The Indian construction sector will remain stable in the next financial year, with a “slow but steady” increase in revenue and improvement in earnings, according to ratings agency, India Ratings & Research (Ind-Ra).
“Order inflow is likely to grow in FY2018, primarily driven by increased public investment in transport and urban infrastructures, power transmission, and water and irrigated projects,” the ratings agency said. Overall investment in roads, housing and electrification increased 18% year on year in the 2017 – 2018 budget.
“However, the allocation for the National Investment and Infrastructure Fund continues to be low,” Ind-Ra continued. “The fund was expected to leverage the initial funding multifold for investment and provided a stimulus to the infrastructure sector, which will not happen in FY2018.”