Construction materials sales increase?

Prices of building materials are likely to increase manifold during the current fiscal is, according to speculations. Since the government is keen to invest more funds in development projects in rural areas, the sales of construction materials are predicted to increase. Compared to sales last year, the sales are likely to increase by 15-20 per cent in 2023. Export of building material in 2022 rose by 60.5 %, but the local sales dropped by 11.4 %.

According to JCB India Managing Director Deepak Shetty, the sale of building material increased last year only 8 % on account of very few road development works and other construction activities. However, governments have decided to create basic amenities across the globe to give fillip to economy, the building material sales are likely to increase in a big way. He expressed concern over the likely impact of the increased maintenance costs on supply-chain management.

Under the head of account the capital expenditure, Rs 7.5-lakh crore have been earmarked in the budget. During 2020-25, the Union Government has decided to spend Rs 108-lakh crore under the National Infrastructure Pipeline project. Besides this, the government has decided to provide drinking water facility to rural homes and embarked on Smart Cities project, new Metro Rail projects are in the pipeline, and new airports are coming up in Navi Mumbai and Jewar, which will give the much-needed support to construction industry. The PM Gati Sakti will create a record of sorts in development of infrastructure, he opined.

By the end of the current decade, India is tipped to emerge as the second largest market for building materials improving its position from the third place. India currently ranks third after the USA and China as the market for building materials.