The Hindu Business Line : `Demand for construction equipment to go up'

Mr P.G.R. Sindhia (left), Karnataka Minister for Finance, Industry and Infrastructure Development, and Mr Daljit Mirchandani, Chairman, CII Karnataka, at the Excon 2005 — the construction equipment and technology fair in Bangalore on Wednesday. — G.R.N. Somashekar

Bangalore , Nov. 30

AN estimated investment of $200 billion in infrastructure and construction projects in the next five years is expected to drive the demand for construction equipment and technology triggering considerable foreign investment.

The demand growth also would position India as a preferred destination for outsourcing for equipment and engineering and design.

Stressing the point at the Excon 2005, the third annual `Construction & Technology Trade Fair' here on Wednesday, Mr Parasuraman R, Chairman of the Confederation of Indian Industry (CII), Southern Region, said India had the potential to emerge as the hubs for construction equipment, component outsourcing base and design base for equipment and components attracting large investments.

With the Tenth Plan envisaging promising about $100 billion for accelerating the pace of infrastructure development, it augured well for the construction equipment industry.

Speaking on `Construction equipment industry - A global perspective,' Mr John Patterson, JCB Worldwide Managing Director and CEO, said the global turnover in the construction and equipment industry was expected to touch over $52 trillion by the end of 2005-06 against $49 trillion registered last year.

With the opening up of the economy, India had bright prospects in the sector. However, it needed to bring in some changes in the existing labour laws, allow more FDI and reduce the import tariff to boost the industry, he said.

Mr Daljit Mirchandani, Chairman, CII, Karnataka, said the sustainable economic growth and significant increase in purchasing power in urban areas would create more investment opportunities for the equipment industry. A further boost would come for the Government's proposal to $20 billion over seven years under the National Urban Renewal Mission.

Mr Onkar Sunar, Co-Chairman, Excon 2005, said the present Indian market for construction machinery was $1,312.17 million, of which only one per cent was imported. With sudden spurt in infrastructure sector, both import and domestic production was expected to grow to 20 per cent and 30 per cent, respectively.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

More Stories on : Real Estate & Construction

Stories in this Section
Rains buoy fertiliser demand in South

Coastal AP in line of fire as `Baaz' aims to spare Chennai

Economy grows at 8 pc in Q2 — Manufacturing, services are main drivers; some key sectors falter

Coromandel Fert, GSFC ink deal with Tunisian co

Oman, India council to set up panel to resolve disputes

`UK looking for more trade ties with India'

`US reiterates commitment on business in Bengal'

`Bird flu could hit BPO, IT sector in India'

Glimmer of hope

More Japanese investments sought in infrastructure