Massive investment in infrastructure is the main growth driver of the construction equipment industry that is attracting multinationals from all over the world to invest in India, delegates at an international conference here were told.
"India is a vast land of opportunity for the construction industry, with strong demand attracting global players," said VG Shakti Kumar, leader of an eight-member Indian delegation participating in the three-day Bauma Conexpo Africa 2015 that started on Tuesday.
Bauma is the biggest international trade fair in Africa for construction machinery, building material machines, mining machines and construction vehicles.
"Almost all global players in the construction equipment industry have a presence in India, either as joint ventures or with their own manufacturing or marketing companies," Kumar said as he highlighted the mutual benefits of this.
Thousands of visitors from all over the world are expected to visit the expo in search of opportunities in various countries, prompting the Indian delegation to invite construction industry players from South Africa to look at joint ventures or set up their own manufacturing in India.
"Such joint ventures with global majors have provided domestic companies access to advanced technology and a whole gamut of project management experience."
Fundamentals for the sector are set to remain strong on the back of increasing infrastructure investments. Kumar also urged local companies to set up manufacturing bases in India by taking advantage of the FDI incentives provided under the Make in India program, as he detailed the massive construction programs proposed in the road, rail, ports and freight sectors.
"The Indian construction equipment market has the potential to grow at 20-25 percent to reach 330,000-450,000 unit sales by 2020," Kumar said. Bauma is the biggest international trade fair in Africa for construction machinery, building material machines, mining machines and construction vehicles.
"There is also good opportunity for more construction equipment component industry players with high technology to set up shop in India, with countries such as Algeria in Africa showing a preference for importing Indian-manufactured equipment."
Kumar also invited the training sector to assist in closing the large skills gap that presently existed in India, especially to ensure operation and maintenance of equipment. He said there was a need for 100,000 trained operators and 300,000 mechanics by 2020.