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'Construction key to 8% growth'
February 14, 2004 16:44 IST
National Productivity Council said on Saturday that the success of road construction activities needs to be replicated in all sectors of the economy to achieve the eight per cent growth target as envisaged in the 10th Five-Year Plan.
"The success of construction sector is an essential pre-condition for achieving over eight per cent growth rate," S K Pachauri, NPC director general, said at a seminar in New Delhi to mark the 'Productivity Fortnight' organised by the exhibition organiser Tafcon Projects.
The construction sector has huge linkages, both forward and backward, with the rest of the economy, he said, adding that its growth could ensure higher employment and productivity levels in the economy.
The sector accounts for 5.1 per cent of gross domestic product and 44 per cent of gross fixed capital formation.
On importance of the sector with respect to the economy, Pachauri quoted an Indian Institute of Management study, which says that a 10 per cent rise in spending on construction sector can lead to a three per cent increase in GDP.