The Indian construction industry is very large and is important to various sectors of the economy. It employs about 31 million persons – second only to agriculture in terms of employment. It consumes 40-50% of the National Plan outlay and contributes 20% of GDP. The present size of Construction Industry in terms of annual monetary values is estimated at Rs. 310,000 crores (includes Public & Private Investments), with an employment status of 31 million man-years/year. As stated earlier, due to the conscious thrust of the Government to improve the state of physical infrastructure, the Construction Industry is experiencing a great surge in the quantum of the work load, and has grown at the rate of over 10% annually during last five years. Whereas until 1997 the share of public sector in gross fixed capital formation and construction has been declining continuously, the share of housing Sector and private sector has been increasing. However, during the period 1997-2002 the same got stabilized and thereafter started showing a rising trend. This happened mainly because of substantial investments in the areas like transportation and rehabilitation of civic infrastructure, however, the housing sector continued showing a declining trend as far as the public – government investment is concerned where a larger involvement of private sector is increasing. As per the industry estimates the employment figures have shown a steady rise and it is estimated that at present the construction industry employs 31.46 million personnel. With the present asset Creation potential of the Construction Industry estimated at Rs. 310,000 Crores the share to the GDP works out 12 %, and in terms of the employment generation construction provides employment to 14 % of employable citizens. The manufactured goods (Construction materials and Equipment) account for approximately 8.6% of GDP included in the gross share defined above. Based on the analysis of forward and backward linkages of construction, the multiplier effect for construction works out to be in the range of 1.8 to 2.0.The multiplier effect has been worked out by broadly classifying more than 30 inputs and upstream activities, both related to manufacturing sector as well as cottage industry, for construction