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)
9%
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:
NEWS & EVENTS
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