Welcome to EXCON 2019
The Market Place For Construction Equipment Industry
Infrastructure sector is a key driver for the Indian economy. The sector is highly responsible for propelling India’s overall development and enjoys intense focus from Government for initiating policies that would ensure time-bound creation of world class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads and urban infrastructure development.
The Indian economy is currently around Rs 190 lakh crore (GDP at current market prices, 2018-19) which comes out to be $2.8 trillion, converting it in dollar terms taking average exchange rate of the financial year.
Depiction of the Indian economy, projecting the country's gross domestic product (GDP) would grow at 7% in 2019-20, against a five-year low of 6.8 per cent the preceding year. This low in GDP was with political stability facilitating a pick-up in demand and investments. India would need to grow at 8 per cent annually to become a $5-trillion economy by FY25, the survey projected.
INDIA’S SUSTAINABLE DEVELOPMENT REQUIRES INVESTMENT WORTH OF RS 50 TRILLION (US $ 777.73 BILLION)
IN INFRASTRUCTURE BY 2022
- India has a requirement of investment worth Rs 50 trillion (US$ 777.73 billion) in infrastructure by 2022 to have sustainable development in the country.
- In the Union Budget 2019-20, the Government of India has given a massive push to the infrastructure sector by allocating Rs 4.56 lakh crore (US$ 63.20 billion) for the sector.
- FDI received in Construction Development sector (townships, housing, built up infrastructure and construction development projects) from April 2000 to December 2018 stood at US$ 24.91 billion and in Construction (Infrastructure) activities stood at US$ 14.01 billion.
- With initiatives like ‘Housing for All’ and ‘Smart Cities Mission’ the Government of
India is working on reducing bottlenecks and impeding growth in the infrastructure sector.Rs 2.05 lakh crore (US$ 31.81 billion) will be invested in the smart cities mission. All 100 cities have been selected as of June 2018.
- In Union Budget 2019-20, Rs 83,015.97 crore (US$ 11.51 billion) was allocated for National Highways Authority of India (NHAI) while Rs 19,000 crore (US$ 2.63 billion) was allocated to Pradhan Mantri Gram Sadak Yojana (PMGSY) for development of roads in rural and backward areas of the country.
- The Indian Railways received allocation under Union Budget 2019- 20 at Rs 66.77 billion (US$ 9.25 billion). Out of this allocation, Rs 64.587 billion (US$ 8.95 billion) is capital expenditure.
- Indian Railways will require investment of Rs 35.3 trillion (US$ 545.26 billion) by 2032 for capacity addition and modernisation. The capital expenditure in the sector is expected to be increased 92 per cent annually.
- For 2019-20, the total capital expenditure of Railways is expected to be Rs 1.59 trillion (US$ 22.04 billion).
- In 2019-20 Union Budget, government announced Rs 83.02 billion (US$ 11.51 billion)for road transport and highway.
- The Government of India will construct 65,000 km of highways by 2022.
- Government announced plans to invest US$ 6.98 billion in Northeast States.
- The Airports Authority of India aims to bring around 250 airports under operation across the country by 2020.
- The AAI plans to spend over Rs 21,000 crore (US$ 3.2 billion) between 2018-22 to build new terminal and expand capacity of existing ones.
- Metro rail projects worth over Rs 500 billion ($7.7 billion) are underway in India and this pile will probably grow.