Construction Boom Fuels Economic Surge in Uttar Pradesh and Bihar
A report by HDFC Bank indicates a strong revival in India's construction sector, with Uttar Pradesh and Bihar leading the charge post-pandemic. The sector's contribution to their Gross Value Added (GVA) in FY24 showcases significant growth, buoyed by government infrastructure initiatives and strategic investments.
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A resurgence in India's construction sector is propelling remarkable economic growth in Uttar Pradesh and Bihar, according to a recent HDFC Bank report. Marking a sharp post-pandemic rise in their contribution to the Gross Value Added (GVA) in FY24, both states are benefiting from government-led infrastructure support.
The report highlights Uttar Pradesh's dominance in India's construction GVA, with a commanding 12.5% share, followed by Tamil Nadu and Maharashtra. Bihar, also witnessing substantial growth, reached a construction share of 11.2% in FY24, owing to increased public investments in infrastructure projects.
Experts attribute the construction sector's revival as a crucial growth driver for regional economies, offsetting weaknesses in other sectors and signaling broader economic recovery. The performance in these northern states reflects heightened public capital expenditure and robust private sector involvement in critical infrastructure developments.
(With inputs from agencies.)
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