Building a sustainable future
The Construction industry in India consists of the Real estate as well as the Urban development segment. The Real estate segment covers residential, office, retail, hotels and leisure parks, among others. While Urban development segment broadly consists of sub-segments such as Water supply, Sanitation, Urban transport, Schools, and Healthcare.
- Policy Support - In March 2021, the Parliament passed a bill to create a $ 2.5 Bn development finance institution called National Bank for Financing Infrastructure and Development (NaBFID) to fund infrastructure projects in India.
- In FY21, infrastructure activities accounted for 13% share of the total FDI inflows. FDI in the construction development sector (townships, housing, built up infrastructure and construction development projects) and construction (infrastructure) activities stood at $ 28.64 bn and $26.22 bn respectively, between April 2000 and June 2022.
- Cement production (weight: 5.37 %) increased by 2.1 % in July 2022 over July 2021. Its cumulative index increased by 13.3 % during April to July 2022-23 over the corresponding period of previous year.
100% Foreign direct investment in the construction industry in India under automatic route is permitted in completed projects for operations and management of townships, malls/shopping complexes, and business constructions.
100% Foreign direct investment in the construction industry is allowed under the automatic route for urban infrastructures such as urban transport, water supply, sewerage, and sewage treatment.
For further details, please refer FDI Policy
Share in India's GDP
Second largest employer in India
Second largest FDI recipient sector for India in 2020-21
Third largest construction market globally by 2025
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
The construction Industry in India is expected to reach $1.4 Tn by 2025
- Cities Driving Growth - Urban population to contribute 75% of GDP (63% present), and 68 cities will have a population of more than 1 mn
- The construction industry market in India works across 250 sub-sectors with linkages across sectors.
- The Real Estate Industry in India is expected to reach $1 Tn by 2030 and will contribute 13% to India’s GDP
- Residential- By 2030, more than 40% of the population is expected to live in urban India (33% today), creating a demand for 25 Mn additional mid-end and affordable units.
- Under NIP, India has an investment budget of $1.4 Tn on infrastructure - 24% on renewable energy, 19% on roads & highways, 16% on urban infrastructure, and 13% on railways
- Schemes such as the revolutionary Smart City Mission (target 100 cities) are expected to improve quality of life through modernized/ technology driven urban planning.
100 smart cities currently. Mission to improve quality of life through modernized/technology driven urban planning
Eleven industrial corridors planned
Real estate demand is set to increase by 15-18 Mn sq. ft. by 2025 across major cities
Expected to add an incremental of ~10 mn tonnes by 2023
Increasing demand for commercial space
Construction of office spaces, hotels, retail, entertainment units. The net office space absorption across India's largest 6 cities stood at 31.9 Mn sqft in 2020