Construction sector’s share in gross value drops

Construction sector’s share in the country’s gross value added (GVA) has declined to 7.4 per cent in FY18, from 9.6 per cent in FY12, on drop in capital expenditure and subdued home sales, according to a report. While public sector capital expenditure activities had picked up during the course of past few years, private sector spends remained weak due to issues faced in land acquisition, approvals, deferral of capital expenditure plans and overall subdued business confidence, the joint report by industry body ASSOCHAM and credit rating agency ICRA said. However, the report said that construction activities are expected to improve going forward with the government increasing focus on infrastructure projects and taking steps to improve the regulatory environment and funding avenues. It advised engineering, procurement and construction contractors to enhance their capacity and invest in latest design, engineering and IT technologies to ensure efficient execution of these opportunities.