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. Indian real estate attracted $5 billion institutional investments in 2020.
- By 2025, Construction market in India is expected to emerge as the third largest globally
- By 2025, Construction output is expected to grow on average by 7.1% each year
- By 2020, Construction equipment industry’s revenue is estimated to reach $ 5 bn
Construction Industry in New India has witnessed a 286% growth in FDI inflow in FY 2020-21.
100% FDI under automatic route is permitted in completed projects for operations and management of townships, malls/shopping complexes, and business constructions.
100% FDI is allowed under the automatic route for urban infrastructures such as urban transport, water supply and sewerage and sewage treatment.
For further details, please refer FDI Policy
Share in India's GDP
Highway construction in India (2017-18)
- $ bn
New investment in road infrastructure
Second largest employer in India in 2017
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 value terms is expected to record a CAGR of 15.7% to reach $ 738.5 bn by 2022.
The industry contributes 55% share in the Steel industry, 15% in the Paint industry and 30% in the Glass industry.
The Construction industry in India is expected to grow at 5.6% during 2016-20, compared to 2.9% during 2011-15. The activities that registered the highest growth include export cargo (10%), highway construction/widening (9.8%), power generation (6.6%), import cargo (5.8%) and cargo at major ports (5.3%).
- India will be required to spend $ 454.8 bn on infrastructure development over the period of five years (2015-20), with 70% of funds needed for power, roads and urban infrastructure segments
- Expected cement capacity addition of 80-100 MT per annum over next five years.
- 34 Km of National Highways constructed per day in 2020-21; ~3X of the rate of construction of highways of about 12 km per day during 2014-15
100 smart cities to be developed by 2020
Eleven industrial corridors planned
Railway stations/ lines
25 railway stations re-development besides 3,500 km line addition
14 CEZs, 6 new ports are planned and three mega ports are planned
Increasing demand for commercial space
Construction of office spaces, hotels, retail, entertainment units. Net absorption of office space in India crossed was 8.24mn sq ft in the last quarter of 2020, an increase of 52% as compared to the previous quarter