Investments in construction sector to see 12-16% dip in FY21: Crisil report

The decline in investment factors in lower capex by central and state governments due to diversion of funds towards healthcare, public welfare and social obligations

Investment in Indian construction industry is likely to witness a 12-16 per cent decline to nearly Rs 7.3 trillion during the current fiscal year, as Covid-19 pandemic has severely impacted the economy and liquidity scenario, Crisil 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