The construction and mining equipment to play a pivotal role, propelled by the comprehensive measures outlined in the budget.
Arvind Garg
Senior Vice-President & Head, L&T Construction & Mining Machinery
India, currently the third-largest market globally for construction equipment (CE) and projected to surpass the United States to become the second-largest by 2027, stands at the cusp of a transformative phase, especially in the construction and mining equipment segments. The India Budget 2024 drives this shift with substantial allocations and initiatives aimed at fuelling infrastructure development and modernisation across key sectors, including construction and mining. The budget earmarks a significant increase in capital expenditure to 3.4% of GDP, signifying the Government’s strong commitment to bolstering the country’s infrastructure. This hike in capital expenditure is expected to spur widespread infrastructural projects, directly impacting the demand for construction and mining equipment. Particularly noteworthy is the budget’s focus on major economic corridor programs under PM Gati Shakti, which aim to enhance logistics efficiency and reduce costs, necessitating extensive construction and mining activities. Similarly, the PM Awas Yojana (Gramin) targets rural housing and infrastructure development, expanding the demand for construction equipment in rural markets. Urban infrastructure development receives a boost with allocations aimed at improving public transportation and water supply systems, further broadening the scope for the construction equipment industry. These initiatives collectively create a vibrant ecosystem conducive to the growth of the construction and mining equipment sector, providing ample opportunities for companies within this space to expand and flourish.
On the mining front, the budget’s emphasis on coal gasification and the establishment of a coal gasification and liquefaction capacity of 100 MT by 2030 highlights a shift towards cleaner coal technologies. This initiative aims to reduce imports and opens new avenues for the mining equipment segment, particularly for advanced machinery and technology-driven solutions tailored to coal gasification processes.
Additionally, a significant allocation for technology innovation and R&D, especially in green technologies and the e-vehicle ecosystem, suggests a forward-looking approach to mining equipment technology, aiming for efficiency, sustainability, and alignment with evolving industry demands.
In essence, the India Budget 2024 presents a multifaceted strategy towards infrastructure development, energy security, sustainability, and technological innovation. With strategic initiatives and financial outlays focusing on coal gasification, renewable energy, and technological advancement, the budget caters to these sectors’ immediate needs and sets a foundation for long-term growth.
As India strides towards its energy and sustainability goals, the construction and mining equipment industry is poised to play a pivotal role, propelled by the comprehensive measures outlined in the budget.
