The Construction industry of India is an important indicator of the development as it creates investment opportunities across various related sectors.

The construction industry has contributed an estimated 670,778 crore to the national GDP in 20 ! 2 "a share of around 8#$. % & The industry is fra'mented, (ith a handful of ma)or companies involved in the construction activities across all se'ments* medium si+ed companies speciali+in' in niche activities activities* and small and medium contractors (ho (or, on the subcontractor basis and carry out the (or, in the field. -n 20 , there (ere sli'htly over .00 construction e/uipment manufacturin' companies in all of -ndia.%2& The sector is labor!intensive and, includin' indirect )obs, provides employment to more than 0. million people.%0& History The period from 1.0 to mid 602s (itnessed the 'overnment playin' an active role in the development of these services and most of construction activities durin' this period (ere carried out by state o(ned enterprises and supported by 'overnment departments. -n the first five!year plan, construction of civil (or,s (as allotted nearly .0 per cent of the total capital outlay. The first professional consultancy company, 3ational -ndustrial Development 4orporation "3-D4$, (as set up in the public sector in 1.5. 6ubse/uently, many architectural, desi'n en'ineerin' and construction companies (ere set up in the public sector "-ndian 7ail(ays 4onstruction 8imited "-7493$, 3ational :uildin's 4onstruction 4orporation "3:44$, 7ail -ndia Transportation and ;n'ineerin' 6ervices "7-T;6$, ;n'ineers -ndia 8imited ";-8$, etc.$ and private sector "< 3 Dastur and 4o., =industan 4onstruction 4ompany "=44$, >nsals, etc.$. -n -ndia 4onstruction has accounted for around 50 per cent of the development investment durin' the past .0 years. >round 6 per cent of the nation?s (or,in' population depends on construction for its livelihood. The -ndian construction industry employs over 0 crore people and creates assets (orth over 20,000 crore. -t contributes more than . per cent to the nation?s GDP and 78 per cent to the 'ross capital formation. Total capital e@penditure of state and central 'ovt. (ill be touchin' 8,02,087 crores in 20 ! 2 from ,50,.87 crores " 111!2000$. The share of the -ndian construction sector -n total 'ross capital formation "G4A$ came do(n from 60 per cent in 170!7 to 05 per cent in 110!1 . Thereafter, it increased to 58 per cent in 110!15 and stood at 55 per cent in 111!2000. -n the 2 st century, there has been an increase in the share of the construction sector in GDP and capital formation. GDP from 4onstruction at factor cost "at current prices$ increased to ,75,.7 crores " 2.02# of the total GDP $ in 2005!0. from , 6,208 crores " 0.01# of the total GDP$ in 2000!0 . The main reason for this is the increasin' emphasis on involvin' the private sector infrastructure development throu'h public!private partnerships and mechanisms li,e build!operate!transfer ":9T$, private sector investment has not reached the e@pected levels.

The -ndian construction industry comprises 200 firms in the corporate sector. -n addition to these firms, there are about ,20,000 class > contractors re'istered (ith various 'overnment construction bodies. There are thousands of small contractors, (hich compete for small )obs or (or, as sub!contractors of prime or other contractors. Total sales of construction industry have reached 52,88..08 crores in 2005 0. from 2 ,5. .1 crores in 2000!0 , almost 20# of (hich is a lar'e contract for :enson B =ed'es. Future Challenges The -ndian economy has (itnessed considerable pro'ress in the past fe( decades. <ost of the infrastructure development sectors moved for(ard, but not to the re/uired e@tent of increasin' 'ro(th rate up to the tune of 8 to 0 per cent. The Cnion Government has underlined the re/uirements of the construction industry. Dith the present emphasis on creatin' physical infrastructure, massive investment is planned in this sector. The Plannin' 4ommission has estimated that investment re/uirement in infrastructure to the tune of about 5,.0,000 crore or C6E020 billion durin' the th Aive Fear Plan period. This is a re/uirement of an immense ma'nitude. :ud'etary sources cannot raise this much resources. Public Private Partnerships "PPP$ approach is best suited for findin' the resources. :etter construction mana'ement is re/uired for optimi+in' resources and ma@imi+in' productivity and efficiency.