1

Size and Growth

Market Overview

Provisional Estimates of GVA for Construction at Basic Prices (at 2011-12 prices) (Rs billion)

Trend in Overall Annual Growth

Source: Ministry of Statistics & Programme Implementation

• Construction sector is one of the major contributors to the economic growth of the country. It contributes nearly xx% to the GDP. Theindustry is also labor-intensive and is the second largest employer, after agriculture.

• After a steep pickup in growth rate of gross value addition at 2011-12 prices in 2013-14, the sector started showcasing a sustained, thoughflattish growth, till 2016-17 (as official estimates by Department of Industrial Policy and Promotion).

• The sector received a major blow due to the outbreak of Covid-19 pandemic resulting in stoppage of construction activities for a couple ofmonths.

• Though the sector showed some growth during 2019-20, as compared to 2018-19, its share in total GVA of all economic activities hasremained almost the same since the last three years (xx-xx%).

Provisional Estimates of GVA for Construction at Basic Prices (at Current Prices) (Rs billion)

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

9,200.00

9,600.00

10,000.00

10,400.00

2017-18 (2nd RE) 2018-19 (1st RE) 2019-20 (PE)

%Rs

bill

ion

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

11,000.00

12,000.00

13,000.00

14,000.00

2017-18 (2nd RE) 2018-19 (1st RE) 2019-20 (PE)

%

Rs

bill

ion

2

Market Overview

Size and Growth

Growth in Material Market

Cement

• Cement production witnessed a fall ofxx% during 2020-21, largely due to Covid-induced lockdown and the subsequentdemand contraction in constructionsector.

• Overall, cement production has remainedconsistent from 2015-16 till 2020-21 withan intermediate peak during 2018-19.

Cement Production Trends, 2015-16 to 2020-21 (mt)

-20.00

-15.00

-10.00

-5.00

-

5.00

10.00

15.00

050

100150200250300350400

20

15

-16

20

16

-17

20

17

-18

20

18

-19

20

19

-20

20

20

-21

%

mt

Steel

• Production of finished steel stood at xx mtduring 2020-21, registering a decline of 8%as compared to 2019-20, primarily due toCovid-induced lockdown and subsequentdemand contraction in construction sector.

• Rising Covid cases, labour exodus and thediversion of liquid oxygen to hospitals for Covidpatients have impacted steel production andconsumption during April 2021.

Finished Steel Production and Consumption Trends, 2016-17 to 2020-21 (mt)

Source: Office of the Economic Advisor

-

20.0

40.0

60.0

80.0

100.0

120.0

2016-17 2017-18 2018-19 2019-20 2020-21

mt

Source: JPC, Ministry of Steel

3

Market Overview

Size and Growth

Growth in Material Market

Bitumen

• Nearly xx % of the bitumen produced in thecountry is utilised in the construction ofroads and the remaining xx % in the aviationand waterproofing segments.

• Bitumen production declined by xx% in2020-21 over 2019-20. Production fell asstate-controlled refiners upgraded units toprepare for the implementation of the EuroVI gasoline standards.

Production and Consumption of Bitumen, 2015-16 to 2020-21 ('000 tonnes)

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21'0

00

to

nn

es

Source: Petroleum Planning and Analysis Cell

Others

• Construction aggregates consist of coarseparticulate material, which includes sand, gravel,crushed stone and other recycled concrete.

• The demand is expected to increase by xx millioncubic metres per annum year. With this, the demandfor aggregates will also increase proportionately.

• Further, demand from key segments like real estate,roads and railways will continue to increase on theback of upcoming projects.

• Geosynthetics are engineering materials, which are designed to improve themechanical and physical properties of soil.

• Roads is the major user of geosynthetics, primarily geogrids. It is used in roadworks for creating slopes/slope rehabilitation, widening pavements, erosioncontrol, filtration and drainage.

• Notably, around xx - xx % of the geogrids market is for the roads sector, and therest is used in coastal erosion, railway, airports and tunnels.

• According to industry experts, The global geosynthetics market size was valued at $ xxbillion in 2019 and is expected to grow at a CAGR of xx % from 2020 to 2027.

Source: Compiled by India Infrastructure Research from various sources

4

Market Overview

Size and Growth

Growth in Equipment Market

According to industry reports, constructionequipment market in India is estimated ataround $ xx billion in CY2020. This is basedon a xx - xx % contraction in CY2020,dragged down primarily by the 39% declinein H1 CY2020 owing to the pandemicinduced slowdown.

Demand for the all-purposebackhoes recovered muchfaster than demand for otherequipment like excavators.

Supporting factors like strongproject awards in the road sector, astrong rural demand (foragriculture and housing) andongoing National InfrastructurePipeline initiative aided therecovery.

Relaxed FDI regulations in the construction sector by removing two major conditions related to the minimum built-up area and capital requirement. Moreover, the policy will allow projects under construction to have access to FDI. Such increase in foreign investments will create demand for construction equipment.

Growing real estate sector – The growing Indian real estate market with increasing trend towards mechanisation will drive the demand for automated construction equipment.

Increased mining activities – Staggering growth in the production of coal, iron ore, and other resources has led to the mechanization of mining activities. This will lead to an increase in the demand for mining equipment.

Accelerated public-private partnership projects in India – Mega road projects like golden quadrilateral, xx smart citieshave resulted in an increased requirement of road construction equipment and earth-moving construction equipment.

Source: ICRA

5

New Construction Practices and Techniques

Market Overview

The construction industry is the least digitalised and this leads to time lags. At present, a very ad hoc process is followed; instead

proper planning should be done to ensure coordination in the

industry as well as timely project completion.

The sector has seen increased investment and adoption of new

methods. Nearly $xx billion worth of investments have been made in the

industry in the past five years itself in all three segments of project

execution – design, construction and project management.

In the design segment, many new technologies have been adopted

such as building information modelling (BIM), which helps in

planning resources and early clash detection.

The use of pre-cast/pre-fabricated components saves time, enhances productivity, prevents delays and checks wastage of material. These

components are being used extensively in metro projects.

The project management segment has witnessed an upsurge in digital

interventions in the form of internet of things and project

monitoring tools.

Most construction companies in India are at an early stage of digital

maturity and are prioritising digitalisation to ensure the cost

effectiveness and timely completion of projects.

The outbreak of Covid-19 has provided the much-needed impetus

to modular construction and digitalisation of the sector.

Due to labour shortage and disruptions in the supply chain,

construction companies were forced to take up modular construction, thereby unleashing its potential.

The monitoring and evaluation ofongoing projects and the launch ofcompleted projects were madepossible with the help of digitalinterventions.

Source: India Infrastructure Research

6

Impact of Covid-19 on Project Delivery

Pace of Construction

© India Infrastructure Research | May 2020 www.indiainfrastructure.com

S&P BSE India Infrastructure Index, July 2020 - June 2021

0

50

100

150

200

250

300

Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21

Ind

ex

- 500.00

1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00 4,500.00 5,000.00

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2018-19 2019-20 2020-21

Rs

bill

ion

Source: SP Global, NSO - MoSPI

Quarter wise Construction GVA at Basic Prices for 2020-21 (at current prices) • Construction GVA dipped to Rs xx billion

during Q1-2020-21 due to stalledconstruction projects owing to lockdown.

• Prior to the second covid wave, theconstruction sector has started witnessingstrong recovery and pace of execution hascrossed the pre-Covid levels as reflected inthe construction GVA during second, thirdand fourth quarters of 2020-21.

• Construction GVA increased to Rs xx billionin Q4 2020-21, highest in the quarters oflast three years.

• First and second wave of the Covid-19pandemic impacted the Indian Infrastructuresector in short to medium term.

• Infrastructure projects facedimplementation delays due to shortages oflabour, raw materials, equipment, higherinput costs, financial crunch, etc.

• India Infrastructure Index witnessed astrong recovery during November 2020-March 2021, after which, it followed asteady path till June 2021.

7

Assessment of Project Pipeline

Project Pipeline Analysis

Medium-term Outlook

Moderately Affected

Short-term Outlook

Worst Affected

Long-term Outlook

Least Affected

xx projects Rs xx billion xx projects Rs xx billion xx projects Rs xx billion

With the initial months of 2021-22 inlockdown due to the second wave ofCovid-19 pandemic and thesubsequent months like to face a no.of challenges [shortage of labour,raw materials, equipment; liquidityissues; etc.(more like the first waveof Covid)], the pipeline in short-runwill experience maximum delays.

Though the economy has notbeen hit as badly as the firstwave, the log-jam created in theshort-term is expected to affectthe medium-term pipeline aswell.

Construction activities areexpected to return to normal inthe long-term. Howbeit, thetargets which have been missedin the short-term and medium-term are expected to impact thelong-term targets as well.

Source: India Infrastructure Research

Overall Pipeline Analysis

8

Post Covid-Outlook

Future Outlook and Market Opportunities (2021-22 and Beyond)

The government has reiterated its focus on infrastructure development time and again. The UnionBudget 2021-22 has been hailed as growth oriented, with a focus on trying to revitalise theinfrastructure sector. It has allocated Rs xx trillion for infrastructure development for 2021-22, which isa xx per cent increase over the previous year’s budget estimate. Sector-wise, railways and roads accountfor Rs xx trillion, two major sub-heads for non-defence sectors.

In order to augment the country’s infrastructure, the National Infrastructure Pipeline (NIP) hasbeen expanded to include xx projects. The government is committed to achieving the NIP targetsover the coming years, and has proposed steps to meet the funding requirements.

With a robust lineup of projects across various infrastructure sectors, the outlook for theconstruction industry holds significant promise. According to the projects tracked by IndiaInfrastructure Research across various sectors, there exists construction opportunity to the tuneof more than Rs xx trillion.

Of this, maximum opportunity lies in the railway, irrigation and road sectors. Around xx% of thetotal construction investment is expected to arise from these sectors together.

While the demand side of construction activities is replete with a strong pipeline of projects, theactual progress on ground will crucially hinge on factors such as effective and timely execution ofprojects, better financing arrangements, credit metrics of the construction player, as well as theviability of the project.

Government’s increased focus on infrastructure

development bode well for the construction sector

Scope of NIP expanded to xxprojects, across various infrastructure sectors

Robust pipeline of projects

Railways, irrigation and roads offer significant opportunities

On-ground progress remains dependent on a plethora of

factors

9

Post Covid-Outlook

Future Outlook and Market Opportunities (2021-22 and Beyond)

However, while there are a number of factors that bode well for this growth, much will dependon how risks are mitigated. Correct policies and their timely implementation will hold the key toa higher growth trajectory.

Much progress depends on how

risks are mitigated

Further, while the outbreak of Covid-19 pandemic has had a bearing on the construction activities, thegovernment is optimistic that the Rs xx trillion capex for 2021-22 is unlikely to get derailed by the secondwave of the pandemic.

Second Covid wave unlikely to derail 2021-22

capex

According to the credit rating agency, ICR, pick-up in the construction activities is expectedmostly in the third quarter, with the second quarter capex being focused more on non-construction-based capex.

Construction activities to pick-up in the third

quarter

Source: India Infrastructure Research

10

Current Stance of Investors and Lenders

Short-term Medium- to long-term

Investors

Lenders

Wait and watch mode

Low short-term visibility

Averse to illiquid assets

Acquisition of assets on hold due to dentedvaluations

Bullish on the country’s infrastructure growth

Economic stimulus package a welcome step

A lot depends on execution of reforms andpace of economic recovery

Closure of deals with improvement inasset/business valuations

Cautious stance towards infrastructure

Greater focus on lending to MSMEs, NBFCsand agriculture

Lockdown and slowdown to impactcollections and resolutions

Risk of slippage looms

NBFC capitalisation to infuse liquidity in thesystem

Pace of economic recovery is a key factor

Banks will continue to remain thepredominant financiers for infrastructureprojects with support from products likeInvITs.

Financing Needs and Challenges

11

Sector Snapshot

© India Infrastructure Research | June 2020 www.indiainfrastructure.com

Split of Indian Road Network

Source: MoRTH and NHAI

• India continues to have the second largest road network in the world.

• The network has grown from xx million km in 2015-16 to around xx million km in 2020-21.

• This comprises National Highways, Expressways, State Highways, Major District Roads, Other District Roads and Village Roads

• Of this, national highways account for xx% of the network and carry about xx% of the traffic on Indian roads.

• Only about xx% of the national highways are four-laned. The condition of the state network is even worse. Only xx% of the statehighways are four-laned and only xx% two-laned.

National highways

xx%State

highwaysxx%

Rural roadsxx%

Urban roadsxx%

Project roadsxx%

Other PWD roadsxx%

Growth of Total Road Network in India

0

1

2

3

4

5

6

7

2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

mill

ion

km

Roads

12

64,000

64,500

65,000

65,500

66,000

66,500

67,000

67,500

68,000

68,500

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

rkm

86,000

88,000

90,000

92,000

94,000

96,000

98,000

1,00,000

2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

kmSector Snapshot

Railways

Total route kmRunning track km

CAGR: xx %

CAGR: 0. xx%

India has the fourth largestrailway network in the worldafter US, China and Russia. As of2019-20, the country’s rail tracknetwork stood at xx rkm

In terms of running track km,the network increased from xxkm in 2017-18 to xx km in 2019-20.

However, IR’s routes are heavilycongested with xx% of the routecarrying xx% of the traffic.

13

• In the past four financial years (2016-17 to 2019-20), airpassenger traffic grew at a CAGR of xx%. The market hasgrown significantly in the past four years from xx millionin 2016-17 to xx million in 2019-20.

• The growth is being primarily led by the domesticpassenger segment, which grew from xx million in 2016-17 to xx million in 2019-20.

• There was a significant growth in internationalpassenger segment as well, which grew from xx millionin 2016-17 to xx million in 2019-20. However, thisgrowth was less in comparison to domestic due tobilateral restrictions and inability for domestic airlines togrow significantly in international markets.

Growth in Passenger Traffic

Sector Snapshot

Growth in Passenger Traffic during 2016-17 to 2020-21

Source: Airports Authority of India

0

50

100

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350

400

0

50

100

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250

300

350

400

2016-17 2017-18 2018-19 2019-20 2020-21

mill

ion

mill

ion

• In the financial year 2020-21, a steep decline in overall passenger traffic, including traffic of both the domestic and international passengers hasbeen recorded owing to the suspended passenger air travel due to the COVID-19 pandemic since the second half of March 2020.

• From xx million in 2019-20 to xx million in 2020-21, the total air passenger traffic declined by xx %. The domestic traffic fell to xx million in2020-21, as against xx million in 2019-20, marking a major drop of xx %. The decline was more pronounced in international traffic, whichfell by xx % during 2020-21 over 2019-20.

• With domestic passenger flights resumed in May 2020 after a two-month hiatus and the number of flights departing increased over thetime, domestic passenger traffic continued to improve gradually on a monthly basis. However, the recovery in 2020-21 has been extremelyslow due to low demand for discretionary travel and limited international flight services.

Impact of the first Covid-19 wave in 2020-21

Airports

1414

Current Scenario

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Ah

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and

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Ben

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Ch

en

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Del

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Hyd

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ad

Jaip

ur

Ko

chi

Ko

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a

Luck

no

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Mu

mb

ai m

etro

Mu

mb

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il

Nag

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No

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rN

oid

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Gu

rugr

am r

apid

met

ro

km

• The current operational/completed network of urban railsystems in India is xx km. Delhi Metro has the highestoperational network of xx km, followed by HyderabadMetro (xx km) and Chennai Metro (xx km).

• Metro network in India recorded the highest growth in aspan of three years during 2018-20, with metro stretchesspanning about xx km being completed.

• The most recent stretches to be completed include Chennaimetro rail project phase-I extension and Kolkata North-South metro expansion project.

0

100

200

300

400

500

600

700

800

Till 2006 2007-11 2012-14 2015-17 2018-21*

km

City-wise Operational Network

Trends in Network Growth

* As of May 2021Source: India Infrastructure Research

Source: India Infrastructure Research

Urban Transport

15

Sector Snapshot

15

Source: India Infrastructure Research

Ports

➢ xx km➢ Nine states

(Gujarat, Maharashtra, Karnataka, Tamil Nadu, Goa, Andhra Pradesh, Odisha, Kerala, West Bengal)

➢ Two union territories

(Puducherry, Andaman and Nicobar islands)

➢ xx major ports

➢ Over xx non-major ports

➢ Total traffic: xx mt

o Major ports: xx mt (xx % decline from 2019-20)

o Non-major ports: xx mt (xx % decline from 2019-20)

➢ Total capacity: xx mt

o Major ports: xx mt (xx % growth over 2018-19)

o Non-major ports: xx mt (xx % growth over 2018-19)

➢ Average turnaround time on port account: xx days

➢ Average output per ship per berth day: xx tonnes

➢ Under Sagarmala programme: xx projects, Rs xx trillion

➢ Beyond Sagarmala programme: xx projects, Rs xx trillion

Indian coastline Maritime states No. of ports

Total traffic at Indian ports (2020-21) Total capacity at Indian ports (as on March 31, 2020)

Key efficiency parameters at major ports (2020-21)Project pipeline (upcoming and ongoing construction

projects)

16

Sector Snapshot- Generation

Power

© India Infrastructure Research | March 2020 www.indiainfrastructure.com

Source: CEA

0

50

100

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350

400

450

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

GW

Coal and lignite

xx%

Gasxx%

Dieselxx%

Nuclearxx%

Hydroxx%

RESxx%

Year-wise Growth in Installed Generation Capacity

Break-up of Installed Capacity (As of April 2021)• As of April 2021, the country’s total generation capacity stood at

over xx GW.

• Coal accounts for a major share in the installed capacity at 55%followed by renewables (~ xx%) and hydro (xx%). Gas, nuclear anddiesel account for the rest

• Between 2012-13 and 2020-21, the installed generation capacityhas grown at a CAGR of nearly xx%.

• Meanwhile, the total generation in the country stood at xx BUs in2020-21 (including thermal, hydro, nuclear and imports)

17

Sector Snapshot-Water

Water and Waste

*per capita water consumption assumed at xx lpcd; Note: The upcoming capacity of respective sectors includes planned, proposed, announced, approved, under bidding, awarded and under construction projects.; Source: India Infrastructure Research

• Total population: xx billion

• Urban population: xx million

• % Share: ~ xx %

• Water consumption by keyindustries (2019-20): xxbcm

• Water supply sector➢ Upcoming capacity: xx mld➢ Pipeline network: xx km➢ Investment: Rs xx trillion

• Upcoming desalination capacity

➢ Municipal: xx mld

➢ Industrial: xx mld

• Industrial sector➢ Upcoming water treatment

capacity across ETPs: xx mld➢ Upcoming ETP capacity: xx

mld

• Total water supply: xx mld* (2019)

• Total sewage generation: xxmld (2020 estimates)

• Sewage treatmentcapacity: xx mld (2020estimates)

• Wastewater sector➢ Upcoming capacity: xx mld➢ Pipeline network: xx km➢ Investment: Rs xx billion

18

Sector Snapshot- Waste

Water and Waste

Source: Swachh Bharat Mission Urban

ULBsregistered

• xx ULBs registered

• xx ULBs not registered

Door-to-door collection

(SWM)

• xx wards with xx% door-to-door collection

Individual Household

Latrines (IHHL)

• Sanctioned: xx• Constructed: xx

SWMtreatment

• No. of states: xx• No. of districts: xx• No. of ULBs: xx

SWMdisposal

• No. of states : xx• No. of districts : xx• No. of ULBs: xx

Open defecation free (ward)

• No. of states : xx• No. of districts : xx• No. of ULBs: xx

MSW Value Chain

1. Generation 2. Collection 3. Transportation4. Recovery/Treatment

5. Disposal

Generation of solid waste at

households/commercial; sorting waste

Scheduling of compactors or trucks for waste

collection; providing bins for recycling

Transportation of waste to sites for transfers, recovery or disposal

Secondary sorting of waste (plastic, glass, paper,

aluminum, etc.); treatment or recovery of other waste stream

Landfilling or incineration; environmental management

19

Sector Snapshot

19

Source: India Infrastructure Research

Irrigation

15.5%

16.0%

16.5%

17.0%

17.5%

18.0%

18.5%

19.0%

19.5%

20.0%

20.5%

2016-17 2017-18 2018-19 2019-20 2020-21

• Agriculture is the primary source of livelihood for more than xx% of India’s population and plays a significant role in the overall socio-economic fabric of the country.

• The “Agriculture and Allied sectors ” currently account for xx% of the overall gross value added (GVA), with a rising trend from xx% in2018-19.

• The share of agriculture in GVA increased to xx% in 2020-21 from xx% in 2019-20. The last time the contribution of the agriculture sectorin GDP was at xx% was in 2003-04.

• The increasing share of agriculture and allied sectors in GVA opens up a plethora of opportunities for the construction industry as well dueto rise in demand for irrigation infrastructure.

Share of Agriculture and Allied Sectors in Total GVA (2016-17 to 2020-21)

20

Sector Snapshot

Tunnels

• Of the total no. of tunnels analysed, xx% have beencompleted, xx% are under construction and the remainingxx% have been recently awarded.

India Infrastructure Research has analysed xx tunnels spanning a length of over xx km. These tunnels are spread across three stages of development – awarded, under construction and completed.

Market Size of Tunnels in India

In Terms of Number of Tunnels in India In Terms of Length of Tunnels in India (km)

Note: Most of the metro projects considered have details on tunnel length, but not on the number of tunnels.Source: India Infrastructure Research

-

200

400

600

800

1,000

1,200

1,400

Completed Ongoing Awarded

No

. of

tun

ne

ls

• Of the analysed tunnel length, xx% has been completed,construction work is going on xx% tunnel length and theremaining xx% has been recently awarded.

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00

Completed Ongoing Awarded

km

21

Housing

Sector Snapshot

Split of Vacant Houses in India (%)

© India Infrastructure Research | February 2020www.indiainfrastructure.com

Percentage of households by ownership status in India (Census 2011)

Note: Total number of households is xx million. Source: Census 2011

Ownedxx%

Rentedxx%

Otherxx%

0

5

10

15

Total Rural Urban

Share of vacant houses in 2001 (% of all houses)

Share of vacant houses in 2011 (% of all houses)

Household Ownership Status in India

According to the Census 2011, there are about xx million households in India, of which, xx% are rural and xx% are urban. In both, rural andurban segments, majority of the households live in owned houses. The share of households living in owned houses is xx% in rural areasand xx% in urban areas.

Rooms per House

More than xx% of the households have one room or less in their houses. As per the Census 2011, the average household size was xx,meaning that about five people have to share a room to meet their housing needs.

Locked up Capacity

A key issue in the Indian housing sector remains that of locked up capacity with a huge fraction of houses i.e. xx million lying vacant in thecountry. This is ~xx% of total number of rented houses. Two key issues responsible for high vacancy rate are pro tenant laws and weakcontract enforcement frameworks.

22

Market Size and Growth Drivers

Equipment

© India Infrastructure Research | June 2020 www.indiainfrastructure.com

• According to industry reports, the construction equipment market in India is estimated at around $xx billion in CY 2020. This is based ona xx-xx% contraction, dragged down primarily by the xx% decline in the first half of the year, owing to the pandemic induced slowdown.

• In terms of type of equipment, the demand for the all-purpose and lower cost backhoe loaders recovered much faster than demand forother expensive equipment like excavators. This was driven by strong project awards in the road sector, rural housing demand andgrowing urban real estate sector.

• Further, National Infrastructure Pipeline (NIP) initiative worth Rs xx trillion encompassing xx projects across sectors like roads, airports,railways, irrigation to be implemented during 2019-20 to 2024-25 is the major demand booster for construction equipments.

Growing urban real estate sector -The growing Indian real estate and housing market with increasing trend towards mechanization will drive the demand for automated construction equipment

Road projects - Uptick in award of road projects like Bharatmala Pariyojana by NHAI along with high execution rates have supported volumes of construction equipment like excavators and backhoe loaders

Rural demand for housing and roads Increased project activity under PMAY and PMGSY rural infrastructure segments has aided the demand growth for equipment, specifically backhoe loaders

Other infrastructure sectorsPick-up in activity under other infrastructure sectors like airports, railways, irrigation and regular funds flow from the central government, particularly, for initiative like National Infrastructure Pipeline (NIP) continues to support equipment volumes Source: ICRA