Construction sector in India expects 10.7% growth in FY22

The construction sector is expected to increase at 10.7% in FY22 in a rebound from a decrease of 8.6% last year, assisted by the base effect and a planned 9.2% development in the economy, as per the Ministry of Statistics and Programme Implementation. The ministry has evaluated India's GDP to increase 9.2% this fiscal amid surging concerns over the Omicron virus infection. The development in the gross domestic product (GDP) of 9.2% in April 2021 to March 2022 fiscal (FY 2021-22) provided by the National Statistical Office (NSO) in its first advance estimate compares with the 9.5% development forecast by the Reserve Bank of India (RBI) last month. The construction sector is likely to clock 10.7% in FY22 due to the government’s boosted focus on infrastructure projects and smart recovery of demand likely for residential and commercial segments. Other allied sectors like warehousing, logistics, and data centres are likely to fuel demand going forward, Samantak Das, Chief Economist and Executive Director - Research & REIS, JLL India, told the media. The estimates additionally said that the real estate, financial, and professional services segment is likely to witness a 4% overall development in FY22 versus the 1.5% dip. It is likely to be driven by investments in the construction and real estate sectors. The advance estimated GDP development rate of 9.2% issued by the statistic ministry is on the optimistic side regarding the improving situation of the pandemic. Though the estimate is slightly lower than what was planned by the Reserve Bank of India, it is still much better as compared to the dip of 7.3% registered during FY21, Anuj Puri, chairman, Anarock Group told the media. Image Source