Unincorporated Construction Sector Reports GVA of ₹7.98 Lakh per Establishment
GVA per unit in unincorporated construction at Rs 7.98 lakh
The Economic TimesImage: The Economic Times
The gross value added (GVA) per establishment in India's unincorporated construction sector is ₹7.98 lakh, with Tamil Nadu leading at ₹24.7 lakh. The sector engaged approximately 10.27 lakh establishments, employing an average of five workers each, highlighting significant economic activity in construction.
- 01GVA per establishment in unincorporated construction is ₹7.98 lakh.
- 02Tamil Nadu leads with a GVA of ₹24.7 lakh per establishment.
- 03Approximately 10.27 lakh establishments were active in the sector.
- 0497% of households funded construction using their own income.
- 05Access to institutional loans was higher in rural areas (23%) than urban areas (13%).
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According to a report from India's statistics ministry, the gross value added (GVA) per establishment in the unincorporated construction sector is ₹7.98 lakh. Tamil Nadu stands out with a GVA of ₹24.7 lakh, followed by Karnataka and Jharkhand, both at ₹11.9 lakh. The pilot study, conducted from July to December 2025, revealed that around 10.27 lakh establishments were involved in construction, with an average of five workers employed per establishment. Notably, 77% of establishments reported hiring at least one worker regularly. The study also indicated that 97% of households financed construction through personal income, while 21% relied on institutional loans, which were more accessible in rural areas (23%) compared to urban areas (13%). The findings are crucial for updating economic indicators in the construction sector under the new gross domestic product (GDP) series.
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The high GVA indicates robust economic activity in the construction sector, which can lead to job creation and increased income for workers in the industry.
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