Snapshot

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.

  • 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

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

  • 9 %

    Share in India's GDP

  • 9829

    Highway construction in India

  • $16.6 bn

    New investment in road infrastructure

  • 51 mn

    People employed

A

Second largest employer in India in 2017

B

Second largest FDI recipient sector for India in 2017

C

Third largest construction market globally by 2025

Industry Scenario

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.

Growth Drivers

  • Smart cities

    100 smart cities to be developed by 2020
  • Industrial corridors

    FIve industrial corridors planned
  • Railway stations/ lines

    25 railway stations re-development besides 3,500 km line addition
  • Mega ports

    6 mega ports planned
  • Increasing demand for commercial space

    Construction of office spaces, hotels, retail, entertainment units. Annual absorption of office space in India crossed 42 mn sq ft in 2017.
  • Open

    Atal Mission for Rejuvenation and Urban…

    The mission of AMRUT is to provide basic services such as wa…

  • Open

    HRIDAY (Heritage City Development and Au…

    HRIDAY aims to preserve and revitalise the soul of the herit…

  • Open

    Industrial corridors

    These corridors are planned with a strategic focus on inclus…

  • Open

    Model Guidelines for Development and Reg…

    The Ministry of Housing and Urban Affairs released model gui…

  • Open

    Modified Industrial Infrastructure Upgra…

    To enhance competitiveness of industry by providing quality…

  • Open

    Pradhan Mantri Awas Yojana (Affordable H…

    The aim is to support the construction of houses of upto 30…

  • Open

    Real Estate (Regulation and Development)…

    An Act to establish the Real Estate Regulatory Authority for…

  • Open

    Smart City Mission

    The objective is to promote cities that provide basic infras…

  • Open

    Swachh Bharat Mission

    Swachh Bharat Mission was launched to accelerate the efforts…

Investible Projects

Investment Opportunities in Construction

  • Projects

    1042

  • Opportunity

    $34.49 bn

  • Promoters

    170

  • District

    183

  • Private Projects

    19

  • Govt. Projects

    1023

open

$4.23 bn

Development of Palava Industrial Township in Maharashtra

State (s) Maharashtra
open

$1.81 bn

Construction of EWS, LIG and MIG houses and development of infrastructure work - PMAY Package C [Jabalpur]

State (s) Madhya Pradesh
open

$1.78 bn

Construction of EWS, LIG and MIG houses and development of infrastructure work - PMAY Package A [Jabalpur]

State (s) Madhya Pradesh
open

$1.76 bn

Construction of EWS, LIG and MIG houses and development of infrastructure work - PMAY Package C [Jabalpur]

State (s) Madhya Pradesh

Major Investors

Data on Map

  • Infrastructure in India
  • Construction business in India

Latest in Construction

FAQ

Frequently
Asked Questions

  • How many industrial corridors are being planned in India?

    Industrial corridor programme envisages creation of world class infrastructure, connectivity and new greenfield smart cities as global manufacturing hubs which will create large employment opportunities. Five industrial corridor projects across India have been identified, planned and launched. 

    For more information, click here.

  • What is the harmonised Master List of Infrastructure Sub-sectors as notified by Government of India?

    Please refer to the harmonised master list of sub-sectors at this link.

  • What is 'Smart Cities' program of the Indian government?

    Government of India has launched a new urban development mission. Target is to develop 500 cities, which include cities with a population of more than 100,000 and some cities of religious and tourist importance. These cities will be supported and encouraged to harness private capital and expertise through Public Private Partnerships (PPPs), to holster their infrastructure and services in the next 10 years. The strategic components of Area-based development in the Smart Cities Mission are:
    1) City improvement (retrofitting).
    2) City renewal (redevelopment).
    3) City extension (greenfield development).
    4) Pan-city initiative in which Smart Solutions are applied covering larger parts of the city.
    Please refer to these links for further details, link.

  • What are the functions and duties of promoters under Real Estate (Regulation & Development) Act, 2016?

    Functions and duties of promoters are clearly defined under RERA act:
    1) The Act mandates that a promoter shall deposit 70% of the amount realised from the allottees, from time to time, in a separate account to be maintained in a scheduled bank. This is intended to cover the cost of construction and the land cost and the amount deposited shall be used only for the concerned project.
    2) Withdrawal can only be made after it is certified by an engineer, an architect and chartered accountant in practice that the withdrawal is in proportion to the percentage of completion of the project.
    3) The promoter is also required to get his accounts audited within six months after the end of every financial year by a practicing chartered accountant.
    He will also have to get verified during the audit that:
    i) The amounts collected for a particular project have been utilised for the project
    ii) The withdrawal has been in compliance with the proportion to the percentage of completion of the project.

    Obligations of promoter are clearly defined under this act.
    Restriction on transfer and assignment: The promoter shall not transfer or assign his majority rights and liabilities in respect of a project to a third party without obtaining prior written consent from two-thirds of the allottees, except the promoter and without the prior written approval of the Regulatory Authority.
    Further details, please refer the link.

  • How can we get our propriety building technology for affordable housing, certified and approved by government?

    Building Materials and Technology Promotion Council does evaluation, validation and certification of innovative building materials and construction technologies under performance appraisal certification scheme. For details please refer to link.

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