The main objective of the present work is to study the present situation of the precast construction industry in India. Suggestions for improvement of the industry and study on cost effectiveness of precast concrete construction for single and multi-story residential buildings are to be given. A literature survey was carried out in order to obtain the comparison between the conventional buildings with precast concrete buildings in India and some field visits are conducted to collect data to investigate the current situation regarding precast industry in India. In order to compare the cost of precast and in-situ construction, double storey residential buildings is considered.