Construction is the second largest economic activity after agriculture

In India, the investment in construction accounts for nearly 11 per cent of India’s Gross Domestic Product (GDP) and nearly 50 per cent of its Gross Fixed Capital Formation (GFCF). It accounts for nearly 65 per cent of the total investment in infrastructure and is expected to be the biggest beneficiary of the surge in infrastructure investment over the next five years. The investment in this segment over the financial year 2007 to 2012 is estimated at US$ 500 billion.

India's construction equipment sector is growing at a scorching pace of over 30 per cent annually--driven by huge investments by both the Government and the private sector in infrastructure development.
With sustained growth in infrastructure, the order book position of the 10 large construction companies in India has gone up by over 50 per cent year-on-year for the quarter ending June '06

With such bullish prospects in infrastructure, affiliated industries such as cement are on a high. Cement consumption, for the first time, is set to exceed the 150-million tonne mark. Reflecting the demand for the commodity, capacity utilisation rose to over 100 per cent-to touch 102 per cent in January 2007-with despatches touching 14.10 million tonnes as against the production of 14 million tonnes.

As opportunities in the sector continue to come to the fore, foreign direct investment has been moving northwards. The real estate and construction sectors received FDI of US$ 289.1 million in the first half of the current fiscal, with most inflows coming through the popular Mauritius route.
The massive investment in the construction industry will be driven by the growing requirements of sectors such as transportation, power, urban infrastructure housing and irrigation to ensure that the industry grows at the projected level

Construction Workers:

India’s construction work force is vast but largely untrained. The questionable quality of much work testifies to the fact that only some 15% of India’s estimated 30 million construction workers has been through structured training, according to the Mumbai-based Construction Industry.
The sector's contribution to the country's GDP would also increase to four percent in the coming years.

Investment:

The massive investment in construction industry will be driven by growing requirements of sectors such as transportation, power, urban infrastructure, housing and irrigation to ensure that the industry grows at the projected level. Mega Golden Quadrilateral and other highway projects, opening up of infrastructure to private players, allowing 100% FDI in real estate would be the other factors that will thrown up fresh opportunities for construction companies to boost the growth pattern of the industry. Majority of investment will come from public sector  with private sector contribution rising to it substantially.

Construction sector will require an investment of Rs.14,000 billion in the next 5-6 years during 11th plan and even thereafter.  The development of physical infrastructure through massive investments will require delivery potential of construction industry to rise by 30%.  Investment of this extent will be targeted if the industry will raise its delivery potential.
The investment in construction accounts for nearly 65 percent of the total investment in infrastructure and is expected to be the biggest beneficiary of flow in infrastructure investment in coming 5-6 years.