Construction in India - Key Trends and Opportunities to 2024

Construction in India - Key Trends and Opportunities to 2024

Summary

Prior to the Coronavirus (COVID-19) crisis, the pace of expansion in India’s construction industry was already slowing, as a result of weak economic conditions, coupled with weakness in the residential construction sector amid rising unemployment, a liquidity crunch and a decline in new residential projects launched across major cities. To provide support, in November 2019, the government announced an INR250 billion (US$3.6 billion) bailout fund to restart construction works on 1,600 stalled real estate projects. However, the COVID-19 outbreak and the resultant disruption in the economy has further exacerbated the challenges faced by the construction industry.

The nationwide lockdown restrictions imposed in late March have heavily weighed on the construction industry, as activities came to a standstill during most of April and May 2020. Consequently, the industry’s value-add fell by 50.3% year-on-year in real terms in the second quarter of 2020 (the latest data available at the time of writing), falling from a contraction of 2.2% year-on-year in Q1 2020, according to the Ministry of Statistics and Program Implementation (MOSPI). Although the situation will improve in the second half of the year, GlobalData expects the industry to contract by 14.9% in real terms this year. This reflects the slowdown in construction of various projects in the infrastructure, energy and utilities and residential construction sectors, coupled with the unavailability of the construction workforce amid rising COVID-19 cases in the country, and a cut in capital expenditure by the public and private sectors.

Assuming the COVID-19 disruption dissipates in 2021, the Indian construction industry is forecasted to recover to an annual average growth of 7.4% between 2021-2024, supported by the government’s focus on boosting infrastructure investments to revive the economy. In August 2020, the Prime Minister announced that INR111 trillion (US$1.5 trillion) will be invested on 7,000 projects across various sectors during FY2020-2025, which will enable the faster revival of the economy and aid in boosting employment. The industry’s growth will also be supported by the government’s focus on boosting local manufacturing sector to become self-reliant and reduce dependency on imports. In addition, the government’s targets to construct 10 million affordable houses by 2022 and increase the share of renewable energy in total installed power capacity to 60% by 2030 will support the industry’s growth over the medium and long term

This report provides detailed market analysis, information and insights into the Indian construction industry, including -

  • The Indian construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Indian construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline
Scope

This report provides a comprehensive analysis of the construction industry in India. It provides -
  • Historical (2015-2019) and forecast (2020-2024) valuations of the construction industry in India, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
  • Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using GlobalData's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.


1. Executive Summary
2. Construction Industry: At-a-Glance
3. Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 COVID-19 Status
4. Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5. Key Industry Participants
5.1 Contractors
5.2 Consultants
6. Construction Market Data
7. Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 GlobalData Construction
List of Tables
Table 1: Construction Industry Key Data
Table 2: India, Key Economic Indicators
Table 3: India, Commercial Construction Output by Project Type (Real % Change), 2015-2024
Table 4: India, Top Commercial Construction Projects by Value
Table 5: India, Industrial Construction Output by Project Type (Real % Change), 2015-2024
Table 6: India, Top Industrial Construction Projects by Value
Table 7: India, Infrastructure Construction Output by Project Type (Real % Change), 2015-2024
Table 8: India, Top Infrastructure Construction Projects by Value
Table 9: India, Energy and Utilities Construction Output by Project Type (Real % Change), 2015-2024
Table 10: India, Top Energy and Utilities Construction Projects by Value
Table 11: India, Institutional Construction Output by Project Type (Real % Change), 2015-2024
Table 12: India, Top Institutional Construction Projects by Value
Table 13: India, Residential Construction Output by Project Type (Real % Change), 2015-2024
Table 14: India, Top Residential Construction Projects by Value
Table 15: India, Key Contractors
Table 16: India, Key Consultants
Table 17: India, Construction Output Value (Real, US$ Billion)
Table 18: India, Construction Output Value (Nominal, INR Billion)
Table 19: GlobalData Construction Market Definitions
List of Figures
Figure 1: South and South-East Asia, Construction Output (Real % Change), 2020
Figure 2: India, Construction Projects Pipeline by Sector (US$ Billion)
Figure 3: India, COVID-19 Confirmed Cases
Figure 4: India, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2015-2024
Figure 5: India, Construction Output Value, by Sector (Real, US$ Million), 2015-2024
Figure 6: India, Construction Value-Add (INR Billion, 2011-2012 Constant Prices)
Figure 7: India, Gross Fixed Capital Formation (INR Billion, 2011-2012 Constant Prices)
Figure 8: India, Construction Projects Momentum Index
Figure 9: India, Commercial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 10: India, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 11: India, Foreign Tourist Arrivals (% Change YOY)
Figure 12: India, Industrial Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 13: India, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 14: India, Manufacturing Value-Add (INR Billion, 2011-2012 Constant Prices)
Figure 15: India, Industrial and Manufacturing Production Index (at 2011-2012 Base Prices, % Change YOY)
Figure 16: India, Total Export Value (INR Billion)
Figure 17: India, Infrastructure Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 18: India, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 19: India, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 20: India, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 21: India, Institutional Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 22: India, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 23: India, Residential Construction Output by Project Type (Real, US$ Million), 2015-2024
Figure 24: India, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
Figure 25: India, Housing Sales and New Home Launches (In Thousands)
Figure 26: India, Housing Price Index (2010-2011 Base Prices, % Change YOY)
Figure 27: India, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 28: India, Headquarters of Key Consultants (% of Total Project Pipeline)

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