Medium to long term outlook positive; challenges in the immediate to short term
ECONOMY & POLICY

Medium to long term outlook positive; challenges in the immediate to short term

After a record year in 2018, the industry and indeed the economy witnessed a downturn in 2019. “One of the biggest issues being faced by the construction industry was the availability of finance and liquidity,” says Wilfried Theissen, Managing Director, Putzmeister India. He adds, “We expected the budget to address these challenges,” and he shares more on Budget 2020 outcome...

“100 per cent tax expemptions for Soverign Wealth Funds investing in infrastructure projects and enhanced FPI limits should result in increased foreign capital infusion over the medium to long term. Increased foreign investment will also bring with it increased pressure to deliver projects professionally and on time. This should boost the shift to mechanised construction methods, it bodes well for the RMC segment and OEMs.

The extension announced on the partial credit guarantee scheme to cover floated to help HFCs and NBFCs tide over their liquidity crisis shows that the government does indeed recognise the ongoing stresses in this segment. Whether this helps the industry in the short term remains to be seen.

What the Budget has not done is help alleviate any of the industry’s challenges in the immediate to short term. The government has put the ball squarely in the industry’s court to find solutions that will keep business rolling.

The government’s continued emphasis and focus on improving infrastructure in the country is evident from the various plans announced. And, we at Putzmeister are fully prepared to help India meet these objectives.”

After a record year in 2018, the industry and indeed the economy witnessed a downturn in 2019. “One of the biggest issues being faced by the construction industry was the availability of finance and liquidity,” says Wilfried Theissen, Managing Director, Putzmeister India. He adds, “We expected the budget to address these challenges,” and he shares more on Budget 2020 outcome... “100 per cent tax expemptions for Soverign Wealth Funds investing in infrastructure projects and enhanced FPI limits should result in increased foreign capital infusion over the medium to long term. Increased foreign investment will also bring with it increased pressure to deliver projects professionally and on time. This should boost the shift to mechanised construction methods, it bodes well for the RMC segment and OEMs. The extension announced on the partial credit guarantee scheme to cover floated to help HFCs and NBFCs tide over their liquidity crisis shows that the government does indeed recognise the ongoing stresses in this segment. Whether this helps the industry in the short term remains to be seen.What the Budget has not done is help alleviate any of the industry’s challenges in the immediate to short term. The government has put the ball squarely in the industry’s court to find solutions that will keep business rolling. The government’s continued emphasis and focus on improving infrastructure in the country is evident from the various plans announced. And, we at Putzmeister are fully prepared to help India meet these objectives.”

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?