The construction industry in India has historically accounted for around 40% of development investment and provides employment for over 35 million people. In the past, the government played an active role in development through state-owned enterprises. Currently, major projects include airports, metros, solar parks, and expressways. The future is promising with a projected growth rate of 7-8% annually and over $1 trillion in infrastructure investments planned between 2012-2017 to develop areas like smart cities, affordable housing, and urban development.

1. Past, Present and Future of construction in India
Made by: Ravi Bhadani (14cl004)
Kandarp Patel (d15cl154)

3. Introduction:-
• The Construction industry of india is an important indicator of the development as it
creates investment opportunities across various related sectors.
• The industry is fragmented, with a handful of major companies involved in the
construction activities across all segments; medium-sized companies specializing in
small and medium contractors who work on the subcontractor basis and carry out the
work in the field. In 2011, there were slightly over 500 construction equipment
manufacturing companies in all of India.
• The sector is labour intensive and, including indirect jobs, provides employment to
more than 35 million people.

5. Past of construction in India:-
• The period from 1970 to mid 60’s witnessed the government playing an active role in the
development of these services and most of construction activities during this period were carried
out by State owned enterprices and supported by government departments. construction of civil
works was allotted nearly 50 per cent of the total capital outlay.
• The first professional consultancy company, National Industrial Development corporation (NIDC),
was set up in the public sector in 1954. Subsequently, many architectural, design engineering and
construction companies were set up in the public sector, National Buildings Construction
Corporation (NBCC) and Engineering Services (RITES), Engineers india limited (EIL), etc.) and private
sector (M N Dastur and Co., Hindustan Construction Company (HCC) etc.

6.  In India Construction has accounted for around 40 per cent of the development
investment during the past 50 years. Around 16 per cent of the nation's working
population depends on construction for its livelihood. The Indian construction industry
employs over 30 million people and creates assets worth over ₹ 200 billion.
 It contributes more than 5 per cent to the nation's GDP and 78 per cent to the
gross capital formation. Total capital expenditure of state and central govt. will be
touching ₹8,021 billion in 2011-12 from ₹ 1,436 billion (1999-2000).
 GDP from Construction at current prices increased to ₹ 1.745 billion (12.02% of the
total GDP ) in 2004-05 from ₹ 1,162.38 billion (10.39% of the total GDP) in 2000-01.

7. Present Construction sector in India
• the construction sector is reeling under a severe shortage of skilled
workforce, and in many areas of the country, shortage of construction sand,
raw materials, and political disturbances are also acting as growth
deterrents.
• 32% of population lives in urban areas
• The infrastructure sector in India witnessed 33 deals in FY 2016-17
involving US$ 3.49 billion, with the majority of deals led by the power,
roads and renewable sectors, as per investment bank Equirus Capital.
• The 534-km Rs1 trillion high-speed rail project that will operate trains with
average speeds of 200-250kmph will be a game-changer in terms of inter-
urban connectivity and establish India as a market for such technologies

8. Present Constructon sector in India
• Railway expenditure allocation has increased by 8 per cent to Rs 131,000 crore (US$ 19.58 billion) for laying
down 3,500 km of railway lines in 2017-18.
• Affordable housing has been given infrastructure status.
• Gujarat International Finance Tec-City (GIFT) is an under-construction central business district between
Ahmedabad and Gandhinagar that will be a major financial hub.
• Major On-going projects are:-
 World-Class, Eco-Friendly Airports. ...
 Magnificent Metro Projects. ...
 Neemuch Solar Power Plant, Madhya Pradesh. ...
 Yamuna Expressway. ...
 India's First Solar Park at Charanka Village in Gujarat. ...
 Amazing Airport Terminals. .

9. Future of Construction Market in India:-
With new government and recently announced Union Budget, the future of the building and construction
industry appears to be bright. However, the next 5-10 years as expected to be promising from FDI as well as
overall sector perspective.
Latest market research report (2014) by PWC highlights:
• The Construction industry in India expects a growth rate of 7-8% per annum over the next 10 years.
• The Construction sector is one of the largest contributors to economic activity, after the agriculture sector,
in India. Construction employs an estimated 35 million people and is a significant driver of FDI inflows.

10. • Indian cities contribute significantly to India’s GDP. As per a mid-term appraisal in 2012, the
urban share of the GDP was 62% – 63% in 2009-10. This was further projected to increase to
70% – 75% in 2030.
• In 2001, about 286 Million were living in urban areas across India. It had the second largest
urban population in the world. As per the Indian Census, 2011, the urban population had
increased to 377 Million, thereby registering a growth of around 32%. As per recent
estimates, nearly 590 Million people will live in Indian cities by 2030.

11. Why now is the best time to enter India?
Investment opportunities in India
 Construction development in residential, retail, commercial and hospitality sectors.
 Technologies and solutions for smart sustainable cities and integrated townships.
 Technologies for the promotion of low cost and affordable housing.
 Green building solutions.
 Sustainable and environmentally friendly building materials.
 Training and skill development of construction sector workers.
 Smart cities.
 Urban water supply, urban sewerage and sewage treatment.

12. Make in India For construction sector:-
 USD 1 Trillion investments for infrastructure sector projected during 2012-17
 USD 650 Billion investments in urban infrastructure estimated over next 20 years.
 100% Foreign Direct Investment (FDI) permitted through the automatic route for
townships, cities.
 Additional Facts: Growth rate for GDP in construction 8.1%
 100 Smart Cities and 500 AMRUT Cities will invite investment of 2 Trillion Rupees in
the next five years.
 INR 62,009 Crore. would be invested under Swachh Bharat Mission in urban areas.