Current Scenario of Construction Industry
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The Construction industry plays a very important role in the development of India’s economy. This sector creates both employment and investment opportunities on a very vast scale. This industry is segmented, with the involvement of different major players in construction activities across all the areas. Being a labor-intensive sector, it includes both the direct and indirect jobs of more than 49.5 million people.
The Indian construction market is expected to register a CAGR of 6% over the forecast period, 2019 – 2024. By 2025, the output of the construction industry of India is expected to emerge as the third-largest industry in the world. To be precise,34 Km of National Highways were constructed per day in the financial year 2020-21, which was 3 times higher, than the rate of construction of highways during the financial year 2014-15.
After recording a spectacular growth of over 12%, the outbreak of the Coronavirus (COVID-19) pandemic and subsequent lock down restrictions weighed on the industry's output in the year 2020. The construction sector was overcoming the labor shortage and supply chain disruptions of the raw material. The global pandemic affected 8.5 million jobs in this sector.
With the boosting of schemes like the “National Infrastructure Plan” and the “Affordable Rental Housing Complex (ARHC)” under the “Atmanirbhar Bharat Movement” by the Indian Government, the year of 2021, therefore, opens up many exciting investment opportunities in construction stocks. According to the Ministry of Statistics and Programme Implementation (MOSPI), the Indian construction industry grew by 6.2% Year-on-Year in the final quarter of 2020 (Q4) - up from Year-on-Year declines of 7.2% in Q3 and 49.4% in Q2 2020.
The future of the construction sector lies in digital tools that will enhance every aspect of the construction workflow. From BIM to automated prefabrication in off-site factories, and from Augmented Reality (AR) to robotics or drone-powered scanning technology, a variety of new technology-enabled tools will help construction companies improve their efficiency and work culture ,leading to higher productivity and enhanced quality for the end-users.
Even when the industry is growing at a fast pace, the issue of climate change continues to be a major point of reflection. With the increase in awareness, the big players of the market are adapting to work under the outlines of projects, to maintain a deemed environment-friendly surrounding right from the construction stage and even adapting the feature of smart or IOT-enabled lighting, water and gas connections to minimize wastage.
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