The mining and construction equipment industry is likely to grow by 15-20% in the calendar year 2021, said ICRA. The first quarter of 2021 is estimated to have reported a strong equipment demand growth of 45-50%, ICRA said in a statement. “Following a 10-12% contraction in CY2020, dragged down primarily by the 39 % decline in H1 CY2020, the mining and construction equipment (MCE) industry is poised to grow by 15-20 % in CY2021 (5-10% in FY2022),” it further added.
Support to ICRA’s equipment demand estimates originates from the GoI (Government of India) continuing its Build India’ momentum to counter the economic slowdown and the ample liquidity in the ecosystem. Tailwinds from any pick up in state capex, compared to the pullback in FY2021, and strong construction activity picking up in other sectors like ports, metros, and airports, could aid demand.