Infrastructure & Construction sector

India’s infrastructure and construction sector plays a pivotal role in the nation’s economic development, contributing approximately 9% to the Gross Domestic Product (GDP) and serving as the second-largest employer, with around 71 million individuals engaged in various projects.

/ Overview of India's Infrastructure & Construction Sector

With rapid urbanization and industrial expansion, India has committed significant investment towards infrastructure development. The National Infrastructure Pipeline (NIP) has earmarked $1.4 trillion for projects across roads, railways, energy, and urban development over the next five years. Additionally, the Production-Linked Incentive (PLI) scheme and Make in India initiatives are set to drive long-term industrial growth.

40%+

Urbanization & Population Growth

$1.4 tn

Market Size

$26.61 bn

FDI (till Jan 2025)

Economic Growth Rate

/ Growth Drivers

Urbanization & Population Growth: Over 40% of India’s population will reside in urban areas by 2030, increasing demand for smart cities and commercial spaces

Government Policies: Increased budget allocation of $133.9 billion for infrastructure in the 2024-25 interim budget.

Technological Advancements: Use of Building Information Modelling (BIM), prefabricated construction, and automation to improve efficiency.

Renewable Energy Focus: 24% of the NIP budget allocated to clean energy projects, driving demand for sustainable construction

/ Key Investment Opportunities

Urban Infrastructure

∕ 100 Smart Cities initiative focusing on sustainable urban development
∕ Affordable Housing under Pradhan Mantri Awaas Yojna (PMAY-U): $2.5 billion investment for 1.56 million new homes
∕ Upgrades to urban water supply, sewage treatment, and sanitation facilities
∕ Demand for green building solutions and energy-efficient materials

Industrial & Commercial Construction

∕ 11 Industrial Corridors planned across India to boost manufacturing and exports
∕ Warehousing & Logistics: India’s institutional real estate investment in warehousing has surged, with total stock expected to reach 500 million sq. ft. by 2025
∕ Foreign investments are encouraged in commercial real estate, retail, and hospitality infrastructure

Transportation & Logistics

∕ Highways & Roads: India has the world’s second-largest road network at 67 million kilometers, with major expansions planned under the Bharatmala Project.

∕ Railways: Indian Railways has a record planned capital expenditure of $29.5 billion for modernization, with 100% FDI allowed in the sector

∕ Seaports: The Sagarmala Project aims for $82 billion investment across 574 port-related projects by 2035

∕ Airports: Government focus on regional airport connectivity and public-private partnerships for new airports

/ How We Can Help

Foreign businesses seeking to enter or expand in India’s infrastructure and construction market can benefit from:

Market Entry & Feasibility Analysis

Localization Strategies & Regulatory Compliance

Partner Identification & Joint Ventures

Supply Chain & Logistics Optimization

/ Market Entry & Feasibility Analysis

Evaluates market potential, competition, regulations, and entry strategies for businesses. Ensures viability, minimizes risks, and identifies growth opportunities for successful expansion into the Indian market.

/ Localization Strategies & Regulatory Compliance

Localization strategies in India involve adapting products, services, and operations to local market needs, while regulatory compliance ensures adherence to laws, including taxation, labor, environmental, and industry-specific regulations.

/ Partner Identification & Joint Ventures

Identifying suitable partners for market entry, growth, or technology collaboration, facilitating joint ventures to leverage local expertise, regulatory compliance, and strategic expansion in India's dynamic business landscape.

/ Supply Chain & Logistics Optimization

Supply Chain & Logistics Optimization in India enhances efficiency through digitalization, automation, and AI-driven solutions, reducing costs, improving delivery speed, and streamlining operations across manufacturing, warehousing, and distribution networks.

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/ Ready to grow in India?

Our team of friendly experts loves nothing more than helping businesses like yours get off to a flying start in India.