India Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

India Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

GlobalData has revised up its forecast of the growth of the Indian construction industry in 2023 - with the industry now expected to expand by 6% in real terms this year, compared to an earlier estimate of a 5% growth. This upward revision is attributed to robust government investment to complete major infrastructure projects ahead of the 2024 elections. According to the Ministry of Statistics and Program Implementation (MoSPI), the construction industry’s value add grew by 10.4% year on year (YoY) in Q1 2023, preceded by Y-o-Y growth of 8.3% in Q4 and 5.7% in Q3 2022. The industry’s growth will also be supported by an easing of inflation in recent months. According to the Reserve Bank of India (RBI), India’s Consumer Price Index (CPI) reached a two-year low of 4.3% YoY in May 2023 - within RBI’s inflation rate target of between 2-6% for the third consecutive month. The industry’s output will also be supported by the 2023-24 Budget expenditure of INR45 trillion ($561.2 billion) - a 7.5% increase in comparison to the revised estimate for 2022-23. Among the major allocations, the Ministry of Road Transport and Highways received INR2.7 trillion ($33.7 billion), the Ministry of Railways received INR2.4 trillion ($30.1 billion) and the Ministry of Home Affairs received INR2 trillion ($24.4 billion).

Over the remainder of the forecast period, the Indian construction industry is expected to register an average annual growth of 6.4% between 2024 and 2027, supported by investment in the construction of transport, electricity and housing projects. The government’s allocation of INR790 billion ($9.9 billion) to the Ministry of Housing and Urban Affairs (MoHUA) under the 2023-24 Budget for the continuation of the Pradhan Mantri Awas Yojana-Urban (PMAY-U) - “Housing for All” Mission will support growth over the forecast period. In line with this mission, in March 2023, the Prime Minister launched the INR3.6 billion ($437 million) Pradhan Mantri Gharkul Yojana Housing for All 2023 Program, that involves the construction of 1,000,000 housing units in Maharashtra by the end of Q1 2027. In addition, the Ministry of Housing and Urban Affairs announced in June 2023, that it will extend the Smart Cities Mission (SCM) by a year from June 2023 until June 2024 for the completion of the pending construction works.

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 (2018-2022) and forecast (2023-2027) 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.