Construction sector to see 12-16% decline in investment in FY21: Crisil

MUMBAI: Investment in Indian construction industry is likely to witness a 12-16 per cent decline to nearly Rs 7.3 lakh crore during the current fiscal year, as COVID-19 pandemic has severely impacted the economy and liquidity scenario, CrisilNSE 1.45 % said.

According to the rating agency, the economy, which has been facing external risks such as weak global demand, supply disruptions and global financial shocks, now faces factory shutdown, reduced discretionary spending and delayed capex cycle.

“The construction industry, which mirrors the economy, is expected to take a huge blow from all this. As a result, a 12-16 per cent contraction in construction investment is expected this fiscal to Rs 7.3 lakh crore from Rs 8.6 lakh crore in FY2020,” the agency said.