India needs a rental revolution to drive Sustainable Infrastructure Growth, says Jitender Aggarwal, CMD, AGGCON
Over the past decade, India’s infrastructure equipment rental industry has witnessed consistent and robust growth. This evolution has been fueled significantly by the visionary leadership of Prime Minister Narendra Modi and his government’s continued focus on infrastructure development. Projects like metro rail systems, expressways, bullet trains, smart cities, renewable energy ventures, oil refineries, and mining activities are creating an unprecedented demand for construction and infrastructure machinery — particularly advanced equipment integrated with modern technologies.
Today, the industry is at a crossroads where technology and sustainability must become defining pillars. The increasing reliance on digitalization, sensor-based controls, telematics, and predictive maintenance is not just enhancing operational efficiencies but also transforming how we manage equipment across project lifecycles. These innovations are reducing downtime, cutting operational costs, and improving safety, making them indispensable for modern infrastructure projects.
One of the key enablers in this transformation is the rental model. With the cost of state-of-the-art machines rising steadily, renting has become a preferred solution for construction companies, contractors and developers. Renting allows them to preserve capital for their core business, while also avoiding the long-term costs associated with owning, operating, and maintaining machinery. Moreover, rental services often come bundled with trained operators, reducing the burden on contractors to hire and train personnel.
Beyond the economic advantages, sustainability is emerging as a strong driver for the rental industry. As India strives toward its environmental and climate goals, the rental industry must align with global benchmarks such as those set by the Global Rental Alliance (GRA). It is time for our industry leaders to collaborate and formulate policies aimed at reducing carbon footprints across the value chain.
The European Rental Association (ERA) offers an excellent example of leadership in this space. Under the guidance of its former Secretary General, Michel Petitjean, ERA conducted a pioneering study to quantify the environmental benefits of the rental model. The findings were compelling — rental equipment usage can reduce carbon emissions by up to 30%, and in some cases, by over 50%. This is the kind of data-driven validation that India needs to embrace and promote.
In light of these facts, I firmly believe that the Indian government should consider incentivising construction companies and contractors to rent equipment instead of purchasing it outright. Such a move would not only support the growth of the rental industry but also contribute meaningfully to India’s sustainability goals.
India is on the cusp of a major infrastructure revolution. As we build modern infrastructure and connect every corner of the nation, we must also build a smarter, greener, and more efficient way of working. Equipment rental is not just a business model — it’s a sustainable solution for the future of infrastructure.
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The writer of this article is Mr Jitender Aggarwal, Chairman & Managing Director of AGGCON Equipments International Limited
