The parliamentary elections in India are over, the BJP-led government has won the majority and formed a new government, and Prime Minister Narendra Modi is known for his quick decision-making and promoting the urgent need for investment. Indian and international trade associations, institutions and companies feel that this could result in some promising possibilities, especially in the construction and machinery sector. These were some of the observation of Messe München GmbH which is hosting bC India in Delhi/Greater Noida from December 15 to 18, 2014.
bC India — the Bauma Conexpo Show – is an international trade fair for construction machinery, building material and mining machines, and construction vehicles, which takes place every two years. The last event held in Mumbai in February 2013 attracted 710 companies from 33 countries and more than 28,000 trade visitors. Following the two events in Mumbai, bC India is holding the third edition in Delhi.
“We have a lot of hope from the new government which we are sure will work hard to ensure projects of national importance are on the ground very quickly. This will be good for infrastructure, for the equipment industry and, of course, for India,” Amit Gossain, President, Indian Construction Equipment Manufactures‘ Association, said.
Raman Joshi, Vice President & General Manager for Asia-Pacific, Manitowoc Cranes, noted: “In an election year there is always uncertainty. Now that uncertainty is over we can look ahead to some prospective developments that we hope will have a positive effect on our industry. With Mr. Modi’s strong background in economic development, infrastructure, and creating a business-friendly atmosphere, we hope he will be able to drive through the necessary changes to push the Indian economy to the next level.”
“Demand for construction equipment is a reflection of broader macroeconomic trends such as interest rates, infrastructure investment and liquidity, which themselves indicate the health of the overall economy. This demand equipment is expected to grow in line with the expansion of real estate development from India’s key urban centres into tier-2 and tier-3 cities,” Ipsos Business Consulting, a leader in construction research and consulting, observed in its report titled Understanding India’s Construction Equipment Market.
According to Ipsos, the global construction equipment market was estimated at Rs. 5,551 billion ($90.5 billion) last year and is expected to reach Rs. 7,310 billion by 2016, representing CAGR of 7.7 per cent. Emerging markets such as China and India are becoming increasingly important on the global stage as key players shift their production bases to Asia to drive revenue by benefiting from the region’s growing infrastructure investment, favourable government policies and mass-scale domestic markets. India’s construction equipment market outpaced global growth trends with the market estimated at Rs. 208.4 billion at the end of last year. Revenue is expected to reach Rs. 461.5 billion by 2016, CAGR of 20.5 per cent.
Sushanta Kumar Basu, President, Builders’ Association of India, said, “Though the growth rate has stabilised recently, the initiative proposed by the new government will certainly rejuvenate the Indian economy to greater heights.”
Confirming that the German market was very positive about the results of the elections, Johann Sailer, Chairman, Association for Construction Equipment and Building Material Machines in the German Engineering Federation (VDMA), stated, “This is the first time since 1991 that a party has won an absolute majority, so the prospects for stability are quite promising. For now, that is having a positive effect on construction-equipment and building-machine manufacturers who do business in India. We are hoping that India will recover now. Prime Minister Narenda Modi is considered business friendly, and expectations are high.”
In other words, the outlook for the industry and, therefore, for Bauma Conexpo Show – bC India – was very positive, Messe München GmbH said.