There is a good news for the construction equipment industry as the sector is all set to grow higher in this year due to slashed GST rates on them. It is expected that the industry may sell over one million units globally this year, as mentioned by the significant player in the industry, JCB.
This hike in sales is the result of GST council slashing rates on construction equipment from 28 percent to 18 percent making the construction industry highly profitable from this announcement.
Talking in the Indian context, India currently contributes 39 percent in 2017 to the global sales of JCB. The equipment of constructions was on record sales of 9,00,000 units globally which are improved at 20 percent over a year. JCB chairman mentioned that “The information we are getting from various markets, China, Brazil, Europe and the US shows that the construction equipment sector will see another record year.”
While the Chief Executive Officer of JCB Group, mentioned some of the highlighting points of India, “India is an extremely important market for JCB, playing a role in developing roads and highways, urban rejuvenation, irrigation and Railways. The growth witnessed in India would not have been possible but for the five manufacturing facilities, facilitating export to over 90 countries.”
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He also mentioned the importance of Jaipur plant as the company exports to 51 countries from this particular plant. Also, it expected that the industry will be growing at an exponential rate due to the growing economy at the rate of 6 to 7 percent.
