India’s earthmoving and construction equipment market is likely to grow six times to nearly $23 billion by 2020 according to JCB India Ltd., believed to be the country’s largest construction equipment manufacturer. JCB India managing director and CEO Vipin Sondhi and chairman of the International Construction Equipment and Construction Technology trade fair told media at the event’s opening that the industry had registered a compounded annual growth rate of 18 percent during 2006-2010 and the size was estimated at $3.3 billion in 2010.
However, Sondhi cautioned that higher interest rates and commodity prices such as oil and steel could dampen growth. He said that the government could counter the difficulties with an enabling environment to clear important national infrastructure by addressing issues of land acquisition, dispute resolution and the awarding of contracts.
Sondhi said a “rational tax” such as the Goods and Service Tax would enable efficient movement of equipment to areas where they were needed for projects.