THE BACKBONE of India’s economic growth lies in its houses and building construction, which significantly contributes to the gross fixed capital formation. At 55%, this sector is the largest driver of investments, with households accounting for nearly half of this share. Historically, households led the charge during peak capex cycles, bolstered by robust private sector investment. The current cycle, however, shows a slower pace of growth in construction, with both private and household capital expenditure lagging. Notably, households’ share of gross fixed capital formation has declined from a high of 37% in FY12 to just 28% in FY23.
Infographics
When The House Fire Is Far From Burning Bright!
Households’ share of gross fixed capital formation has declined from a high of 37% in FY12 to just 28% in FY23.
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