What do you know about GDP?

What is the GDP?

Gross Domestic Product (GDP) represents the total monetary value of all final goods and services produced and sold on the market. Within a country during a specific period of time which is generally a year.

THE G IN GDP is GROSS that indicates that products are counted regardless of their subsequent use. A product’s final “sales receipt” will be added to the total GDP figure.

THE D IN GDP is DOMESTIC that indicates that the inclusion criterion is geographical, goods and services counted are those produced within the country’s border. 

THE P IN GDP is PRODUCT that indicates for production, or economic output, of final goods and services sold on the market.

How to calculate GDP

There are three ways to calculate GDP 

PRODUCTION APPROACH – The sum of the value-added at each stage of production.

EXPENDITURE APPROACH- The sum of purchases made by final users.

INCOME APPROACH- The sum of the incomes generated by production subjects. 

CHANGE IN GDP OF INDIA IN THE YEAR  2020

Due to the lockdown imposed in India for coronavirus from March and has gradually increased. India has become the third worst-hit country by the virus after the USA and Brazil. For the lockdown, the economic condition of the country fell down. The Indian economy shrank by 23.9%. It is the biggest contraction on record for India.

Construction (-50.3%), hotels and transportation (-47%) and manufacturing (-39.3%) has a never seen downfall. Private spending shrank 26.7%, inventories fell 20.8%, exports went down 19.8% and imports sank 40.4%. In contrast, government consumption increases by 16.4% because of the various relief funds.

                                                                         GRAPH 

EFFECTS ON CONSTRUCTION INDUSTRY  

“ The growth of GDP has declined largely due to the low growth in the manufacturing and construction sector,” Minister of state for statistics and programme implementation said by Rao Inderjit Singh.

The building construction industry in India is expected to record a contract of 7.5% in 2020. Due to the pandemic, the construction industry had been showing signs of weakness. The residential market struggling due to rising unemployment. The quarterly value adds data shows growth in the ‘financial, real estate & professional services’ decelerating to 2.4% in Q1 2020.

Reduced labour at construction sites may lead to the idling of the plant and machinery deployed for construction work. These machines have a fixed hiring cost, which is charged to any project regardless of the machine utilization. 

                                                   Image of a construction site

How to calculate GDP

THERE ARE SOME RECCOMDATIONS TO THE CONSTRUCTION INDUSTRY IN THIS JUNCTURE

Consider the release of contractor retention and performance bank guarantee, as applicable depending on the stage of the project. 

Consider providing benefits in the form of lower GST than the prevailing. 

Waiver of minimum electricity and other charges imposed during the closure of the project sites.

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Disaster resistant construction practices

Disaster resistant construction practices:

Housing is one of the basic needs of any individual and a mandatory requirement for the sustainable growth of any state. 

Structural designs in construction are important as disaster-resistant. The quality and methodology of construction are important as well. There is a fundamental distinction between the design of a building and the construction methods used to fabricate that building. 

Most possible reasons, why disaster can affect buildings:

The reasons can be one is addressing housing needs whereas other is providing safety from natural calamities. Natural calamities like earthquakes, landslides, storms, heavy rainfall, and floods. 

Most casualties in the event of disasters are caused by the collapse of buildings, both engineered and non-engineered. There have been significant revisions in most of the Indian standards in the last decade due to knowledge. 

For successful disaster mitigation, it must be ensured that all new construction in seismic zones is complaints with the BIS Codes. 

As a step towards disaster risk reduction, one of the initiatives that must be taken. Proper training of administrators, engineers, and contractors and the development of master trainers is timely and a prominent step in the right direction.

Earthquake– Earthquake resistant construction, the fabrication of building or structure that is able to withstand the sudden ground shaking. The characteristics of earthquake-resistant should always incorporate ductility within the structure and structural members. 

In buildings constructed with steel-reinforced concrete, both the steel and the concrete must be precisely manufactured and achieve the desired ductile behavior. 

Building failures during earthquakes often are due to poor construction methods or inadequate materials. If concretes are not mixed properly, consolidated, or cured to achieve its intended compressive strength. Thus buildings are susceptible to failure under seismic loading. This problem is often made worse by a lack of local building codes or the absence of inspection and quality control. 

                                                                       Earthquake

Storms- If storms occurred there must be position facilities to minimize wind impact, there should be no site facilities in straight, wind-tunnel-like rows. There should be separate wings with proper separation to let wind pass between buildings. It must be ensured that all the openings are properly reinforced to minimize the chances of diagonal forces.                                                                               Storm

Landslides- Landslides pose a recurrent hazard to human life and livelihood. Hazards are mitigated mainly through precautionary means for instance, by restricting or even by removing populations from areas where landslides have occurred earlier.

                                                                  Landslide

Heavy rainfall- If the quality of the material is not good, a building may see seepages and leaks in a few years after construction. There should be a proper drain facility so that water does not stagnate there. Proper improved materials should be used properly as recommended by engineers. 

                                                         Heavy rainfall resistant

Flood- The floodproofing options to occupant safety must be evaluated in the pre-design phase. Evacuation provisions must be made for occupants. Safe access to and egress from flood proof buildings is a critical factor in determining which floodproofing measures are appropriate.

                                             Floods resistant construction ideas

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