The major objective of Atal Mission for Rejuvenation and Urban Transformation (AMRUT), is to provide basic services (e.g., water supply, sewerage, urban transport) to households and build amenities in cities which will improve the quality of life for all, especially the poor and the disadvantaged,which is a national priority. Also, the purpose of AMRUT is to (i) ensure that every household has access to a tap with assured water supply and a sewerage connection; (ii) increase the amenity value of cities by developing greenery and well-maintained open spaces (e.g., parks); and (iii) reduce pollution by switching to public transport or constructing facilities for non-motorized transport (e.g., walking and cycling).
Building a sustainable future
Construction sector consists of the real estate as well as the urban development segment.
The real estate covers residential, office, retail, hotels, leisure parks etc.
Urban development segment broadly consists of sub-segments such as water supply, sanitation, urban transport, schools, health etc.
- By 2020, construction equipment industry’s revenue is estimated to reach USD 5 bn
- By 2025, construction output is expected to grow on average by 7.1% a year
- By 2025, India's construction market is expected to emerge as the third largest in the world
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 infrastructure areas like urban transport, water supply, sewerage and sewage treatment.
for more details refer FDI Policy 2017
- Second largest employer in India
- Second largest FDI recipient in India
- Third largest market by 2025
The Indian construction industry is estimated at approximately USD 136 bn for 2017.
The sector has strong linkages with other manufacturing industries accounting for a significant share in the following industries: construction contributes 55% share in the steel industry, 15% in paint industry & 30% in the glass industry.
Major growth for the construction sector in India is expected to increase from 2.9% in 2011-15 to 5.6% during 2016-20.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%).
- About 80-100 MT of cement per annum is expected to be added over the next 5 years.
- USD 454.8 bn to be spent on infrastructure development over the period of 5 years (2015-20), with 70% of funds needed for power, roads and urban infrastructure segments.
- National GDP contribution (2012-13)
- Avg. real industrial growth rate (2008-14)
- Infrastructural investments (2012-17)
USD 1 tn
- People employed
FDI inflows (in USD) in construction development (April 2000 - December 2017)
FDI inflows (in USD) in construction (infrastructure) activites (April 2000 - December 2017)
FDI equity inflows (in USD) in construction development (April 2017- December 2017)
May 2017 - Ascendas-Sembcorp to co-develop start-up area in Amaravati. The consortium of Singaporean companies will spend USD 46.6 mn while the government will invest USD 34.1 mn in a 58:42 proportion.
February 2017 - Infrastructure Leasing and Financial Services Ltd (IL&FS) and global private equity (PE) firm Lone Star plan to jointly invest USD 550 mn in stressed infrastructure projects in India.
November 2016 - Indian real estate is likely to provide investment opportunity worth USD 77 bn through Real Estate Investment Trust (REIT). - Eligible areas are commercial - office and retail, properties across the country’s top seven cities by 2020.