The development of the heavy engineering industry is one of the top priorities of a nation and is also a major indicator of its economic growth. Two of the main key components in India’s infrastructure growth plan are construction and heavy equipment (C&HE) industry. As India is going through a rapid surge of infrastructure development, the C&HE sector is currently looking at many opportunities. Several global players have entered the Indian market domain to exploit this opportunity in the past few years.

Amid this increasing competition, domestic companies have also set forth for joint ventures and collaborations with the global players to get into the rising hullabaloo over the market competitiveness.

These opportunities, however, comes with its own set of challenges.

For example:

The gap between the Indian market and developed market:

One of the main problems within the sector is the gap in terms of technological maturity between the Indian market and the developed markets. The industry must strive to become end-to-end solution providers and must focus on applying mechanical and embedded electronics in a calculative manner, rather than just try to improve the powertrains and system engineering.  

Unavailability of industry experts:

A large talent pool is what is necessary for this industry and that’s exactly what we are lacking in. India produces a large number of engineers every year but there is a considerable gap between their ability and industry usability. In order to overcome this, there must be learning and development programs as well as innovation labs, R&D labs, tests, and validation centers. But for this to materialize, the government, as well as R&D institutes, must take the initiative. In order to bridge the technical gap that exists, it is necessary that the industry must take calculative and selective steps to climb the technology ladder.

Funding:

The problems associated with finance is another drawback for this industry. In the current scenario, the interest rates for financing the equipment is quite high in the construction industry and needs to be reduced significantly. Amendments in GST along with strong constitutional changes will also help in a big way. This will be a major support for equipment manufacturers as it will help in reducing taxes on the sales of equipment between different states.

Government’s inefficiency:

Slow progress made by our government on most of the infrastructure-related projects is creating an obstacle for its growth. The government had made several announcements before on the expected increase in the business capacity in India. Many companies had increased their capacities believing this. Unfortunately, these aren’t being utilized properly now, henceforth has adversely affected the company’s financial positions. Further, the government must keep a close watch on the used machinery that is being imported without any proper evaluation or monitoring.

AXISCADES provides perfect heavy engineering solutions with over three decades of exposure to various machines, design, and development in the industrial vertical. Here, they strive to deliver real value that caters to your energy needs. The major services offered are product design, design support, design validation, Engineering software development, and PLM customization as well as manufacturing support. They have the right mix of onshore/offshore-cost arbitrage along with proven project management methodology. AXISCADES has a global footprint of 14 locations and the ability to invest in new services and locations.

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