Inflation is killing growth in construction industry ??

It is similar to the manufacturing industry. while building something you require material & labour, day to day essential items like food, fuel, consumer goods have become costly, therefore the material price or manufactured things have become costly as the raw material prices have gone up. Thus the cost  of cement, steel, transportation etc. have also increased and consequently the total cost of construction has increased.

Food processing and food production industries have suffered even more.

Yes, due to inflation price has already rise so high that there are few buyers and therefore there is the condition of high price but no buyer, whereas it should have been low price, low margin but huge sales volume. 269 sectors are dependent on real estate and construction and therefore these 269 sectors such as iron, steel, cement etc influence the price of real estate to great extent and this is what happened. With rise in price of cement, steel and so on....real estate prices went up which is killing the sector

This is relevant in the case of Construction Industry in terms of Assets & Liabilities in the Joint Sector , Public Sector and Private Sector for Home -India and NRE-India as a whole . Earlier, I  provided debated contents on the following Link :

http://toostep.com/idea/how-can-one-counter-high-inflation-which-is-there-at-the-mom

sd/- Dr.Rojukurthi Sudhakar Rao .

ex-C.S.I.R.Jr.Research Scholar@Andhra Univers'

on my personal home business HP L'TOP 520 MODEL

30-5-'11  IST 11PM : WESTERN INDIA .

yep

just like DLF is killing cricket

Certainly upto certain extend Government can control the inflation of real estate sector by controlling the cost of construction by subsidising the basic structural materials such as cement, sand, steel etc. .Do not allow the private sectors money power to high jack the real estate market. The local authorites can definetly impliment lot  of measures to control this.

Yes inflation rides construction costs. Immediately , after Tsunami in down South, a massive program was launched to provide home for all who lost in Tsunami. And there after, Govt. brought in a scheme to introduce New concrete home for every body with a subsidy of Rs 80000/. These two program we can say , considerably , hike the inflation. Say, A mason wage Rs500/ ; a load of quarry sand(2 unit) Rs10000/; a load of Brick(4000numbers) Rs24000/; Cement Rs 300/. Are you not looking at the hurdle for the Construction Industry here?.

This is a very intersting query since it throws light into how India developes its 'manpower'. In the '90's we started raising our wage levels and the results are visible for everyone. It also throws light into how we manage our currency.

There is a dictum in economic theory that a workers wage level equates with his or her skill level. Indian economy depends soley on work experience rather than skill already inherent in academic training.  Academicaly incroporatee skills only can provide unlimited groth in ones profession rather workd experience has limits to the extent of managing precesses. So wages won't rise beyond certain levels because skill required for 'incremental output' to substanitate wage level is missing from the worker who has only 'work experience'. If wages won't rise then prices won't rise and industries including construction cannot push their products at higher prices.

When it comes to maney management we choose 'low value currency' policies. This will only help in raising the prices and citizen won't be able to afford the products at higher prices sinces their 'wages' don't  grow at the rate of price inflation.

This puts the industry in a quandrie and one has to wait for things to change were we have efficient 'academic policies' along with other economic guidlines driving our economies till these sorts of 'spontaneous lags and anomoalies' sprouting up in the economy is avoided in future.

 Hi,Ma'am

 Inflation's effects on an economy are various and can be simultaneously positive and negative. Negative  effects of inflation include a decrease in the real value of money and other monetary items over time,  Positive effects include ensuring RBI can adjust nominal interest rates.The construction Industry  can benefit from adjustment of nominal interest rates as well as allowing the buyers flexibility in  repayment.