Posted By:Infra Bazaar
India, as a country has been growing at a fast pace. So is its economy. India is progressing towards becoming the fifth largest economy in the world with a GDP of over $ 2.6 tn, according to Invest India.
The growing economy comes with responsibility for better infrastructure and providing basic facilities to the struggling communities through it. A well-planned and developed Infrastructure is the first step towards growth of the economy, especially in a developing country like India. India has been rapidly evolving in terms of Infrastructure and construction in the recent years.
Construction sector of India is the second largest employer and contributor to economic activity, employing over 35 million people in the country and comes second to the Agricultural sector. It accounts for receiving the most inflow of FDI or Foreign Direct Investment due to its large-scale employment opportunities. It comes to a surprise that almost 50% of the construction demand comes from the Infrastructure sector while the rest 50% account to Industrial commercial and residential construction projects.
Growth of Construction Equipment Industry
It is estimated that Indian Construction Industry value is more than $126 billion. This is mainly because the Indian Government has realised the potential of industrial, economical growth that the Infrastructure and Construction sector has thus, invested approximately $1 trillion in the 12th Five Year Plan. This will also lead to the increase in demand for the Construction related equipment, leading the Government to invest even $16 billion to $21 billion industry by 2020.
The rise in the construction sector has side-by-side led to the growth of the Construction equipment industry. Apart from just the Government investments, The Industry has witnessed rapid growth in the span of the last five years due to increased urbanization, and population. The construction equipment market in India’s estimated value is over INR 327.4 billion (USD 4.5 billion) by 2020, according to Netscribes.
Several upcoming and on-going Government projects such as construction of roads, airports, national highways, ports and more has led to the boost of this industry in the coming years.
If this wasn’t enough, growth in real estate sectors, increased mining activities, relaxed FDI norms, and private sector partnerships and investments in Government projects are further key reasons for the Construction equipment industry growing and flourishing.
The Construction Equipment industry overlooks a great future ahead in India. Apart from the fast-paced growth, the industry is evolving with the growing trends and technology to adapt itself in order to smoothen and fasten the construction processes. Use of AI in the industry has led to various upgrades in the equipment like tracking features, robotics tractors, and mining equipment, specialised non-road vehicles and so on.
Several construction companies both India-based and abroad are coming up with numerous new ideas and technological innovations due to the bright future of the Construction equipment industry.
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