India Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (Q1 2026)
Description
India Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (Q1 2026)
Summary
GlobalData expects the construction industry in India to expand in real terms by 6.4% in 2026, supported by investments in transport infrastructure and energy projects, coupled with investments as part of the latest financial year (FY) 2026-27 (April 2026 to March 2027) budget. In February 2026, the Indian Finance Minister Nirmala Sitharaman presented the country’s FY2026-27 Budget in Parliament, involving a total expenditure of INR53.5 trillion ($596.7 billion) in FY2026-27 -equivalent to 13.6% of the GDP; in comparison, this expenditure is 7.7% higher than the revised estimate (RE) of INR587.5 trillion ($6.6 trillion) in the FY2025-26 Budget. The FY2026-27 Budget includes a revenue expenditure of INR41.3 trillion ($460.6 billion) and a capital expenditure of INR12.2 trillion ($136.1 billion). The capital expenditure allocation in FY2026-27 is equivalent to 3.1% of the GDP and marks an increase of 11.5% compared to the expenditure of INR10.9 trillion ($121.6 billion) in the RE FY2025-26 Budget. According to the Ministry of Commerce and Industry (MoCI), the total gross fixed capital formation rose by 7.8% year-on-year (YoY) in Q4 2025, preceded by Y-o-Y growth of 8.4% in Q3 and 4.9% in Q2 2025.According to the Reserve Bank of India (RBI), the industrial production index for infrastructure/construction goods grew by 9.1% YoY in 2025, following an annual growth of 6.5% in 2024.
The Indian construction industry is predicted to record an average annual growth rate of 6% between 2027 and 2030, supported by investments in manufacturing, infrastructure and energy projects, coupled with the government’s aim to construct 500GW of non-fossil fuel electricity generation capacity by 2030. Growth will also be supported by the government’s plan to add 17,000km of access-controlled expressways by 2033. Under the new plan, the government aims to construct a new high-speed road network worth INR11.2 trillion ($124.9 billion) by 2033. In January 2026, the government announced that it created a three-year Public private partnership (PPP) project pipeline involving 852 projects worth INR17 trillion ($189.6 billion). Furthermore, in November 2025, the Indian government approved INR200 billion ($2.2 billion) worth of highway projects for Gujarat under the National Highways Authority of India (NHAI). Key stretches such as Ahmedabad to Mumbai, Rajkot to Gondal to Jetpur, and Ahmedabad to Udaipur are being prioritized for expedited upgrades, widening, and expansion. The state’s highways feature four and six-lane carriageways and advanced logistics infrastructure, with ongoing upgrades including expressway construction, highway widening, resurfacing, and the deployment of smart traffic systems to ensure efficient freight movement, tourism, and rural accessibility
GlobalData’s Construction in India - Key trends and Opportunities to 2030 (Q1 2026) report provides detailed market analysis, information, and insights into the Indian construction industry, including -
This report provides a comprehensive analysis of the construction industry in India. It provides -
Summary
GlobalData expects the construction industry in India to expand in real terms by 6.4% in 2026, supported by investments in transport infrastructure and energy projects, coupled with investments as part of the latest financial year (FY) 2026-27 (April 2026 to March 2027) budget. In February 2026, the Indian Finance Minister Nirmala Sitharaman presented the country’s FY2026-27 Budget in Parliament, involving a total expenditure of INR53.5 trillion ($596.7 billion) in FY2026-27 -equivalent to 13.6% of the GDP; in comparison, this expenditure is 7.7% higher than the revised estimate (RE) of INR587.5 trillion ($6.6 trillion) in the FY2025-26 Budget. The FY2026-27 Budget includes a revenue expenditure of INR41.3 trillion ($460.6 billion) and a capital expenditure of INR12.2 trillion ($136.1 billion). The capital expenditure allocation in FY2026-27 is equivalent to 3.1% of the GDP and marks an increase of 11.5% compared to the expenditure of INR10.9 trillion ($121.6 billion) in the RE FY2025-26 Budget. According to the Ministry of Commerce and Industry (MoCI), the total gross fixed capital formation rose by 7.8% year-on-year (YoY) in Q4 2025, preceded by Y-o-Y growth of 8.4% in Q3 and 4.9% in Q2 2025.According to the Reserve Bank of India (RBI), the industrial production index for infrastructure/construction goods grew by 9.1% YoY in 2025, following an annual growth of 6.5% in 2024.
The Indian construction industry is predicted to record an average annual growth rate of 6% between 2027 and 2030, supported by investments in manufacturing, infrastructure and energy projects, coupled with the government’s aim to construct 500GW of non-fossil fuel electricity generation capacity by 2030. Growth will also be supported by the government’s plan to add 17,000km of access-controlled expressways by 2033. Under the new plan, the government aims to construct a new high-speed road network worth INR11.2 trillion ($124.9 billion) by 2033. In January 2026, the government announced that it created a three-year Public private partnership (PPP) project pipeline involving 852 projects worth INR17 trillion ($189.6 billion). Furthermore, in November 2025, the Indian government approved INR200 billion ($2.2 billion) worth of highway projects for Gujarat under the National Highways Authority of India (NHAI). Key stretches such as Ahmedabad to Mumbai, Rajkot to Gondal to Jetpur, and Ahmedabad to Udaipur are being prioritized for expedited upgrades, widening, and expansion. The state’s highways feature four and six-lane carriageways and advanced logistics infrastructure, with ongoing upgrades including expressway construction, highway widening, resurfacing, and the deployment of smart traffic systems to ensure efficient freight movement, tourism, and rural accessibility
GlobalData’s Construction in India - Key trends and Opportunities to 2030 (Q1 2026) 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.
This report provides a comprehensive analysis of the construction industry in India. It provides -
- Historical (2021-2025) and forecast (2026-2030) 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
- 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
Table of Contents
66 Pages
- 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 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 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 CRI Methodology
- 8 About GlobalData
- 9 Contact Us
- 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), 2021–30
- Table 4: India, Top Commercial Construction Projects by Value
- Table 5: India, Industrial Construction Output by Project Type (Real % Change), 2021–30
- Table 6: India, Top Industrial Construction Projects by Value
- Table 7: India, Infrastructure Construction Output by Project Type (Real % Change), 2021–30
- Table 8: India, Top Infrastructure Construction Projects by Value
- Table 9: India, Energy and Utilities Construction Output by Project Type (Real % Change), 2021–30
- Table 10: India, Top Energy and Utilities Construction Projects by Value
- Table 11: India, Institutional Construction Output by Project Type (Real % Change), 2021–30
- Table 12: India, Top Institutional Construction Projects by Value
- Table 13: India, Residential Construction Output by Project Type (Real % Change), 2021–30
- 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, $ Million)
- Table 18: India Construction Output Value (Nominal, INR Billion)
- Table 19: GlobalData Construction Market Definitions
- Table 20: GlobalData Construction Market Definitions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: South Asia, Construction Output (Real % Change), 2024–30
- Figure 2: India, Construction Output by Sector (Real % Change), 2024–26 and 2027–30
- Figure 3: India, Risk Summary
- Figure 4: India, Risk Regional Comparison
- Figure 5: India, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2021–30
- Figure 6: India, Construction Output Value, by Sector (Real, $ Million), 2021–30
- Figure 7: India, Construction Value-Add (Constant 2022–23 Prices, INR Billion)
- Figure 8: India, Gross Fixed Capital Formation (Constant 2022–23 Prices, INR Billion)
- Figure 9: India, Cement Production, In Million Tonnes (MT)
- Figure 10: India, Industrial Production Index for Infrastructure/ Construction Goods (2011–12=100)
- Figure 11: India, Construction Projects Momentum Index
- Figure 12: South Asia, Construction Projects Momentum Index
- Figure 13: India, Commercial Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 14: India, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 15: India, Trade, Hotels, Transport, and Communication Sector Value-Add (Constant 2022–23 Prices, INR Billion)
- Figure 16: India, Industrial Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 17: India, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 18: India, Manufacturing Value-Add (Constant 2022–23 Prices, INR Billion)
- Figure 19: India, Industrial and Manufacturing Production Index (2011–12 Base Prices)
- Figure 20: India, Total Exports (INR Billion)
- Figure 21: India, Infrastructure Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 22: India, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 23: India, Total Road Network Widened, Upgraded and Strengthened, in Km
- Figure 24: India, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 25: India, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 26: India, Electricity, Gas and Water Services Value-Add (Constant 2022-2023 Prices, INR Billion)
- Figure 27: India, Total Power Generated, In Billion units
- Figure 28: India, Installed Power Capacity of Power Stations, in MW
- Figure 29: India, Institutional Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 30: India, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 31: India, Public Administration, Defense and Other Services Value-Add (Constant 2022–23 Prices, INR Billion)
- Figure 32: India, Residential Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 33: India, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 34: India, Financial, Real Estate, and Professional Services Value-Add (Constant 2022–23 Prices, INR Billion)
- Figure 35: India, Housing Price Index (2022-23=100)
- Figure 36: India, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 37: India, Headquarters of Key Consultants (% of Total Project Pipeline)
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