Trade Analytics
Infrastructure Sector in India
The Indian construction equipment industry's revenues are estimated to reach US$ 22.7 billion by 2020.

Indian Construction Equipments Industry Analysis

Latest update: February, 2017

Indian construction equipment revenues on an uptrend

  • By FY20, construction equipment industry’s revenue is estimated to reach to US$ 5 billion.
  • Revenues increased at a CAGR of 8.38 per cent during FY07- 14 and is further estimated to rise at a CAGR of 2.34 per cent between FY07-20, owed to the rapid infrastructure development, undertaken by the Government of India.
  • In FY16, India construction equipment industry grew at a YoY of around 3.45 per cent over the previous year.
Growth

Construction equipment sale on an uptrend

  • Sale of construction equipment in India is estimated to grow at a CAGR of 6.18 per cent , in volume terms, and reach to 96,700 units by FY18 from 50,000 in FY07.
  • With sale of 76,000 units construction equipments, the industry has witnessed growth at a CAGR of 4.76 per cent during FY07-16.
  • During January 2016 to May 2016, construction equipment industry of India recorded sales of 21,869 units of construction equipment, representing a growth of 47.6 per cent over the same period previous year.
Growth

 

Last Updated: February, 2017

Total infrastructure spending is expected to be about 10 per cent of Gross Domestic Product (GDP) during the 12th Five-Year Plan (2012–17), up from 7.6 per cent during the previous plan (2007–12).

Increased impetus to develop infrastructure in the country is attracting both domestic and international players. Private sector is emerging as a key player across various infrastructure segments, ranging from roads and communications to power and airports.

In order to boost the construction of buildings in the country, the Government of India has decided to come up with a single window clearance facility to accord speedy approval of construction projects.

Significant allocation to the infrastructure sector in the 12th Five-Year Plan, and investment requirement of US$ 1 trillion is expected to create huge demand for construction equipment in India. In the road’s sector, the government’s policy to increase private sector participation has proved to be a boon for the infrastructure industry with a large number of private players entering the business through the public-private partnership (PPP) model. During the next five years, investment through PPP is expected to be US$ 31 billion

Sectoral Presentation (February, 2017)

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