India has become one of the key potential markets for construction equipment. Developing the construction sector would act as a key catalyst for the growth of the construction equipment market in India. Rapid urbanization, growing population, increasing government spending in infrastructure projects, the inflow of foreign direct investment are the major drivers boosting the demand for construction equipment in the country.

Government is a major demand driver, also plays a facilitator’s role through policy and regulations. It is the largest end customer accounting for nearly two thirds of the demand for Construction machinery & equipments and hence has a very significant impact on the industry. Also, its role in setting policy and regulation has a further impact on the industry. Be it GST or ‘Construction, Earthmoving, Material Handling, Mining (CEMM) Act’ or the RERA Act for the Real Estate sector or the sand mining policy or the ‘concrete site mix usage, land acquisition guidelines’, the Construction machinery & equipments industry looks to the Government to act as an enabler. Its policy for facilitating export growth helps the Construction machinery & equipments manufacturers reach out to existing and new markets. It monitors imports allowing for domestic manufacturing activity to flourish.