Focus on the Indian Construction Sector – CECE at bauma CONEXPO INDIA
The fourth edition of bauma CONEXPO INDIA took place in Delhi in December 2018. Being one of the main events for the international construction machinery industry and our exhibition partner, CECE Secretary General Riccardo Viaggi attended the fair and represented European manufacturers with a speech during the Opening Ceremony.
Reminding the great importance of the Indian market for CECE members, he recalled that European companies provide 24% of construction machinery imports to the Indian market, making Europe the second largest supplier, very close to China (28%). He also mentioned the very positive outlook highlighted in a recent CECE Barometer, indicating 15% increase in exports volumes to India in 2018.
Indeed, India is seen by CECE member companies as a great opportunity in terms of increased sales, also thanks to the continued investment in infrastructure at state and federal levels. According to data presented during bauma CONEXPO INDIA by EAC, national infrastructure spending is expected to increase in 2019 to € 80 billion and projected to reach 250 billions in 2022 thank to a massive development of highway projects. An interesting element of the study presented by EAC is the positive attitude by the Indian government towards Foreign Direct Investments, with a total inflow of € 21 billion in 2018 in the infrastructure sector. Last but not least, urbanisation of the Indian subcontinent is also pushing investments into housing, which climbed at 4.3 billions in 2018 and with the possibility of 100% FDI.
Regarding construction equipment, the market stands at roughly 90,000 units sold in 2018, for a value of € 5.9 billion, but thanks to the abovementioned investment potentials, it is estimated to reach 120,000 units by 2022.
The fair was also the occasion for a second bilateral meeting between CECE and iCEMA, the Indian Construction Equipment Manufacturers’ Association. Riccardo Viaggi met the presidency team and the Secretary General of iCEMA and has the chance to propose further ways of closer collaboration between the two organisations in the area of regulatory convergence, data exchange and market openness.