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India's Construction Machinery Market buoyed by Investment in Infrastructure and Housing

MUNICH/GERMANY, November 27, 2013 - India continues to be one of the most dynamic markets for the global construction machinery industry: In 2016 around 80,000 units are expected to be sold in this very large nation state in South Asia. One important meeting place for the sector is the Bauma Conexpo Show – bC India. The third edition of this International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles takes place from December 15 to 18, 2014 in the India Expo Centre in Greater Noida near Delhi.
 

Growth in the Indian construction industry has slowed markedly in recent months. But long term the prospects are good. One of the main drivers is the need to invest in improving the infrastructure: If economic growth is to be boosted across the subcontinent, then the transport system has to be expanded, the energy and water supply system improved, and capacity extended at ports and airports. According to the Planning Commission of India, the country is investing one trillion US dollars in its infrastructure as part of the current 12-year plan (2012 to 2017), a figure that is twice as high as in the previous planning period.
 
In building construction, the impetus is likely to continue to come from the demand for affordable housing. As the Planning Commission reported, last year the shortfall in affordable apartments was around 27 million. According to Germany Trade & Invest (GTAI), Germany’s economic development agency, the building trades in India are still at a rather low level in terms of quality. Often even new building projects do not come up to international standards, they note. The reason for this is generally a lack of expertise in construction planning and execution. In addition, the level of mechanization is still very low. Consequently it can be assumed that in the coming years the number of construction machines sold in India will continue to rise. While this year – 2013 – between 50,000 and 60,000 units were sold, experts from the British management consultants Off-Highway Research estimate that sales figures for 2016 will be around 80,000 units.
 
In terms of the types of machinery sold most, top of the list in India for many years now have been backhoe loaders, bulldozers and mobile cranes. However, the analysts from Off-Highway Research expect that sales in backhoe loaders, which accounted for over 50 percent of all construction machinery sold in 2012, will lose ground in the coming years to bulldozers, which will increase their market share. Each of these two types of machine is expected to account for a good third of the Indian construction machinery market in 2016.
 
Many suppliers in this sector will gather at bC India in 2014. The last bC India, in February 2013 in Mumbai, attracted a total of 710 companies from 33 countries and more than 28,000 trade visitors.
 
For further information on bC India go to: www.bCindia.com.
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