipment Manufacturers Association’s Annual Session 2022.
While highlighting that the privatisation efforts of the government are likely to bring in newer technologies, he urged the Indian Construction Equipment industry to enhance mechanisation and bring innovative technologies to road construction and other infrastructure sector to fast track the growth of India’s infrastructure.
Mr Gadkari further added that “The scope of construction in India is immense, given the government’s roadmap backed by adequate funding, however, cost of construction needs to be minimised to make the project financially viable. This has to be achieved by introducing innovative technologies, most importantly through alternative fuels.”
Mr Dimitrov Krishnan, President ICEMA and MD, Volvo CE India Pvt Ltd said, “Demand of equipment in the past fiscal was moderate with the industry recording an 8% decline. However, exports grew by 60% based on robust global demand.” Mr Krishnan expressed optimism for the future saying that with a 37% increase in infrastructure outlay by the Government under the National Infrastructure Pipeline and the concomitant structural reforms being rolled the demand of construction equipment is expected to gain momentum in the medium term. He also expressed that inflation would continue to remain a challenge for pushing demand upward
The speakers at ICEMA Annual Session 2022, representing international and Indian stakeholders such as policy makers, equipment manufacturers, researchers and economists remained optimistic about the Indian CE industry’s growth prospects. They hailed this industry’s role in catalysing the country’s economic growth in the past as well as in the future. While the CE Industry in India faced several headwinds in the last two to three years, including COVID-19 related disruptions, spiralling raw material prices, newer emission regulations, equipment sales the industry is well prepared to deliver on the upcoming demand characterised by heightened levels of mechanisation.