In India, the construction industry forms the country’s backbone. It is the most active and promising sector, which is expected to become the third largest global market in construction. After the agricultural industry, the construction industry is the biggest and one of the most significant industries in India. In terms of employment generation, it is the largest industry that is responsible for providing work to approximately 40 million people and generates more jobs every year, both directly and indirectly.
Different Segments of Construction Industry in India:
Broadly, the construction industry can be categorized into three main segments that are very similar to the real estate industry, namely the general sector that mainly includes construction for residential and commercial purposes; infrastructure and heavy engineering construction that includes railways, roads, airports, bridges, harbors, power, etc.; and the industrial unit that includes refineries, pipelines, plumbing, textiles and electrical work. Among all these segments, real estate construction (residential and commercial buildings) plays a crucial role in making the entire construction industry a flourishing one. Construction activities pertaining to different segments are very different. Residential housing alone is responsible for around 70% of construction activities, while the construction of infrastructure makes up 40-60% share. For the industrial unit, construction work range between 15-20%.
The main deterrent to the smooth functioning of construction activities is arbitration. In our country, investments worth thousands of crores are unavailable because of arbitration. Construction activities are hindered owing to disputes between political parties that take years to resolve. Since, the construction industry is crucial for the prosperity of the entire country, urgent, workable reforms are the need of the hour. Many disputes are pending in arbitration and also within government units; these need to be settled promptly and efficiently. So, to maintain high growth rate and foster economic development, the recovery of the construction sector is crucial.
A key driver is the rapid advancement of technology in this industry that boosts its potential and pace. Government initiatives, such as the Housing for All by 2022 act, are going to change the dynamics of the industry. Similarly, there’s the AMRUT scheme (Atal Mission for Rejuvenation and Urban Transformation)and the demand for affordable housing that will greatly increase construction activities across many towns and cities. Township housing and development of other vacant spaces in urban areas shall further boost the growth of this sector.
As the construction industry develops so will the demand for building materials, like TMT bars and other home building materials. Hence, the Indian Steel Industry is also booming. If you are planning to build your home, make sure you purchase only the best products from leading steel manufacturing companies in India.
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