With increasing urbanisation, the construction sector has witnessed tremendous growth potential in India. The government is committed to attracting huge investments in infrastructure projects, from various sources including fiscal resources, private sector and multilateral financing institutions. According to an estimate, the infra structure segment contributes around 55 per cent of construction revenues, while industrial construction contributes another 35 per cent, with the remaining coming from household and small commercial developments. Some of the leading construction companies in India are Jaiprakash Associates, Simplex Infrastructure, Punj Loyd, IVRCL and Gammon India.
The sector contributed around 8 per cent to India'snational income as measured by Gross Domestic Product (GDP) in 2011-12 and around 33 million people depended on the sector directly and indirectly for their livelihood. The growth of the construction industry declined to 5.3 per cent in 2011-12 from 8 per cent in the previous year, mainly because of the slowdown in the real estate sector and delay in the execution of infrastructure projects owing to statutory clearances. However, historically the construction sector grows at a compounded annual growth rate of around 9 per cent and it has the potential to revert to this growth rate, through policy support from the government.
In order to avoid delays in project execution, the central government announced a 'project clearance board' and a monitoring mechanism to speed up infrastructure projects. Other policy initiatives like the draft land acquisition bill, may reduce some of the hindrances to infrastructure projects and thereby support growth in the construction sector. The government aims to award 42 port projects, 9,500 km of road projects, three new greenfield airport projects, among others, in 2012-13.For more details:Fastest Growing Construction Companies