Construction equipment industry is seeing signs of growth: Icema report

Bengaluru: After four years of decline, the construction equipment industry is seeing some signs of growth in 2015-16, said a report released on Wednesday by the Indian Construction Equipment Manufacturers’ Association (Icema).

The construction equipment industry is a proxy for the health of the country’s infrastructure sector.

The industry has a current size of $2.8 billion and is expected to grow to $5 billion by 2019-20. Around one million people are directly employed in the sector.

The slowdown in infrastructure projects hampered the sector, so much so that from 70,000 units of construction equipment in 2011, the industry fell to 45,000 units by 2014, said Anand Sundaresan, president of Icema, an affiliated body of the Confederation of Indian Industry.

The report said overcapacity built in earlier boom years is expected to be utilised before fresh investments are made.

Union transport minister Nitin Gadkari, who released the report, said the government is working on ways to drive growth in the construction sector.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.