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Construction is the installation, maintenance, and repair of buildings and other stationary structures, as well as the construction of roadways and service facilities that form fundamental components of structures and are required for their operation. Construction encompasses the processes involved in constructing buildings, infrastructure, and industrial facilities, as well as related operations, from start to finish.

Scenario of Construction Equipment Sales in India

Sales of construction equipment - a barometer of economic activity - are showing a healthy increase of double digits in the ongoing financial year on the back of increased government spending on infrastructure projects, especially in rural areas. The industry estimates sales of construction equipment (domestic sales and exports) to grow 15-20% in FY23, compared with an 8 percent fall last fiscal year. Even though exports grew 60.5 percent to 7,802 units in FY22, local sales fell 11.4 percent to 77,583 units.

During last financial year, the industry output declined by about 8 percent due to a fall in demand for road construction and earth-moving equipment. However, with the increase in the Government's focus on infrastructure investment to increase economic activity would, in turn, also help boost demand for construction equipment. But a steep rise in input costs and constraints in the supply chain are the major area of concerns for construction equipment sales in India.

Growth of Construction Industry in India

The Construction industry in India consists of Real estate as well as the Urban development segment. The Real estate segment covers residential, office, retail, hotels and leisure parks, among others. While Urban development segment broadly consists of sub-segments such as Water supply, Sanitation, Urban transport, Schools, Healthcare, the construction development sector consists of townships, housing, built up infrastructure and construction development projects and construction (infrastructure) activities. The construction Industry in India is expected to grow rapidly at CAGR greater than 10% and reach $1.4 Tn by 2025. The central government has budgeted a 36 percent increase in its capital spending to a record ₹7.5 lakh crore this fiscal year, with a special focus on infrastructure development to spur growth. It has expanded the scope of the National Infrastructure Pipeline to include 9,335 projects (from 6,835 projects at the time of launch), with total envisaged investments ₹108 lakh crore during FY 20 to FY 25. Among others, the scheme to provide piped drinking water to rural homes, building of smart cities, commencement of new metro rail development projects and construction of new airports at Navi Mumbai (Maharashtra) and Jewar (Uttar Pradesh) will trigger growth for the construction equipment industry.

Benefits to the small contractors across India

Many small contractors in the field of T & P rental, civil construction, Electrical, Piping etc from the states like West Bengal, Jharkhand, Bihar & Chhattisgarh shall get small contracts in construction projects. Thus it will be double benefits to civil construction and infra industry in India.