The Indian construction equipment industry has witnessed an 8 per cent fall in sales of construction equipment to eighty-five, 385 units in 2021-22 fiscal, a report said on Friday.
As per the data released by Indian Construction Equipment Manufacturers Association (ICEMA), the construction equipment (CE) industry had sold 92, 470 units in FY21.
The earthmoving equipment segment which accounts for nearly three-fourths of the total construction equipment sales in India, experienced 14 per cent decline in growth during FY22, while road construction gear sales were lower by 10 per cent during the particular same year.
However , the other three segments namely material handling, material processing and concrete equipment registered positive growth during the particular year. Exports of construction equipment also increased significantly by 60 % in FY22 over FY21.
Dimitrov Krishnan, President ICEMA and Managing Director Volvo CE India Pvt Ltd said, “A host of factors pulled the Indian CE industry sales down during the financial year 2021-22.
“The 8 percent volume de-growth registered during the period under review is largely owing to the second and third waves associated with COVID-19 pandemic, which adversely impacted the pace of construction activity in the country upon one hand, on the particular other, continued to bring supply chain disruptions, thereby constraining the industry’s ability to cater to the emerging demand. ”
ICEMA further said the particular industry is hopeful associated with a strong recovery throughout FY23 on the back of an enhanced export potential and the government’s continued thrust on infrastructure development through National Infrastructure Pipeline, Gati Shakti Masterplan, and National Monetisation Plan, constitution of National Bank for Financing Infrastructure plus Development (NaBFID).