Bangalore, Nov 14 (UNI) Indian Earthmoving and Construction Equipment Industry (ECE), spurred by rapid economic development, is on a threshold of massive growth that will out beat the IT industry and cross US Dollar 13 billion by 2015, according to a McKinsey study for CII.
Releasing the report 'ECE Vision 2015: Scaling new heights in the Indian ECE Industry' at the CII Excon-2007, the fourth Indian Construction Equipment and Technology Trade Fair here, event Chairman and also MD and CEO of JCB India Vipin Sondhi said based on the survey the revenue volume had recorded 40 per cent growth year on year since 2004 and now reached US Dollar 2.3 billion.
The report estimated that the 'as usual' growth would create a market of US Dollar eight billion by 2015 and if a concerted push was given by the industry and Government alike, by promoting exports and provisioning of India specific products, it could generate an additional four billion dollar.
The study had discussed the five trends that would shape the evolution of the industry and highlight the imperatives to realise this opportunity. This included growth opportunities like investment of US Dollar 750 billion in country's infrastructure development, increased involvement of global equipment manufacturers in India and opportunities for exports.
However, low cost imports from countries like China could pose a challenge but at present it was quite low at five per cent of the total ECE consumption, the report said.
McKinsey India MD Adil Aainulbhai said the report was not a prediction instead it would highlight potential and challenges for the ECE industry.
''India can become top country in the World overtaking China in ECE manufacturing if it could sustain the present growth for the next decade-and-half. To achieve full potential players in the industry it needed to embark on strategic initiatives like introduction of India specific products, increase in mechanisation in the construction industry, improve cost positions and pioneer efforts to boost exports,'' the report said.
The study concluded by outlining imperatives for the Government, which had to complement the initiatives of industry players. Focus should be on availability of trained manpower as the current pace of the industry was likely to face a shortfall of three lakh trained operators by 2015.
The report suggested that an important factor to facilitate the fast progress of ECE industry was to remove tax anomaly. This would help in boosting exports and lower tax burdens that impede demand.