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The share of construction sector in GDP-

1970   —   1971    —      5.4%
1990   —   1991    —      4.4%
1991   —   2000    —      5.1%

The share of construction sector in total gross fixed
capital formation (GCF) —

1970    —    1971    —    60%
1990    —    1991    —    34%
1993    —    1994    —    48%
1999    —    2000    —    44%

Clearly, there has been a decline in the share of construction sector in GDP and GCF.

The main season for this was reduced Government spending on Physical infrastructure in the last decade.

Though there has now been an increasing emphasis on involving the private sector in infrastructure development through Public-Private Partnerships and mechanisms as BuildOwn-Operate (BOT), Private sector investment has not reached the expected levels.

The Government is now providing substantial fiscal stimuli by way of programme like the —
(1) National Highways Development Project (NHDP)
(2) Pradhan Mantri Gram Sadak Yojona (PMGSY) (3) Power Project.



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