GVA per unit in unincorporated construction at Rs 7.98 lakh

A new report from the statistics ministry details the construction sector's economic performance. Unincorporated construction establishments show significant gross value added and output. Tamil Nadu leads in GVA per market establishment. The study...

New Delhi: The gross value added (GVA) per establishment in the unincorporated construction sector stood at ₹7.98 lakh, while gross value of output (GVO) was estimated at 16.25 lakh, according to a report released by the statistics ministry on Friday.

Among states, Tamil Nadu (₹24.7 lakh) led in GVA per market establishment, followed by Karnataka (₹11.9 lakh) and Jharkhand (₹11.9 lakh). A market establishment is one which provides most of its produced goods and/or services at an economically significant price.

During the reference period of the last 365 days covered in the pilot study, conducted between July and December 2025, an estimated 10.27 lakh establishments were engaged in construction compared to 98.54 lakh households.


On average, an unincorporated construction builder employed about five workers during this period, with around 77% reporting the engagement of at least one hired worker on a fairly regular basis. The number of workers per establishment was 4.8, higher in urban areas (5.5) than in rural areas (4.5).

The study's findings were used to update rates and ratios for estimating key economic indicators in the construction sector under the new gross domestic product (GDP) series.

Fixed assets per establishment stood at ₹5.21 lakh, while outstanding loans were estimated at ₹1.4 lakh.
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Bricks, cement and iron and steel together accounted for nearly half of total spending for establishments and about 60% for households. Expenditure on paint, varnishes, and lacquers was significantly higher among establishments and urban households than in rural areas.

In terms of financing, 97% of households reported using their own income to fund construction, accounting for about 77% of total expenditure. Around 21% relied on institutional loans, contributing roughly 17% of total spending. Access to such loans was higher in rural areas (23%) compared to urban areas (13%).
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