The steadily shrinking share of the construction industry
The accompanying chart shows that the share of construction in gross value added has been steadily falling.
This is unfortunate because the industry is one of the chief sources of jobs for the masses.
For the first half of the current fiscal, the share of construction in total value added in the economy was 7.86%—compare that to a share of 9.73% in the first half of 2011-12.
Clearly, the government’s push to the roads sector has been insufficient to offset the malaise in real estate.
It remains to be seen whether the government’s initiatives in affordable housing will improve growth in the sector.
Between 2003 and 2008, the construction sector grew in double digits