Infrastructure Slows, Export Growth Cushions Construction Equipment Market

Sales of construction equipment fell 9% in domestic markets this fiscal year, with challenges in infrastructure projects affecting demand. Exports, however, surged 28%, balancing overall decline to 5%. ICEMA highlights the need for strong capex and government project awards to boost the industry.

Sales of construction equipment in the domestic market have fallen by 9% to 81,566 units in the first nine months of this fiscal year, underscoring slowed infrastructure activity and project execution challenges, as reported by the Indian Construction Equipment Manufacturers' Association (ICEMA).

In a statement, ICEMA highlighted that while domestic sales saw a downturn, exports of construction equipment grew significantly, rising to 12,469 units from 9,733 in the previous period. This robust export growth helped to cushion the total sales decline to just 5% compared to the previous year.

ICEMA President and CEO of JCB India Ltd, Deepak Shetty, stated the domestic market remains critical and urged for substantial capital expenditure in upcoming budgets, which is essential for invigorating infrastructure-related projects.

(With inputs from agencies.)