Dublin, April 21, 2020 (GLOBE NEWSWIRE) -- The "Evaluating the Impact of COVID-19 on the Demand for Construction Equipment in India by 2025" report has been added to ResearchAndMarkets.com's offering.
The report will help construction equipment manufacture to get visibility into the demand the trajectory the industry is likely to see over the next 5 years and how public sector spending in the infrastructure sector will be constrained to due to COVID impact, as a result of which, whether or not the industry will see the demand it was anticipating assuming NIP stays on course or in the worst case the Infrastructure agenda takes a back seat.
After agriculture, the construction, infrastructure and real estate segments are the second-largest employment providers in the country. The infrastructure and construction sectors are highly responsible for propelling India's overall development and with intense the focus from Government for initiating policies that would ensure time-bound creation of world-class infrastructure in the country. In 2018, India ranked 44th out of 167 countries in the World Bank's Logistics Performance Index 2018. Foreign Direct Investment received in the Construction Development sector from April 2000 to June 2019 stood at US$ 25.12 billion, according to the Department of Industrial Policy and Promotion.
Some of the marquee investment plans as announced by the Government of India and that promises upswing in demand for construction equipment are as below:
Even though the construction sector was in a slump between 2011 till 2015 with demand for construction equipment witnessed a complete collapse, the sector managed to grow post-2015 and the signs were good until the lockdown imposed across the country due to the COVID-19 virus outbreak. It is being believed that the coronavirus outbreak's impact on the infrastructure and construction segment is expected to be worse than that of the 2008 financial crisis-led economic slowdown. The imposition of Section 144 by state governments and suspension of public transport till April 14 has already impacted manpower mobility and this may even further if the current lockdown proves ineffective.
The lockdown has resulted in various infrastructure project sites staring at closure as it is mainly due to an effect on the labor movement due to the lockdown and also due to supply chain disruptions that may contract further as more states enforce COVID-19 lockdown. The fiscal situation in the construction sector for both the Centre and states is already worsening and continued funding of infrastructure capital expenditure will be a challenge in the near future. Additionally, all these problems will be further aggravated by the relief packages that are being rolled out by many states to support the loss of income caused by the lockdowns. This may further stress the government's ability to spend on the infrastructure over the next one or two years, further dampening the construction and the infrastructure segment.
Finance minister Nirmala Sitharaman recently announced that the state governments have been directed to use the welfare fund for building and construction laborers, which has around Rs 31,000 crore, to help those who are facing economic disruption because of the lockdown. As per Anarock Property Consultants, more than 15.62 lakh units of housing and residential projects are under construction in the top seven cities of the country.
The publisher sees Government cutting down on spending in Infrastructure the sector as on extreme and on another extreme, there is a possibility that the Government eases its focus on current account deficit and does additional borrowing to stick with National Infrastructure Pipeline target of 102 lakh crore spend on Infrastructure between FY20-25. However, given that COVID-19 will drive the Government to increase spending on social and health infrastructure, Rs 1.7 lakh crore relief package announced to provide support to the urban poor. To bail out ailing sectors like Aviation, Hospitality, Tourism, Automobile, MSMEs, it can be expected that a stimulus package may well be the need of the hour to help economic activity get back to its feet at the earliest. How prolonged the lockdown will be is something that nobody knows, however, there are estimates that getting back to normal business will take at least 3 quarters and the after effect may even continue in FY21-22.
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Key Questions Answered
Key Topics Covered:
1. Executive Summary
2. Research Approach & Methodology
3. Construction Equipment market & application landscape
4. Construction Activity in India - Key Trends
5. Key market trends
6. Impact of COVID-19 on the Indian Economy
7. Impact of COVID-19 on the Construction Equipment Sector
8. Decoding National Infrastructure Pipeline - Pre-COVID-19 and Post COVID-19
9. The market for construction equipment market in FY 2019-20 [Equipment to be covered: Backhoe Loader, Wheel Loader, Excavator, Tipper Trucks, Motor Grader, Pavers, Soil Compactors, Fork Lift Trucks, Cranes]
10. Assessing construction equipment usage norms for different industries
11. Assessing procurement norms - lease vs own
12. Key demand growth drivers: Mapping different announced, planned & upcoming Infrastructure projects that will drive demand for construction equipment
13. Projecting demand for construction equipment - Optimistic & Realistic Scenario
14. Competitive Analysis of OEMs in India market
15. User preference for make and type of construction equipment
16. Construction Equipment Financing Market in India
17. M&A Possibilities in the sector
18. GTM portfolio to tap the construction equipment market in India
Companies Mentioned
For more information about this report visit https://www.researchandmarkets.com/r/4c02u2
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