All eyes will be on INFRASTRUCTURE once again… rightfully so… deadlines will be shrunk, and projects will be delivered on time as the D-day of General Elections approaches closer. In fact, rating agency ICRA has also echoed the same sentiment in its recent research anticipating a substantial ramp-up in road execution activity in FY2024 by 16-21% to 12,000-12,500 km, in the backdrop of a healthy pipeline of projects, increased capital outlay by the Cente and focus on project completions. The project pipeline remains strong at 55,000 km under various stages of execution.
In another update, there are 202 National Highway projects currently under construction by the Union Ministry of Road Transport and Highways (MoRTH), with an estimated cost of `79,789 crore. These national highway projects will be covering a total of 6270 kilometres across India.
When it comes to real estate market sentiments, India Ratings and Research (Ind-Ra) predicts Indian housing market to sustain its grow momentum with sales expected to increase by 9% compared to the previous year, whereas the commercial real estate is also not behind and has been garnering greater traction from the investors’ community.
All these updates reflect positive signs of sustenance for construction equipment companies in the country. While the last few months didn’t go as expected, the announcement of fresh projects only mean greater business prospects for equipment manufacturers and allied segments. It’s best to tread along the path cautiously and sustain the growth trajectory as the construction and real estate sector take the growth uptick. In doing so, companies will need to be cautious enough to not play their cards all at once, it’s best to keep some secret reveal for the ‘BEST TIME’, which is anticipated to arrive soon!