India Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q1 2025)

India Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q1 2025)

Summary

The construction industry in India is expected to expand by 6.2% in real terms in 2025, supported by rising investments in commercial, industrial, and transport infrastructure projects, coupled with a rise in export activities. The industry’s growth in 2025 will also be supported by investments as part of the latest financial year (FY) 2025-26 Budget, that was announced in February 2025. The budget outlines an expenditure of INR50.7 trillion ($605.1 billion) in FY2025-26 - marking a 7.4% growth compared to the expenditure of INR47.2 trillion ($563.5 billion) in the revised FY2024-25 Budget. The latest Budget includes capital expenditure of INR11.2 trillion ($133.9 billion) - marking a 10% growth compared with the revised FY2024-25 capital expenditure of INR10.2 trillion ($121.7 billion).

GlobalData expects the Indian construction industry to record an average annual growth rate of 5.5% between 2026 and 2029, supported by investments in energy, transport, manufacturing, research, and residential projects. As part of the latest budget, the government estimated that India will need to produce at least 100GW of nuclear energy by 2047 to meet its energy transition targets. To achieve this goal, the government will make amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act which will enable further Public Private Partnerships (PPP). In addition, the government will invest INR200 billion ($2.4 billion) to set up a Nuclear Energy Mission for research and development of Small Modular Reactors (SMR). In February 2025, the Indian power generation company, National Thermal Power Corporation (NTPC), announced that it is planning to invest INR5.2 trillion ($62 billion) to expand the country’s nuclear capacity to 30GW by 2044. The Ministry of Ports, Shipping, and Waterways (MoPSW) has announced an investment of INR500 billion ($6 billion) in January 2025, aimed at improving the port infrastructure along national waterways in the next five years

GlobalData’s Construction in India - Key Trends and Opportunities to 2029 (Q1 2025) 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 (2020-2024) and forecast (2025-2029) 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 our 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 business strategies using GlobalData's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors