Construction equipment sales, a barometer of economic activity, should breach the 2018 peak of around 100,000 units next year, paced by increased government spending on infrastructure projects, as per major industry players.
The Centre has budgeted a 36% increase in its capital spending to a record Rs 7.5 lakh crore this fiscal year, with a focus on infrastructure development to spur growth. Despite the pandemic, road construction activity also has been strong - both in FY21 and FY22. Last year, the construction activity reached close to 29 kilometers per day. With an increase in tendering activity road construction is set to grow further this year.
Overall, the market is poised for growth in the next few years and is expected to become the second largest in the world for construction equipment by the end of the decade. India is currently the third largest for the industry, after the US and China.