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10 Facts about The Construction Industry of India


The Indian Construction Industry had a value of more than 126 million USD according to a study conducted in 2013, which has increased even more the following years. As of 2010, this industry employed more than 44 million people, and the number is way bigger these days. As a result, this huge industry plays a very important role in shaping the economy of India. Moreover, the second highest number of Foreign Direct Investments (FDI) have been attracted by this sector since 2013.

Construction industry plays a big role in India’s economy; Image Source: moneycontrol.com

There are a number of components in the construction industry of India. Development of many kinds of establishments take place throughout every year. Residential and real estate construction, commercial, industrial constructions such as refineries and textile mills are the main components of this industry.

There are also constructions of infrastructure development which includes roads and railways. There are many interesting facts and things present in this enormous industry about its development and extension. In this article we will look into 10 facts about the construction industry of India. These 10 facts are-

1. Almost half of all construction activities in India are carried out in the infrastructure segment, in which residential and industrial constructions and commercial developments are included.

2. Launching urban development projects in which the development of about 500 cities all over the country are included is being focused on by the Indian government. A Public Private Partnership or PPP model will be used to develop the infrastructure of these cities. Foreign investment from countries including USA, France, Japan etc. have been attracted by the Smart Cities Project of the government.

3. The real estate sector of India witnessed an annual growth of 30% between the economic year 2005 and 2008. Due to the global recession, this growth slowed down in 2008, but it started to rise again after 2009. The real estate sector grew by 8% between 2009 and 2011, but it dropped to 6.5% in the 2012-13 fiscal year. The real estate market of India was valued at 78.5 billion USD in 2013. It is expected to become worth way more billions in the upcoming years.

4. By 2020, the revenue of the construction appliance industry is expected to reach 22.7 billion USD. In the 2012 fiscal year, the worth of the industry was 5.1 billion USD.

Commercial establishments are one of the most important components of the Indian construction industry; Image Source: nkginfra.com

5. The Indian Government is focusing on infrastructure investments to thrust the economic growth of the country. In the year 2006, a budgetary allocation of Rs. 2.21 lakh crores was announced by finance minister Arun Jaitley for infrastructure sector.

6. In 2020, the population of India is estimated to reach 1.4 billion and 1.6 billion by the year 2040 according to a research of the World Population Statistics. As a result, a huge demand for housing and other urban infrastructure will be created, which will provide further momentum to the market of residential construction.

This industry employs so many people and help them to earn their living; Image Source: indiaconstructionupdate.blogspot.com

7. The construction industry is not on its own, many other big industries depend on this industry such as the industries of steel, cement, brick and other important construction materials. There are almost 250 industries depending on the construction one. Among all these, cement production in India is really significant. India has been the second largest manufacturer of cement for long after China. The production of cement in India is expected to reach 550 million tons by the year 2025.

8. The ‘Housing for all by 2020’ project is considered as one of the key factors in easing the growth of the construction industry in India, along with the government’s Smart Cities Project. An increase in construction activities is expected in the upcoming years with more concentration on building affordable housing and other supportive schemes.

9. The extension of construction industry was driven by one of the most reforming decisions which was to open the doors to 100% FDI. The tax related complexities will be simplified with the introduction of Goods and Service Tax (GST), thereby easing growth opportunities.

10. The Indian Construction Industry witnessed a yearly Compound Annual Growth Rate (CAGR) of 13.52 %, which was mentioned in the report ‘Construction in India – Key Trends and Opportunities to 2018’ published by Trimetric. This growth is smoothed by the boom in different institutional and commercial construction projects and public and private investments in infrastructure development programmes.

There are so many other facts and information about the construction industry which can help one to understand the promising and glorious nature of this industry.

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