For the major part of 2020, the construction sector in India was overcoming the labor shortage and supply chain disruptions of their raw material. The construction sector is one of the largest employers of the workforce in India. COVID crisis-affected 8.5 million jobs in this sector. The sector was battling previously from the liquidity crunch in the wake of the fallout of the NBFC’s in the financial sector in 2019.
The situation started to improve in 2021 as the industrial operations were getting back on track. There is a pressing need for the home construction and maintenance industry to renovate the existing spaces. The work-from-home format seems to stretch for the entire 2021, as India faces a dreadful second wave of the pandemic. People are turning their temporary spaces to meet the needs of a home office. We can expect a surge in demand for the home renovation, maintenance, and interior designing sector.
66% of the construction firms in India are eyeing digitalization by learning the best practices from the developed markets. Union Government identified the pandemic as a Force Majeure incident. This will help real estate developers to extend the registration and completion date for all registered projects by six months. It will also provide time to developers to raise new financing or debt for completing their pending projects
The statistics below are taken from Industry data available pre-Corona virus impact.