India's construction equipment market is poised for solid growth over the next five years and is projected to reach $4.7 billion by 2025, owing to high demand for construction equipment, especially in the earth moving segment, according to TechSci Research, a research-based global management consulting firm.

Over the next five years, construction equipment sales are expected to grow on account of rising demand from commercial projects and mining, housing and agriculture sectors, it stated.
 
The competition in India construction equipment market is expected to intensify in the near future owing to continuing collaborations among construction and technology companies coupled with strong and expanding sales network of leading players across the country.
 
In addition, government is also supporting the construction equipment market by liberalising taxation policies for construction industry such as GST and custom duty.
 
In 2018, the government of India reduced the GST on construction equipment from 28% to 18%, which will help the construction equipment manufacturers to reduce the overall cost of equipment and other operational losses.
 
Some of the largest ongoing projects in India that are boosting the country’s construction equipment market include Smart City Mission, Amrut (Atal Mission for Rejuvenation of Urban Transformation), Metro Rail in urban areas, Bharatmala, and Sagarmala.
However, the global economic slowdown and spread of Covid-19 pandemic pose a huge imminent challenge for India construction equipment market, said the report.
Among all the product types, backhoe loaders and crawler excavators accounted for the largest individual shares in India construction equipment market in 2019, and the trend is expected to prevail during the forecast period, it added.
 
North is the dominating region in the country’s construction equipment market where a huge number of large-scale projects are being undertaken, followed by South, West and East regions, said Karan Chechi, the research director with
"Various upcoming infrastructure projects coupled with rising government expenditure towards construction sector in the country is expected to boost construction equipment market during the forecast period," stated Chechi.-TradeArabia News Service

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