Construction industry to grow at 9% next fiscal

The Indian construction industry has some positive to take forward from the government’s economy review. The review forecast the industry to grow from its current 6.5% to 9% next year (2010-11). The construction industry had a dismal growth record as it fell to 5.9% last fiscal (2008-09) from its earlier 12.4% (2005-06), thanks to global economic slowdown and its effects on the industry.
Releasing the economy review for 2009-10 in New Delhi today, C Rangarajan, chairman, Economic Advisory Council to the Prime Minister, said they expected the India’s GDP to grow at 7.2% in the current fiscal and 8.2% in the next. The overall growth rate of industry sector which includes construction is expected to be 8.6% this fiscal from last year’s 3.9%. The service and non-agriculture sectors are expected to grow at 8.7% and 8.5% respectively this fiscal.
Surely, the government expects the Indian economy to see positive growth from now on and it might even hit 9% in 2011-12. Construction sector is to play a vital role in this growth story which government forecast will grow at 10% in 2011-12.