HEADLINES:  

The FY2012/13 had a growth of 6.0% for the Indian construction sector. Due to monetary issues and other related policies the Indian construction industry showed a lackluster performance in 2012-13. But the outlook for the construction sector beyond FY2012/13 is brightening up.

Not only are monetary conditions likely to improve for construction companies in FY2013/14, but the government is also making pertinent efforts to remove bottlenecks that are delaying infrastructure projects in India. India's construction sector is to reach 7.6% growth in FY2013/14.

In 2012 the Asian Development Bank (ADB) and India Infrastructure Finance Company Limited (IIFCL) have launched the first version of the credit enhancement scheme or infrastructure bond guarantee scheme.

This risk-sharing facility will partially guarantee INR7.2bn (US$128mn) of rupee-dominated bonds issued by Indian companies to finance infrastructure projects. In 2012, the government announced that it is planning to set up a National Investment Board (NIB) to speed up infrastructure development within the country.


The NIB will focus on fast-tracking the execution of approved projects by getting all regulatory clearances. In 2012, the Indian government finalized the long-delayed bill for land acquisition, paving the way for the bill to be introduced during the current parliamentary session.

The final draft of the bill now proposes that land for public-private partnership (PPP) and private projects can be acquired with a two-thirds majority from affected landowners - an improvement from the earlier requirement of 80%.

  INDIAN CONSTRUCTION INDUSTRY AT A Glance IN 2011 - 2012

  Construction Chemicals Manufacturers' Association (CCMA)

  Indian Construction Equipment Manufacturers Association (ICEMA)

  Builders' Association of India (BAI)

  The Indian Machine Tool Manufacturers Association (IMTMA)

  Tool and Gauge Manufactures Association Of India(TAGMA)

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