India Construction Industry Analysis

India construction industry is the foudation of its rapid industrialization and urbanization. Construction accounted for 40% -50% of India’s total project budget, such as highway construction, new roads, new railways, energy, and so on.In India, the annual construction output reach 50 billion US dollars that accounts for 6% of India’s GDP. The total investment in construction accounts for 11% of India’s GDP, close to 50% of GFCF.By 2010, the capital injection will reach $ 124.65 billion, which accounted for 65% of the total infrastructure investment. And higher rate of return will appear in the next 5 years.

India’s Tenth Five-Year Plan emphasis on the construction industry. To maintain the economic growth rate of 8%,the entire investment will reach 900 billion US dollars, of which 40% will be invested in the construction industry.

Construction is growing rapidly in India, in which construction imports annual growth reached 7-8%. The development of commercial and residential projects as well as urban and rural housing industry development projects promote the construction material import prosperity.

The entering of foreign real estate developers also stimulated imports. The interior decoration annual growth rate reached 15%, among which major shopping malls and hotels are mostly occupied, mainly in ceramics, surface decoration materials and kitchen.

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