The construction industry is the second largest industry in India after agriculture. It accounts for about 11% of India’s GDP. It makes significant contribution to the national economy and provides employment to large number of people.Construction constitutes 40% to 50% of India's capital expenditure on projects in various sectors such as highways, roads, railways, energy, airports, irrigation etc.There are mainly three segments in the construction industry like real estate construction which includes residential and commercial construction; infrastructure building which includes roads, railways, power etc; and industrial construction that consists of oil and gas refineries, pipelines, textiles etc.Building material is any material which is used for a construction purpose. Many naturally occurring substances, such as clay, sand, wood and rocks, even twigs and leaves have been used to construct buildings. Apart from naturally occurring materials, many man-made products are in use.

The feasibility of infrastructure projects in ports, roads, airports and railways with private-sector majority ownership is already evident. The government also expects a substantial increase in the share of private sector investments in infrastructure from 19 per cent in the Tenth Plan to around 30 per cent in the Eleventh Plan. The biggest increase in private participation is expected in roads (from 5 per cent to 36), ports (47 per cent to 74 per cent) and railways (less than 1 per cent to 20 per cent). The Planning Commission estimates that the remaining infrastructure investments will be funded by the central and state government. According to a study by ASSOCHAM, the burgeoning Indian construction industry, currently worth $70 billion, will rise to US$120 billion by 2010.

The Commonwealth Games - 2010 in New Delhi have thrown mega opportunities for Building Material Companies, Construction Equipments & Technologies companies. The Govt. of India has permitted FDI up to 100% for development of integrated townships in India last year. India is now the second most favored destination for FDI, behind China. A large and growing middle class population of more than 300 million people, a changing life style, better cost of living etc is growth drivers for this sector.

The Indian construction industry, an integral part of the economyand a conduit for a substantial part of its development investment, is poised for growth on account of industrialization, urbanization, economic development and people's rising expectations for improved quality of living in the coming years.

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