Indian Infrastructure industry

Infrastructure sector is a key driver for the Indian economy. Currently India’s infrastructure spending is 8% of GDP which is required to augment further to sustain economic growth. India’s investments in infrastructure in past ten years has made it second fastest growing economy of the world after China.

India needs Rs 31 trillion (US$ 454.83 billion) to be spent on infrastructure development over the next five years, with 70 per cent of funds needed for power, roads and urban infrastructure segments. The Indian power sector itself has an investment potential of US$ 250 billion in the next 4-5 years, providing immense opportunities in power generation, distribution, transmission and equipment.

The Indian construction equipment industry is reviving after a gap of four years and is expected to grow to US$ 5 billion by FY2019-20 from current size of US$ 2.8 billion.

Going forward in the XII Plan period (2012- 17), the Government is expecting about half of the total investment requirement of US$ 970 billion in the infrastructure sector to come from private sources, including FDI. Over a decade (2002-2012), private sector has invested approximately US$ 250 billion in various infrastructure projects.

Major exports of Infrastructure products in the year 2015-2016 were worked monumental/building stone & art; mosaic cube, granules; articles of iron or steel nes; bars & rods of stainless steel nes; angles, shapes; glazed ceram flags & paving, hearth/wall tiles; mosaic cube

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Highlights of Indian Infrastructure industry

  • Equipment sales are estimated to expand at a CAGR of 6.18 per  cent to reach 96,700 units by FY18 from 50,000 in FY07
  • Equipment sales reached 68,200 units in FY15
  • The construction equipment industry’s revenues reached to US$   6.5 billion by FY14
  • Revenues increased at a CAGR of 8.38 per cent during year 2007-14 and is further estimated to rise at a CAGR of 13.1 percent on rapid infrastructure development undertaken by the Government of India
  • Global construction equipment industry is  expected to grow at a CAGR of 7.7 per cent during year 2012-16

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