The construction industry is the second largest industry in India after agriculture. Accounting for about 11% of India as GDP, it makes significant contribution to the nation economy and provides employment to large number of people.
There are mainly three segments in the construction industry like real estate construction which includes residential and commercial construction; infrastructure building which includes roads, railways, power; and industrial construction that consists of oil and gas refineries, pipelines, textiles, etc.
According to Make in India’s website, USD 1 Trillion investments for infrastructure sector are projected during 2012-17 with about USD 650 Billion investments in urban infrastructure over next 20 years. Also, 100 Smart Cities and 500 AMRUT Cities will invite investment of 2 Trillion Rupees in the next five years and INR 62,009 Crore would be invested under Swachh Bharat Mission (SBM) in urban areas.
Construction sector in India will remain buoyant due to increased demand from real estate and infrastructure projects. This sector offers great investment opportunities as there’s a lot of scope in construction development in residential, retail, commercial and hospitality sectors.
One can invest in technologies and solutions for smart sustainable cities and integrated townships, green building solutions, sustainable and environmentally friendly building materials, training and skill development of construction sector workers, smart cities and a lot more.
The construction sector also gets a lot of support and aid from the government through the Make in India initiative. In the Union Budget 2014-15, the Government of India has announced a project to develop ‘One Hundred Smart Cities’ as satellite towns of larger cities by modernising the existing mid-sized cities in the country.
To encourage development of ‘Smart Cities’, which will also provide habitation for the neo-middle class, requirement of the built-up area and capital conditions for FDI is being reduced from 50,000 sq mts to 20,000 sq mts, from USD 10 Million to USD 5 Million respectively. Also, a National Industrial Corridor Authority, with its headquarters in Pune is being set up to coordinate the development of Industrial Corridors with emphasis on Smart Cities linked to transport connectivity to spur growth in manufacturing and urbanisation.
Therefore, with Make in India, India would establish new benchmarks in the construction sector which will further help with the growth in the average GDP and increase the rate of employment in our country.