Construction sector to expand

India's booming construction sector could be worth US$ 120 billion by 2010, according to the latest study by the Associated Chambers of Commerce and Industry of India (Assocham).

The report said demand for manpower could see employment in the sector increase from the present 30 million to 70 million by the same date, with the sector's contribution to GDP increasing to 4%.

“The massive investment in the construction industry will be driven by the growing requirements of sectors such as transportation, power, urban infrastructure, housing and irrigation to ensure that the industry grows at the projected level,” said Assocham president Venugopal Dhoot.

Mr Dhoot said growth in the construction sector could reach +15% per year, with the Government investing US$ 150 billion in the next five to six years for the development of the country's infrastructure. US$ 60 billion of which will be spent on building roads across the country.

The study also said the telecoms sector would requires up to US$ 10 billion of investment by 2017, with the civil aviation industry needing US$ 4 billion within the next decade.