Construction Industry Profile
PART- A
INDUSTRY PROFILE
PART-A
INDUSTRIAL PROFILE
|Indian Construction Industry is highly fragmented. There are mostly |[pic] |
|unorganized players in the industry which work on the subcontracting basis. As| |
|the construction activity being labour intensive, construction companies have | |
|been mainly focusing on mechanization over the past few years. Consequently, | |
|growth in quantum of laborers required has declined from 1.6% in FY 04 to 0.9%| |
|in FY 08. Projects in the construction industry are mostly working capital | |
|intensive. | |
The Indian construction industry forms an integral part of the economy and a conduit for a substantial part of its development investment, is poised for growth on account of industrialization, urbanization, economic development and people's rising expectations for improved quality of living. Construction constitutes 40% to 50% of India's capital expenditure on projects in various sectors such as highways, roads, railways, energy, airports, irrigation, etc and is the second largest industry in India after agriculture. It accounts for about 11% of India's GDP.
For the first five-year plan, construction of civil works was allotted nearly 50 % of the total capital outlay. In 1954 National Industrial Development Corporation (NIDC), was set up in the public sector which is the first professional consultancy company. Then later many architectural, design engineering and construction companies were set up in the public sector (Indian Railways
INDUSTRY PROFILE
PART-A
INDUSTRIAL PROFILE
|Indian Construction Industry is highly fragmented. There are mostly |[pic] |
|unorganized players in the industry which work on the subcontracting basis. As| |
|the construction activity being labour intensive, construction companies have | |
|been mainly focusing on mechanization over the past few years. Consequently, | |
|growth in quantum of laborers required has declined from 1.6% in FY 04 to 0.9%| |
|in FY 08. Projects in the construction industry are mostly working capital | |
|intensive. | |
The Indian construction industry forms an integral part of the economy and a conduit for a substantial part of its development investment, is poised for growth on account of industrialization, urbanization, economic development and people's rising expectations for improved quality of living. Construction constitutes 40% to 50% of India's capital expenditure on projects in various sectors such as highways, roads, railways, energy, airports, irrigation, etc and is the second largest industry in India after agriculture. It accounts for about 11% of India's GDP.
For the first five-year plan, construction of civil works was allotted nearly 50 % of the total capital outlay. In 1954 National Industrial Development Corporation (NIDC), was set up in the public sector which is the first professional consultancy company. Then later many architectural, design engineering and construction companies were set up in the public sector (Indian Railways