Steps announced to attract FDIs will undoubtedly boost our manufacturing sector.

Williams R. J.
Managing Director, Hailstone Innovations

How do you look at the market for construction and mining equipment in India?

I would definitely say that the construction and mining equipment sector is booming in India. As per the report released by ICEMA, the Indian Construction Equipment (CE) industry maintained its ongoing growth momentum in the third quarter of the current fiscal year by clocking a 30% growth in sales volume over the third quarter sales inFY23.  The strong focus of the government on infrastructure development is doing great good for the industry. Enhanced budgetary allocations and rapid implementation of projects are other key factors driving the industry’s growth.

Which specific budget provisions do you believe will have a direct impact on the construction equipment manufacturing sector?

The interim budget has specific provisions for the Construction Equipment industry. The increased outlays for capital expenditure and promotion of green energy particularly caught my attention. Steps have been announced to attract more foreign investments and that is good news for the sector.

It has been announced that the government will launch a scheme to help deserving sections of the middle class “living in rented houses, or slums, or chawls and unauthorized colonies” to buy or build their own houses. This will benefit the construction equipment industry.

From a long-term perspective, how do you foresee the budget influencing the growth and development of the construction equipment industry in India?

The allocation for infrastructure has increased and this will help the industry and the economy grow. Steps announced to attract FDIs will undoubtedly boost our manufacturing sector. As the focus turns towards R & D, innovation will be nurtured and India will emerge as a global manufacturing hub.  The interim budget in itself is a one with a long-term vision.

Are there any specific policy measures or incentives mentioned in the budget that you believe will benefit the construction equipment manufacturing sector?

The policy to ensure timely and adequate finances, relevant technologies and appropriate training for the Micro, Small and Medium Enterprises (MSME) to grow and also compete globally is the one I believe will benefit the construction equipment manufacturing sector as supply chain challenges will be addressed and we will truly become self-reliant.  The government’s idea to facilitate high and more resource-efficient economic growth is appreciable. 

What specific measures or changes would you like to see from the government to further support and boost the construction equipment manufacturing sector?

I would like the government to bring in more transparency in the approval processes and also, guide in meeting carbon neutrality. The government can also create knowledge sharing platforms for the industry to brainstorm and bring about path-breaking solutions.

What are the bottlenecks in the industry and how do you overcome those challenges?

Supply chain disruptions, technology adoption, increasing labour costs, stringent norms are among the challenges faced by the industry. Backed with our expertise and experience of over 3 decades, we are able to continue on our winning stride, despite such bottlenecks.