The Indian economy 2020 impact due to the pandemic has been largely disruptive. India's growth in fourth quarter of the fiscal year 2020 went down to 3.1% according to the ministry of statistics. The chief economic adviser to the government of India said that this drop is mainly due to the coronavirus pandemic effect on the Indian economy.
The effect of India's lockdown hit the construction industry along with every other industry in many ways. As suggest by a building material company has reported an 80% fall in demand due to the effect of lockdown in India.
When there has been steep hike in construction material. Builders and real-estate developers suffer and worried, firstly because of the migration of construction worker and now the unusual spike in building material for there project.
Many Challenges lie ahead for the construction industry after the lockdown and the given sitiuation. right from the avalaibility of worker, supply of building material, monitoring worker's health at site and more importantly executing the work without any hurdles.
Factor Which Effect the Price of Building Materials
Worker availability is a key aspect in construction industry, as many site worker are from other state. Due to lockdown worker migrate to there home. Once the lockdown is clear many worker will return to there working place but, for now work has to be done with available workforce.
All the building material manufacturing industries such as raw material, cement, steel etc. too needs workers to fullfill the materials supplies need. with minimum availability of workforce building material industries has to overcome the loss of shutting the company for more than three months. Now this will directly impact to the cost of building material.
The industry has to make ensure the well being of labours/worker by providing additional things such as shelter and maintaining health camp. which is additional financial burden on builders. This indirectly impact in the increment on the price of building material. All builder cannot sustain this burden specially small and medium project owner and builders.
Steep Hike in Cement Price
This pandemic has hit cement dealer hard as a large number of cement bags facing damage in godowns across the country. Cement companies provide a three month shelf life but we know that cement will loss up to 20% of its strength after one month.
Although the government give relaxation of lockdown to construction industry including building material supplier such as cement, steel etc. but as per the construction codes provided by the Indian standard cement can deteriorate in two or less period of time if its not properly stored.
A bag of cement that used to cost ₹225 before lockdown, is now priced between ₹375 and ₹400. The price hike came into effect against an agreement made between the developers and government in 2019 that no further increment in the building materials price without the government permission. This steep price hike is definitely going to serve huge blow to the people.
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