Indian Construction Industry

Topics: Construction, Infrastructure, Government of India Pages: 25 (6696 words) Published: September 25, 2014
Indian Construction Industry – 2006-07

13th AsiaConstruct




P.R. Swarup,
Director General,
Construction Industry Development Council, India


Indian Construction Industry – 2006-07

Indian Construction Industry – An Overview of Practices


The paper discusses the overview of practices being used in Indian Construction Industry, one of the fastest growing Construction Industry Internationally and the second largest employer in India. The paper deals with the key areas of construction opportunity and & activity, the use of PPP models, type and extent of use of International Standard Form of Contracts and Contract administration and certification processes.

Construction Industry Development Council

Construction industry Development Council (CIDC) is the apex body of Construction Industry of India and is promoted jointly by the Planning Commission, Govt. of India and the Construction Industry of India. The paper describes, in brief, the political, social and legal framework. The paper details the economic overview, administrative and regulatory features, enhancement and development of Indian Construction Industry and the globalization of construction services with a perspective of WTO and GATS.

Political, Social & Legal framework:

Secular Constitution.

Stable Democratic environment since 1947.

Broad consensus on Economic policy across party lines.

Independent multi-tier judicial system.

Judicial systems in sync with international practices.

Preferred language of domestic business & international interactions is English.


Indian Construction Industry – 2006-07

Economic Overview

India’s economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries and a multitude of support services & industries. Production, trade, and investment reforms have provided new opportunities for Indian businesspersons. India has an estimated 350 million middle class consumers. :

India is the second fastest growing economy of the world at present. India has recorded one of the highest growth rates in the 1990s. The target of the 10th Five Year Plan (2002-07) is 8%. India’s services sector growth of 7.9% over the period 1990-2001 is the second highest in the world.

India is a young country with median age of population being 24.6 years & one-third of the population is below 14 years of age.

Long run GDP growth from mid 1990s has now stepped up to 6.5% from an average of 5% a decade & half ago and less than 3% two decades ago.

The average annual growth rate for the next few years is expected to be 7% to 7.5%

The opportunities unfolding in India is as a result of reforms enacted from early 1990s as well as a result of India’s increasing competitiveness & confidence

A unique feature of the transition of the Indian economy has been high growth with stability.

4th largest economy in terms of purchasing power parity.

350 million middle-class consumer market.

Steady economic growth over 50 years.

Increasingly transparent & open policies to access, investment, location, choice of technology, import and export.

Government rapidly moving out of ownership / Management of commercial enterprises by a process of disinvestment of existing Government-owned businesses.

Positive outlook to international investments & trade policies.

Fiscal incentives & Central Government & States support in physical & social infrastructure development.

Very large pool of educated and trained & skilled manpower

Rapidly developing R&D, infrastructure, technical and marketing services.

Agricultural self-sufficiency, rich mineral base and abundance of other natural resources.

Large, diversified...
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