The ASSOCHAM report states, India has a significant annual growth in the material handling equipment market, mainly in the construction equipment sector.
Material handling equipment market in India is highly categorized into various domain, but construction equipment sector stands as a performing asset till date. Thanks to the infrastructure expenditure and a significant demand for innovative construction for commercial spaces. The study report states that the market had no effect due to GST (Goods & Service Tax) implementation and demonetisation.
Government has been a significant driver for the consistent growth exhibiting flexible laws and regulations for the construction market. The study further tells that the 2018 laws and a dignified approach triggered the market development and resulted into rise in exports making it easy to access untouched markets.
Construction of roads, highways, malls & metro lines in urban areas also have been the major drivers for growth of material handling equipment market. Earthmovers and mining equipment find significance for land clearance activities in the hilly areas. Adding more, the quarry segment displayed a significant rise in demand from the railways, irrigation and road construction sector, jointly.
OEM’s have displayed a maximized capacity utilisation and most of them have gone beyond the production of equipment like hydraulic excavators and other specialized equipment. OEM’s are now emphasizing on exports to augment their capacities. In this regards, the demand for Indian Backhoe Loaders in African countries is highly on the rise. Revenue generation in the material handling sector has always been a great concern.
At present, the government announces the deployment of public-private partnership for the road construction and awaits for private ventures to get the ball rolling. With a vision towards minimizing the spends in capital expenditure for infrastructure, the government plans to pump economic growth.