Demand for construction equipment in India is set to grow in double digits, at least over the next three to five years, supported by the Union government’s strong focus on the infrastructure sector.
This comes against the backdrop of the Union government budgeting for a robust increase in capital expenditure for the next fiscal, with the national highways network to be expanded by 25,000km in 2022-23.
“The construction equipment industry should grow by a minimum of 15% for the next five years. The ?100 trillion National Infrastructure Pipeline and other steps announced as a part of the budget are steps in the right direction,” said Deepak Shetty, managing director and chief executive, JCB India Ltd.
The FY23 budget allocated ?1.99 trillion for the road ministry, which is 69% more than the ?1.18 trillion budget estimate of the previous year. The bulk of the increase in the budget has been earmarked for the National Highways Authority of India, with its allocation increasing by 134% from ?57,350 crore to ?1.34 trillion.
“Additional capital expenditure by states through the increased funding by the Centre would also spur infrastructure and benefit the construction equipment sector. India is also set to unveil an ambitious ?1 trillion programme to build 5,795km of national highways in 117 so-called aspirational districts, added Shetty
