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ASSIGNMENT NICMAR / SODE OFFICE Course N0. – GPBM 11 Course Title. – Economics for Construction Business Assignment No. - ______________________________________ Date of Dispatch - ______________________________________ Last date of Receipt - ______________________________________ Of Assignment at CODE office 1. What are the prospects for growth of construction industry in India in next 5 years? Comment on it using the data and information given We will discuss it by current situation and then we will discuss it by data given as it is out dated. There are different sectors present in Indian construction industry. We will discuss it in two sectors one is Public and second is Private. In case of public construction industry before 5 years there was no huge market available but now if we observe government has initiate many big projects in last 5 years; and that is the huge pop up for construction industry. There are number of ongoing projects which are in progress; and going to make huge change in Infrastructure. Because of these projects requirement of all resources are increased. We will discuss it in brief. Infrastructure construction to pick up Infrastructure construction accounted for 23.0% of the total industry’s value in 2015. According to Timetric’s CIC, it will continue to expand over the forecast period, driven by public and private sector investments in public transport infrastructure. Consequently, infrastructure construction is anticipated to be the industry’s fastest -growing market over the forecast period, with a CAGR of 9.94% in nominal terms, to value INR9.5 trillion (US$140.1 billion) in 2020. “The country’s expanding population and urbanisation will continue to generate a need for infrastructure development. To improve trade competitiveness and cope with the population growth, the government is focusing more on infrastructure development, which is expected to result in regular investments in the maintenance and expansion of road infrastructure in the near future,” comments Danny Richards, Economist at Timetric’s CIC. Residential construction to dominate the industry Residential construction was the largest market in the Indian construction industry during 2011-2015, and is anticipated to remain relatively sizeable over the next five years, with a 30.6% share of the industry’s total value in 2020. Construction activity in the residential market will be supported by rapid urbanisation, population growth, and positive developments in regional economic conditions. Government efforts to clear slum areas by 2022 and reduce the country’s housing deficit will also help the market grow. 2.Draw demand curve for the cement industry in India, based on the data given in above table. 3.Draw Supply curve for the cement industry in India, based on the data given in above table.
