MoSPI Study Reveals Scale Of Unincorporated Construction Sector, Nearly 1 Crore Households Build Homes
In a first-of-its-kind exercise in decades, the Ministry of Statistics and Programme Implementation (MoSPI) has released a comprehensive pilot study shedding light on India’s vast unincorporated construction sector, highlighting its critical role in the economy and household activity.
The study, conducted by the National Statistics Office (NSO), estimates that around 98.54 lakh households undertook construction for their own use over the past year, underlining the scale of self-driven housing activity across the country.
The report found that approximately 10.27 lakh unincorporated construction establishments are actively engaged in the sector, with nearly 77% employing at least one hired worker regularly. On average, each establishment employed around five workers, while households undertaking construction engaged about four labourers.
These small builders and household-led projects form a significant but previously under-measured segment of India’s construction ecosystem, contributing to employment generation and local economic activity.
The study highlights that the average fixed assets owned by such construction establishments stand at ₹5.21 lakh, while the average outstanding loan per establishment is about ₹1.40 lakh.
In terms of productivity, the Gross Value Added (GVA) per market establishment was estimated at ₹7.98 lakh, with output per establishment reaching ₹16.25 lakh. For non-market establishments, net value added stood at ₹2.77 lakh.
A key insight from the report is that nearly 97% of households relied on their own income to finance construction, accounting for about 77% of total expenditure. At the same time, around 21% of households accessed institutional loans, with higher participation in rural areas (23%) compared to urban areas (13%), indicating improving access to formal credit.
Construction costs were largely driven by materials, which accounted for nearly 75% of total spending, while labour contributed around 22%. Core materials such as bricks, cement, and steel made up about 60% of total material expenditure.
MoSPI said the pilot study marks a significant step in bridging long-standing data gaps in the unincorporated construction sector, which had remained largely untracked compared to the formal segment.
The findings have already been used as inputs for revising national accounts statistics, helping refine estimates of economic indicators related to construction.
The survey, conducted between July and December 2025, covered over 19,000 households and nearly 5,000 construction establishments across rural and urban areas. Data was collected using digital tools through Computer Assisted Personal Interviewing (CAPI), ensuring greater accuracy and efficiency.
MoSPI noted that the initiative reflects its ongoing efforts to generate reliable, granular data to better understand sectors that play a crucial role in economic growth, employment, and infrastructure development.
