Similarly, Concrete equipment witnessed a growth, Railways and Metro. Material Handling Equipment (MHE) growth was from a mix of Road & Railways, Metro segment. Material processing was largely led by the Quarry segment, which supplies aggregates to Road Construction, Railways, Irrigation sector and Real estate, noted the joint study.

The Indian construction, mining equipment industry continues to be highly dependent on the demand for Backhoe loaders and Hydraulic Excavators. The Backhoe Loader alone contributed to 40% of the overall sales by volume during FY 2017-18, a very India specific phenomenon. Backhoe Loaders in china account for hardly 0.5% of overall construction equipment sales while in North America it accounts for 8.5%, reveals the joint study.

Capacity utilisation among Original Equipment Manufacturers (OEMs), is above 70% levels. Most of them have expanded and some others are planning expansions in equipment like Hydraulic Excavators, Wheel loaders and other specialized equipment. OEMs are focusing on exports to improve their capacity utilisation. The interest in Indian Backhoe loaders in certain African countries is on the rise.

Recently there have been spurts of government announcements particularly in the roads sector to kick start growth through public spending till private investments kick in. The Government has decided to go down the route of massive increase in targeted spends in capital expenditure and infrastructure to revive economic growth.

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