MoSPI Study Highlights India’s Informal Construction Sector

On 10th April 2026, the Ministry of Statistics and Programme Implementation released a pilot study on India’s unincorporated construction sector, revealing its significant contribution to employment and economic activity.

Key Points

Study Overview:
- Conducted by National Statistics Office.
- First comprehensive exercise in decades on this sector.
Household Construction Activity:
- Around 98.54 lakh households undertook construction for self-use.
- Reflects large-scale self-driven housing activity.
Unincorporated Establishments:
- About 10.27 lakh establishments active in the sector.
- Nearly 77% employ at least one hired worker.
- Average employment: ~5 workers per establishment.
Employment Trends:
- Household construction engages ~4 labourers on average.
- Significant contribution to local job creation.
Financial Indicators:
- Average fixed assets: ₹5.21 lakh per establishment.
- Average outstanding loan: ₹1.40 lakh.
Productivity Metrics:
- GVA per establishment: ₹7.98 lakh.
- Output per establishment: ₹16.25 lakh.
- Non-market net value added: ₹2.77 lakh.
Financing Patterns:
- 97% households rely on own income.
- 21% access institutional loans.
- Higher rural participation (23%) vs urban (13%).
Cost Structure:
- Materials account for ~75% of costs.
- Labour contributes ~22%.
- Bricks, cement, steel form ~60% of material costs.
Survey Details:
- Conducted July-December 2025.
- Covered 19,000+ households and ~5,000 establishments.
- Used CAPI (digital data collection method).