Construction operations play a key role in the development of a society. The construction industry securely and efficiently enables people to live more comfortably. From multistory buildings to sewers, highways, and construction machineries, such as dozers, cranes, and excavators, all help build a better future. Much like construction operations, mining operations are vital for the development and preservation of daily living and for providing resources such as metals, coal, limestone, rock salt, potash, gravel, and clay, etc., which are used to build residential communities and roads and to generate electricity.
The construction, machinery & mining industry is projected to grow at a fast pace owing to rapid industrialization, urbanization, rising infrastructure investments, increasing private sector involvement, mechanization of mining operations, increasing foreign investments, and growing mining and road construction activities.
The industry is also anticipated to grow due to the increasing demand for a wide range of machines to perform a variety of tasks during mining and construction activities, such as the preparation of the ground, dumping/laying, haulage of material, earthmoving, excavation, road construction, material handling, etc. Also, a wide variety of equipment is used in the mining sector, such as excavators, dump trucks, asphalt drum/wet mix plants, breakers, cranes, forklifts, motor graders, etc. All such equipment helps in achieving productivity, accuracy, and efficiency, and save time and labor costs during mining and construction activities. Further, digital adoption and emerging technologies such as building information modeling (BIM) and automation are projected to boost the construction, machinery & mining industry.
According to the Investment Information and Credit Rating Agency (ICRA), India will likely have moderate market growth for the construction, machinery & mining industry in 2020. In 2018, the demand for construction & mining equipment was a robust 24-27%, supported by road work throughout the country, barring seasonal lows. In 2019, the growth started tapering off to 4-6% in the medium term due to policy paralysis, liquidity crisis in non-banking financial companies, and the resulting impact on loan-to-value ratio and interest rates, leading to slow progress in projects. In 2019, road remained the growth engine for the construction, machinery & mining industry.
Increasing public sector spending on infrastructure, a strong cash surplus, and rising construction activities are to boost the industry growth in 2020. Anticipating this huge growth potential of the construction, machinery & mining industry in the country, many equipment manufacturers are coming up with upgraded and new equipment to cater to the increasing demand. For instance, Mahindra Construction Equipment, among others, is playing a definitive role in boosting the construction, machinery & mining industry by offering technically advanced machinery like Mahindra RoadMaster motor graders and EarthMaster backhoe loaders, in order to support the projected growth of the construction, machinery & mining industry in the country.
The construction, machinery & mining industry is expected to grow considerably in the coming years. The burgeoning real estate industry, rising population, higher demand for luxury projects, growing demand for affordable housing, a surge in steel and iron ore production, and higher demand for advanced machinery for construction and mining operations are giving a fillip to the growth of the construction, machinery & mining industry.