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Construction : Editorial | September 2015 | Source : Equipment India

Yuan Devaluation Spells Gloom

The recent devaluation of Chinese Yuan by 4 per cent has triggered a global crash of stock markets. Indian BSE index has dropped by over 16000 points and there is more to come. Some of the richest Asians have lost over US$3.6 billion in investments. Further, the US are expected to increase their interest rates which seriously impact the world economy even further. Financial analysts around the world are trying to figure out the full implications of these developments which spell an overall gloom in the global economy.

On the other hand, Anand Sundaresan, President, ICEMA, has approached the Government of India to regulate the import of used equipment as he expects the same to seriously impact the Indian manufacturers of mining and construction equipment have committed their resources to the ´Make in India´ movement. Unconfirmed reports indicate that plans are afloat to form a body to certify the operators and technicians dealing with such equipment to create a safe working environment for this industry.

In light of accelerated projects in the Northeast India and 100 new concrete road projects announced by the Ministry of Road Transport and Highways, the road compactors industry in India is expected to boom. However, in order to meet the stringent requirements of achieving compaction quality, coupled with speedy execution of the work, Intelligent Compaction is the new order of the day. All manufacturers of compaction equipment are offering intelligent compaction to meet this new requirement of road developers and contractors alike.

Similarly, India is expected to become the world´s third-largest manufacturing hub. The logistics industry is gearing up to meet the incoming frenetic developments in warehousing, palletisation, internal material movement in factories and ports. Evidently, forklifts of different capacities and power options are bound to play a significant role and all recognised suppliers are making their strong presence felt in this market by intruding their latest technology and products in India duly supported by aftermarket activities.

However, despite the big plans, foundation equipment like piling rigs are expected to register only a modest growth from their bottom-most performance in India over the past few years. It should be noted that a very large number of existing equipment, residing with only a few owners, has been idle for a long time. The upcoming projects are initially utilising the same instead of acquiring new machines.

Amid all these happenings and mixed reactions on the economy front, there are still great days ahead for India. The urban planning departments of municipalities are now working overtime to qualify for funding. The city challenge has kicked up a storm. Smart Cities have moved into round one as a list of 98 cities has been announced. Of these, 24 are capital cities, another 24 are business hubs, 18 cultural centres, five port cities and three are education and healthcare hubs.

Shankar Srivastava
Managing Editor

 
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