ABSTRACT
Construction is an integral part of an economy’s infrastructure and industrial development. The construction industry is characterised by its fragmented and complex nature having a large number of players, with many backward and forward linkages across both public and private sectors and with diverse manufacturing and service industries. According to the Economic Survey 2017–18, by 2040, the cumulative figure for an infrastructure investment gap in India could reach around US$526 billion. The results of an empirical analysis with a multiple regression analysis reveal that investment in capital expenditure, i.e. construction, has a significant and positive effect on the growth and development of India. However, the results of the study also indicate that time plays a role in determining gross domestic product. Thus, we can infer that infrastructure is important for faster economic growth, social as well as economic performance, improved access to job markets and poverty diminution in an economy. Consequently, infrastructure development becomes the foremost input in the socioeconomic development of an economy. In this context, the growth and profitability of the construction industry is extremely important because of the major role it plays in the development of infrastructure in India.
