Mining and construction equipment industry to grow by 15-20%: ICRA

12 May 2021 CW Team

The agency said that the first quarter of this year will record equipment demand growth by 45-50%. Further, the agency added 10-12% contraction in FY20 and declined to 39% in the first half of 2020. The mining and construction equipment (MCE) industry is expected to increase by 15-20% in FY21. The economy can have a negative impact due to the Covid-19 crises as observed in April 2021 when demand was comparatively subdued.

However, the overall equipment demand will be increased in 2021, partly due to the low base of 2020. A comparative subdued second quarter in this Covid-19 crisis and the emission-related pre-buy pick-up and post-buy drop in the third and fourth quarter of FY21.

While the Covid 2.0 throws negative surprises in the manpower-intensive construction sector it expects a better-prepared ecosystem, said ICRA.

Further, they added in support to ICRA's equipment demand estimates arising from the Indian government advancing its Build India momentum to counter the economic strike and the adequate liquidity in the ecosystem. Tailwinds from any pick up in state capital expenditure, related to the pullback in FY21, and strong production activity picking up in other sectors.

Vice-President and Co-Group Head of ICRA Pavethra Ponniah said that demand can be hit by the Covid second wave limiting mobility and equipment utilisation for an extended period.

Dealer checkpoints predicted a more subdued 0-5% volume increase in FY22 against ICRA's expectations of a 5-10% volume increase.

ICRA said that it anticipates demand growth by 15-20% in 2021 and expects to sustain in 2022 and 2023, before diminishing in 2024 pre-and post-the general elections during April-May 2024.

Image Source

Also read: Covid-19 second wave may not impact overall construction activities: ICRA

Also Read: Coal India’s fuel allocation via spot e-auction surges 43% in FY21

Investment Information and Credit Rating Agency of India Ltd (ICRA) told the media that the mining and construction equipment industry is expected to grow by 15-20% in this fiscal year although the stressed economy due to the Covid-19 crisis can have sudden negative effects. The agency said that the first quarter of this year will record equipment demand growth by 45-50%. Further, the agency added 10-12% contraction in FY20 and declined to 39% in the first half of 2020. The mining and construction equipment (MCE) industry is expected to increase by 15-20% in FY21. The economy can have a negative impact due to the Covid-19 crises as observed in April 2021 when demand was comparatively subdued. However, the overall equipment demand will be increased in 2021, partly due to the low base of 2020. A comparative subdued second quarter in this Covid-19 crisis and the emission-related pre-buy pick-up and post-buy drop in the third and fourth quarter of FY21. While the Covid 2.0 throws negative surprises in the manpower-intensive construction sector it expects a better-prepared ecosystem, said ICRA. Further, they added in support to ICRA's equipment demand estimates arising from the Indian government advancing its Build India momentum to counter the economic strike and the adequate liquidity in the ecosystem. Tailwinds from any pick up in state capital expenditure, related to the pullback in FY21, and strong production activity picking up in other sectors. Vice-President and Co-Group Head of ICRA Pavethra Ponniah said that demand can be hit by the Covid second wave limiting mobility and equipment utilisation for an extended period. Dealer checkpoints predicted a more subdued 0-5% volume increase in FY22 against ICRA's expectations of a 5-10% volume increase. ICRA said that it anticipates demand growth by 15-20% in 2021 and expects to sustain in 2022 and 2023, before diminishing in 2024 pre-and post-the general elections during April-May 2024. Image Source Also read: Covid-19 second wave may not impact overall construction activities: ICRA Also Read: Coal India’s fuel allocation via spot e-auction surges 43% in FY21

Building Material

11 Dec 2025

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Building Material

11 Dec 2025

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

Building Material

11 Dec 2025

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..