Startup Entrepreneur in Construction Sector
India’s construction industry has been one of the most profitable economic prospects in recent history. The construction sector in India has grown significantly in recent years, and it is expected to continue growing at double-digit rates soon. Growing urbanization and population growth have been major factors driving India’s construction industry.
The construction industry in India
With an economic growth rate that is the second fastest in the world (8.9%) and a GDP that is the fourth largest in terms of Purchasing Power Parity (US$ 3.6 trillion), India is an emerging global business giant (Ernst and Young, 2012). Moreover, the population of India is projected to rise to 1.7 billion by 2050, making it 400 million in excess of China, which is currently the most populated country (UN population bureau, 2012). As a result, this will place a large strain on the existing infrastructure and construction industry to support this need.
The Indian construction industry, generally, has been growing at an average rate of 9-11% a year due to increases in domestic and international manufacturing activities and industrial growth over the past few years. There are now about $44 billion worth of commercial and real estate projects in India. In addition, construction has increased all over India due to the Indian government’s decision to permit 100% Foreign Direct Investment in the infrastructure and real estate industries.
If the Indian construction sector can address the structural inefficiencies, it will benefit from significant future expenditures and demands in infrastructure and development. Therefore, it becomes essential for entrepreneurs to comprehend this sector and begin putting effort into developing their businesses there.
Why is a business in the construction industry profitable business?
First, there will be a rise in the need for construction across the nation. As a result, the country’s construction industry and infrastructure sector are predicted to increase by 15.7% in compound annual growth rate and reach roughly $738 billion by the end of this year. Currently, the construction industry controls 55% of the Indian steel, 30% of the glass, and 15% of the paint sectors.
Due to the shortage of skilled labor, the necessity for quicker construction, and rising expectations for greater education quality and durability, the cost of building materials has increased. As a result, many factors, including the need to reduce construction, are driving the adoption of modern technologies.
Here, it’s important to realize that these issues will persist for a while. Only the frequency and severity of the challenges can be reduced. The construction industry in India has historically seen a constant upward tendency in growth. There is a possibility of a significant increase in the growth of the building business if the issues are handled intelligently.
The nation is fast becoming more urban as more people relocate from rural to urban areas. Investors will continue to have good opportunities as the Indian government works hard to reduce housing costs. As many young people enter the workforce, the demand for homes and other real estate products will rise over the next ten years. The booming economy also enables corporations to spend money on new construction and infrastructure. This increasing trajectory makes a construction company very appealing to many people.
Conclusion
The construction sector is thought to be a promising one. The sector has been continuously expanding for the past 20 years. There are several opportunities for enterprises with new projects in the works. More than 40 million people are employed directly or indirectly in the construction industry in India. Innovative entrepreneurs are needed in India’s construction sector to give it direction and propel it forward. Construction-related startups will undoubtedly prosper in the coming years, whether they focus on it directly or indirectly.
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