Government-led initiatives have been key drivers for construction
The economy is growing at about 7 percent annually and, despite short-term hits from Goods & Service Tax (GST) and Real Estate Regulatory Agency (RERA). The economy is showing strong signs of recovery and, it is expected to grow even faster over the next two years.
Lower crude oil prices, greater ease in doing business and a broader goods and services tax net will help to accelerate growth while checking inflation and the fiscal deficit.
Government-led initiatives have been key drivers for construction, attracting investment in urbanisation, high-tech manufacturing and the health sector. India’s ambition as the knowledge economy of Asia is driving investment in research and development.
The ‘Make in India’ initiative is encouraging investors to establish manufacturing plants in India, fuelling construction activities related to the automobile, defence, food processing, pharmaceutical and health sectors. The health sector is set to grow 20 percent by 2020 to support demand from rural areas.
|Cost escalation 2017–18:||1.0%|
|Cost escalation 2018–19:||2.0%|
|Location factor (USD):||23.2|
The government will boost spending on more airports, roads, ports and infrastructure. The central government has decided to invest USD109bn over the next five years in 83,677km of new roads and highways.
This content is part of the International construction market survey 2018