Difficulties faced by construction industry due to slowdown

A significant slowdown is suggested by most of the indicators in year 2011-2012. It is claimed by Centre for Monitoring Indian Economy that projects worth Rs 4 lakh crore were completed in year 2011-2012. The growth rate of construction industry has dropped as the steel and cement rate are stagnant. It is estimated by an Economic Survey that a growth of 4.8 per cent in the construction sector has been observed in 2010-2012 which was comparatively higher to 8 per cent in 2010-2012. The factor that restricts the construction industry is shortage of skilled labour, slowdown in real estate, slow environment clearance and high interest rates. In the first three quarters of 2011-2012 these factors were listed keeping in mind the performance of various companies in construction space. Amongst the most cyclically sensitive industries comes Construction. Its activity is highly dependent on real estate sector activities and physical infrastructure creation such as bridges, roads and dams. Huge labour force is absorbed by the service industry. The major requirement is in the fields of cement and steel industry. But sufferings are caused by poorly framed contracts and change in policy. The construction industry can seriously shrink if the economy is depressed. It can also reflect accelerated growth if there is boom in the economy.