Perspective Analysis on the Future Market Demand of Indian Mechanical Products

It is reported that from 2004, India's demand for construction machinery will increase substantially, and in the next five years, the growth rate will be even stronger, which is the best time for China's construction machinery industry to develop the Indian market. At present, India mostly purchases products from the United States and Japan. China's construction machinery has certain advantages in cost performance. If we strengthen after-sales service and spare parts supply, we can further open up the Indian market. On the other hand, China's construction machinery industry can keep abreast of India's key infrastructure projects, grasp information and enter the Indian market with a definite aim. In recent years, the sales volume of construction machinery and equipment in India is between $1.5 billion and $2 billion, with an annual growth rate of 20% to 30%. At present, the utilization rate of commercial concrete in India is less than 1%, and the use rate will increase by 30% in the next five years, so the market potential of concrete conveying equipment is great. 80% of the concrete conveying equipment market is concentrated in the western and southern regions, with fierce competition, mainly low-end products (about 70%), but the demand for high-end products has increased. The Indian government has made infrastructure one of the priorities of economic development, and the National Highway "Dream Project" alone will cost $12 billion. In the next five to eight years, in addition to the construction of national highways, the annual investment in state-level roads will be US $1.1 billion. The market of road construction equipment is broad, and the demand for cranes, elevators, material handling equipment and heavy-duty transport tools will increase to a certain extent. At present, the crane market capacity is about 100 million US dollars, and the material handling equipment market capacity is about 300 million US dollars. On March 5, the Indian Cabinet approved a $7.5 billion plan to build 10,000 kilometers of highways in mountainous and underdeveloped areas of northern India. It is planned to be carried out in two phases, spanning seven northern provinces, with a highway mileage of 10396 kilometers. The plan also includes widening highways in 16 provinces, with 40% of the total investment coming from the government and the rest from private enterprises, the road minister said. In the next five years, India will need more than $200 billion for infrastructure construction, covering power, communications, ports, highways, railways, oil and other infrastructure areas. It is understood that India now has more than 2 million kilometers of highway network, and the national highway only accounts for about 2%. The Golden Quadrilateral Highway and Railway Network connecting New Delhi, Calcutta, Chennai and Mumbai, which is being implemented in India, has received preferential loans from the World Bank, the Asian Development Bank and other international organizations. In the next few years, India will invest $30 billion to build 12 highways, $3.2 billion to rebuild railways and $2 billion to build ports.

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