Construction sector expects to register 6% growth
India’s construction sector is expected register a growth rate of 6.2 per cent by end of this financial year. Though, its performance has been disappointing compared to last fiscal’s 8 per cent, the sector is expected to see some improvement in the second half– a view that is reinforced by the strong rise (13 and 17 per cent) in cement output in November and December 2011.
Economic Advisory Council, who released the review of the economy 2011-12, expects the construction sector to register 6.5 per cent growth rate in the next fiscal. “As far as the role of government is concerned, it can express itself most powerfully in the infrastructure area – in power, roads, railways, ocean ports and airports, in rural and urban infrastructure,” said the council, adding that the inadequacy of infrastructure availability continues to act as a constraint for the expansion of economic activity across the country.
The council expects that the targets set for 2011/12 in power and roads may be achieved. “Government must set ambitious targets for 2012/13 for both capacity creation in key infrastructure areas and operational performance, especially in the coal sector, such that a fillip is provided to the improvement of economic activity in 2012/13, which is also the first year of the Twelfth Plan,” it added.
According to the review, mining and quarrying sector likely to report negative growth for 2011/12 on account of weak coal output growth, restrictions imposed on iron ore production, decline in natural gas production and negative growth in crude oil output.
However, the electricity sector has performed well and it is expected to grow at 8.3 per cent during 2011/12.