India eyes global leadership in construction equipment manufacturing

Union Minister Nitin Gadkari recently called for the amplification of self-sufficiency in the construction equipment manufacturing and the infrastructure sectors

August 18, 2020

The Government has appealed to industries in the sector to develop industrial clusters, technology centres, R&D labs to drive future capabilities.

Research and development capabilities are to be strengthened, technology upgraded and skill development to be taken up to build capacity.

NAREDCO has set up a platform for the sectoral sourcing of affordable raw materials and periodic troubleshooting to improve efficiency.

India’s engineering export during April 2019-January 2020 period was recorded at more than US$64 billion with steady growth in product variety.

As part of the Government of India’s ‘Aatmanirbhar Bharat’ initiative, Union Minister Nitin Gadkari has called for the amplification of self-sufficiency within the Construction Equipment and Infrastructure sectors. The Construction sector is to now work towards bringing down its reliance on imported materials, identifying the right kind of technology to use, and taking on national as well as international collaborations in the interest of obtaining quality financing. Additionally, research and development capabilities within the sector are to be strengthened. 

Given the COVID-19 pandemic, the efforts of the construction sector have been directed towards strengthening local business ecosystems across the nation. With the support of industry bodies like the National Real Estate Development Council (NAREDCO), a platform has been developed wherein supply chain integration, the sourcing of affordable raw materials, and the providing of solutions to disruptions are actively taken up. As the Construction sector makes the journey towards recovery, the allied Construction Equipment space will concurrently witness improvement. 

The Construction sector in India is characterized by 100 per cent FDI through the automatic route with FDI limits being raised to 100 per cent for the construction of Industrial Parks and Special Economic Zones (SEZs). The sanctioning of smart cities through the Smart Cities Mission and the Pradhan Mantri Awas Yojana give the sector and its allied industries impetus to expand the scope of operation. 

The National Infrastructure Pipeline (NIP) announced by the Government of India will seek to improve roadway connectivity, further, the pace of Urban Housing, enhance railway infrastructure and develop capabilities in renewable energy and irrigation. The NIP which is worth US$1.4 trillion will prepare the economy for its transition into an urbanized and technologically empowered economy. This, in turn, would increase national demand for quality construction equipment in addition to allowing for an exchange of best practices with collaborators both national and international. 

India’s Engineering export as of the April 2019-January 2020 period was recorded to be at US$ 64.03 billion with 25 nations serving as chief importers of India’s technological expertise. The Construction Equipment industry is consequently expected to witness an increase in revenue to US$ 5bn by 2020. With projects like the National Infrastructure Pipeline (NIP), the Construction Equipment space in India can expect to see a significant boost in demand and the creation of world-class tools for growth.