The demand for construction equipment grew by 24 per cent in 2017-18 as against 13 per cent in 2015-16 on account of increase in infrastructure expenditure, says a study.
The industry grew despite the hiccups of GST while demonetisation also had a negligible effect on the sector's growth, the joint-study by ASSOCHAM-Feedback Consulting said.
The government is the largest end-customer accounting for nearly two-thirds of the demand for construction equipment, it added.
The study noted that highway construction has been one of the key drivers for equipment growth.
"The Indian construction, mining equipment industry continues to be highly dependent on the demand for Backhoe loaders and Hydraulic Excavators," the report highlighted.