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. FDI in the construction development sector (townships, housing, built up infrastructure and construction development projects) and construction (infrastructure) activities stood at $26.08 bn and $24.72 bn, respectively, between April 2000 and March 2021.
- 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
- Construction equipment industry revenue stood at $ 6.5 Bn in 2020
Cement production (weight: 5.37 per cent) increased by 21.8 per cent in July, 2021 over July, 2020.
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
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 is expected to reach $1.4 Tn by 2025
- Construction Industry received the 2nd highest FDI in the period 2000-2020
- The Construction Industry works across 250 sub-sectors with linkages across sectors. Broadly, it can be divided into real estate and infrastructure construction.
- The Real Estate Industry in India is expected to reach $1 Tn by 2030 and contributes to 13% of GDP
- 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
- Under the Smart Cities Mission till June 2021, 2,734 projects have been completed of the total 5,956 projects
100 smart cities currently
Eleven industrial corridors planned
Railway stations/ lines
600 stations planned for redevelopment
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. The net office space absorption across India's largest 6 cities stood at 31.9 Mn sqft in 2020