Construction equipment industry to reach $5 billion by 2020

BENGALURU: Poised to play a larger role in 'Make In India' initiative of the Narendra Modi government, the domestic construction equipment industry has a potential to grow about two-fold to $5 billion by 2020.

"The domestic construction industry is set to become a driving force in 'Make in India' initiative. From a $2.8 billion industry at present it has the capacity to grow to over $5 billion by 2020 on the back of infrastructure growth which is bound to take place under the present regime", CII senior executive and EXCON Chairman Vipin Sondhi told PTI.

EXCON is the international construction equipment and technology trade fair beginning here tomorrow that will see participation from about 800 companies from 22 countries. It is South Asia's largest construction equipment and technology trade fair.

The latest data available with the industry show the slowdown earlier has resulted in conservative projection for construction industry to $5 billion in the next five years but it is bound to grow exponentially post 2020 on the back of slew of steps by the current government.

Previous reports had projected $20 billion growth for the industry by 2022 but three years of de-growth had led to revised $5 billion projection, Sondhi, who is also JCB India MD & CEO, said.

Sondhi said de-growth has stopped and amid the proactive measures by the government, especially in the highways sector, the industry is set to grow manifold and bound to bolster economic growth.

"There is much optimism in the industry. A lot of initiatives have been taken in the highways sector with several key policy measures to roll out stuck projects and there is a need to replicate it across various segments", Sondhi said.