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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.
Infographic - Doing business in India Infrastructure & Construction sector
Overview of India's Infrastructure & Construction Sector India

/ 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

a man in a blue circle with a building behind him

/ 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

Transportation & Logistics in India

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

Urban Infrastructure in India

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

Industrial & Commercial Construction in India

/ How We Can Help

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

Build - Hire the right people & build your local presence
Buy - M&A & integration
Advice - Strategy and Operational Efficiency

NEWS & EVENTS

/ Ready to grow in India?

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