Domestic construction equipment ind to grow to $15 bn
Government’s steps to clear bottlenecks for bolstering infrastructure development have paved the way for unprecedented growth in the construction equipment industry to over USD 15 billion by 2020, Union Minister Nitin Gadkari has said. He said that given the fast pace of development works in the infrastructure space, there is much optimism in the domestic construction industry. “I am more than confident that given the speed of the projects, the construction equipment industry will grow at an unprecedented pace and exceed USD 15 billion by 2020,” the Road Transport and Highways Minister Gadkari told PTI. Indian Construction Equipment Manufacturers’ Association (ICEMA) has projected the industry to grow to USD 5 billion by 2019-20 from the present level of USD 2.8 billion. Gadkari said after addressing the bottlenecks, now work is picking up pace and “this is just the beginning, people cannot imagine how the face of the infrastructure is going to change in the country”. With this, there would be huge opportunities for equipment manufacturers, he added. At least 10 new express highways will be built soon, he said, adding that highways worth at least Rs 5 lakh crore will be built next year with Rs 5,000 crore marked for greening of highways. “National Highways strength would be taken to 1.5 lakh Km by March 2016 from the present 96,000 km. Fifty lakh jobs will be created. All these are barely a fragment of government’s plans and one can very well understand the huge opportunities for the construction segment,” he added. Apart from highways, huge work has been started to overhaul the country’s shipping and ports sectors with a thrust on waterways, he said, adding that the work has just begun and once it picks up pace there would be no looking back. “We (highways and shipping sectors) are going to contribute at least 2 percent to the country’s GDP,” the minister said. Gadkari said the industry will be encouraged to play a larger role in ‘Make in India’ initiative of the Prime Minister Narendra Modi on the back of infrastructure growth. The decision to build concrete highways would also add to domestic players’ growth, he said. Government’s efforts have started bearing fruits with many highway players, who were earlier shying away from the projects, starting to bid and take keen interest in projects, he added.