Construction services in India

What is the contribution of Construction Services to Our Economy?

In the recent years, there has been a sustainable growth in construction services in India and infrastructure build up. The industry has witnessed robust growth. The growth was driven by activities in housing, roads, oil and gas, airport, irrigation, railway network and port building. There has also been significant growth in real estate services. For a long time, the industry saw slow paced growth. But the dynamics have changed now. In the last decade, the construction industry has recorded a phenomenal growth which saw a corresponding rise in its share in the GDP of the country.  

The total investment in this sector increased from 5.7% in 2007 to 12% in 2012. By the end of 2017, the total investment is likely to increase to US$ 1 trillion.

The emerging trend of growing private and public partnership has also accelerated the growth. The development in the construction sector is not only seen in urban areas but rural and backward lagging areas too.

The growth in the construction services in India will give a rise to both direct and indirect jobs in the country and will create large employment opportunities, close to agriculture. Over 250 ancillary industries will be benefitted by vibrant growth of the construction industry. Some of the industries include cement, steel, building material, timber and brick. Due to this growth, a large number of contractors and builders have also emerged.

The demand of the construction industry exceeds the supply. The infrastructural development activities of a nation can make or break it. India is ready for a prosperous future that is backed by segments such as housing, transport and urban development.

Though the growth is happening at a very fast pace, there are many challenges which the construction industry may have to encounter. The high working capital needs in construction services in India can make it tough for small-scale companies with low finances to make an entry in the construction sector.

The growth in the number of builders and contractors has cut down the profit margin in great volumes. Only major segments such as housing, road construction and urban development have seen high demand. Segments such as seaport and airport development have witnessed low construction activities.Therefore, looking at the current construction industry, it looks like it is doing extremely well and has a long way to go. It definitely holds a big promise for a bright future.

 

Source : articlesbase.com