INDIAN CONSTRUCTION INDUSTRY AT A GLANCE IN 2022 - 2023 The Indian construction Industry in India is expected to reach $1.4 Tn by 2025. The construction market is expected to reach US$ 1.42 trillion by 2027, expanding at a CAGR of 17.26% during the 2022-2027 forecast period.
It has been estimated that by 2030, more than 40% of the population is expected to live in urban India , creating a demand for 25 Mn additional mid-end and affordable units.
The Indian Government under the Union budget 2023 allocated about INR 10 Lakh Crore for the construction sector.
The outlay for PM Awas Yojana is being enhanced by 66 % to over 79,000 cr.
Growth Drivers for the construction Industry• India is on a mission to develop 100 smart cities, thus improving the quality of life by modern technology.
• Several Industrial corridors are being planned to improve industrialization.
• Real estate demand is set to increase by 15-18 Mn sq. ft. by 2025 across major cities thanks to growth of the Information technology sector.
• Demand for warehousing stock from 287 mn sq ft (2021) to 500 mn sq ft (2030) in the top 8 Tier1 cities.
Industry InvestmentsFDI in construction development (townships, housing, built-up infrastructure and construction development projects) and construction (infrastructure) activity sectors stood at US$ 26.23 billion and US$ 28.95 billion, respectively, in 2022.
India is expected to become the third-largest construction market globally by this year . India plans to spend US$ 1.4 trillion on infrastructure projects through the National Infrastructure Pipeline (NIP), from 2019 to 2023, to ensure sustainable development in the country.