The Indian construction sector is considered to be the country’s second-largest economic segment after agriculture, employing around 32 million people. India is the second-largest producer of cement (2009–2010), the fifth-largest producer of steel (2009–2010) and the largest producer of direct reduced iron (2009–2010) in the world.
The growth of India’s construction equipment industry is directly linked to the growth of the country’s economy, since it is driven by increased investments in the infrastructure and related sectors. The industry is amid an intermediate growth phase in the country and has been evolving over the years, characterized with the entry of major global players. The construction equipment market can be classified into four segments ?earth-moving equipment, concrete equipment, road-building equipment and material-handling equipment and cranes.
Between April 2010 and March 2013, 23 infrastructure projects entailing a cumulative investment of more than US$ 770 million are scheduled to be commissioned. The construction equipment-rental business in India, which currently accounts for only around 7 to 8 per cent of the size of the global industry, is another growth driver. The segment’s contribution to the industry is likely to double to 16 per cent by 2015.
The Government of India (GoI) plans to step up its infrastructure expenditure as a percentage of the national gross domestic product (GDP) from 6.5 per cent in 2008–09 to around 9 per cent by 2014. The GoI has announced that investment in the infrastructure sector is expected to total US$ 1 trillion in the Twelfth Five Year Plan (2012–17), compared with US$ 514.04 billion in the Eleventh Five Year Plan (2007–2012).Sectoral Presentation (November 2010)
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