The revival in India's construction sector has driven robust growth in Uttar Pradesh and Bihar, with both states witnessing a sharp rise in the sector's contribution to their Gross Value Added (GVA) in FY24, according to a report by HDFC Bank The report noted that UP and Bihar have seen rapid growth in construction post the pandemic, propelled by the government's support for infrastructure development.

It stated“The revival in the construction sector has powered recent growth in Uttar Pradesh and Bihar, together accounting for 13.4 per cent and 11.2 per cent of the state's GVA respectively, outpacing the All India average of 8.9 per cent”.

The report also noted that both states are among the top 3 beneficiaries of the central government's interest-free loan for capital investment projects.

The report also shared that Uttar Pradesh has emerged as the leading contributor to India's construction GVA, commanding a 12.5 per cent share in FY24, followed by Tamil Nadu (11.8 per cent) and Maharashtra (10 per cent).

Other major contributors include Gujarat (6.9 per cent), Karnataka (5.7 per cent), Kerala (5.6 per cent), and West Bengal (5.4 per cent).

The surge in Uttar Pradesh's construction sector marks a strong turnaround from previous years.

The state's construction share in total GVA rose sharply from around 12 per cent in FY12 to 13.4 per cent in FY24, indicating an expansion in infrastructure spending and housing development.

Bihar also displayed a steady recovery, with its construction share climbing to 11.2 per cent in FY24 after years of subdued growth.

The revival of increased public investment in infrastructure, particularly under government-led programs focused on housing, roads, and urban development.

The data highlights how construction activity has become a key growth driver for regional economies, particularly in northern India, helping to offset weaknesses in agriculture and manufacturing.

Overall, the construction sector's performance in Uttar Pradesh and Bihar signals a broader economic recovery trend, reflecting both improved public capital expenditure and stronger private participation in infrastructure projects.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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