The construction equipment sector in India is poised to attract investments exceeding $4.5 billion over the next 5 to 7 years, driven by surging demand from infrastructure projects.
Deepak Garg, the Managing Director of Sany India, affirms that these anticipated investments will be sourced from original equipment manufacturers (OEMs) and their respective suppliers. Garg shared these insights in a conversation with Autocar Professional during a road show associated with CII-Excon 2023, leading up to the Excon event scheduled from December 12 to 16 in Bengaluru.
In FY23, the construction equipment (CE) industry achieved a historic milestone by exceeding 100,000 unit sales, with anticipated growth of 12-15% in FY24, resulting in sales of over $6 billion in monetary terms, as per industry data.
According to estimates from the Indian Construction Equipment Manufacturers’ Association (ICEMA), a consortium representing over 80 companies, India’s construction industry is projected to reach a valuation of $1.4 trillion by 2025. This development is instrumental in India’s efforts to strengthen its infrastructure in pursuit of the ambitious economic growth target of $5 trillion.
ICEMA points out that a range of national-level initiatives and policies, including the National Infrastructure Master Plan – Gati Shakti, the National Infrastructure Pipeline (NIP), and the National Monetization Pipeline, have generated momentum in attracting investments for infrastructure projects, fostering industrial growth, and creating new opportunities.