Engineering and Construction

In India, construction is the second largest economic activity after agriculture. Investment in construction accounts for nearly 11 per cent of India’s Gross Domestic Product (GDP) and nearly 50 per cent of its Gross Fixed Capital Formation (GFCF).

Fund injection in this booming sector, currently worth $70 billion, would soar up to US$ 120 billion by FY2010. Construction accounts for nearly 65 per cent of India’s total investment in infrastructure and is expected to be the biggest beneficiary of the surge in infrastructure investment over the next five years.

The sector’s contribution to the country’s GDP would also increase to four per cent in the coming years. A massive investment is planned for the construction industry driven by the growing requirements of sectors such as transportation, power, urban infrastructure, housing and irrigation.

Other factors impacting this boom are projects such as the golden quadrilateral and other highway construction projects, the entrance of private players in various infrastructure projects, and allowing 100 per cent foreign investment in the retail sector.

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