Medium to long term outlook positive; challenges in the immediate to short term

06 Feb 2020 CW Team

After a record year in 2018, the industry and indeed the economy witnessed a downturn in 2019. “One of the biggest issues being faced by the construction industry was the availability of finance and liquidity,” says Wilfried Theissen, Managing Director, Putzmeister India. He adds, “We expected the budget to address these challenges,” and he shares more on Budget 2020 outcome...

“100 per cent tax expemptions for Soverign Wealth Funds investing in infrastructure projects and enhanced FPI limits should result in increased foreign capital infusion over the medium to long term. Increased foreign investment will also bring with it increased pressure to deliver projects professionally and on time. This should boost the shift to mechanised construction methods, it bodes well for the RMC segment and OEMs.

The extension announced on the partial credit guarantee scheme to cover floated to help HFCs and NBFCs tide over their liquidity crisis shows that the government does indeed recognise the ongoing stresses in this segment. Whether this helps the industry in the short term remains to be seen.

What the Budget has not done is help alleviate any of the industry’s challenges in the immediate to short term. The government has put the ball squarely in the industry’s court to find solutions that will keep business rolling.

The government’s continued emphasis and focus on improving infrastructure in the country is evident from the various plans announced. And, we at Putzmeister are fully prepared to help India meet these objectives.”

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