According to the Indian Construction Equipment Manufacturers' Association, there was a recovery in the sales of construction equipment, which had dropped 60% in the fiscal first quarter, in the July-September period, an update from Trade Promotion Council of India noted. This recovery was fuelled by increased government spending on infrastructure projects, especially road construction, which led to a surge in demand for compactors and hydraulic excavators last quarter, in spite of labour shortages at construction sites. Other drivers of these sales is good monsoons for two consecutive years and government's focus on development of infrastructure in rural areas under the Pradhan Mantri Gram Sadak Yojana and the Pradhan Mantri Awas Yojana. Both these factors helped in bolstering the sales of construction equipment which is a key indicator of economic activity in rural markets.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
