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India Construction Industry Report 2023: Growth in 2023 will be Supported by Government Investment to Complete Major Infrastructure Projects Ahead of the 2024 Elections

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Dublin, May 03, 2023 (GLOBE NEWSWIRE) -- The "India Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027" report has been added to's offering.

Growth forecasts has been revised down for the Indian construction industry in 2023 - with the industry now expected to expand by 5% in real terms, compared to an earlier estimate of a 5.2% growth.

This downward revision is attributed to the decrease in foreign direct investment (FDI) owing to slowing global economic growth. According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDI, which includes equity inflows, re-invested earnings and other capital inflows into India contracted by 14.5% to INR2.9 trillion ($36.75 billion) during the April-December period of the on-going financial year 2022-2023 (FY23), compared to INR3.4 trillion ($42.9 billion) during the same period of FY22.

However, the construction industry's growth in 2023 will be supported by government investment to complete major infrastructure projects ahead of the 2024 elections. According to the Ministry of Statistics and Programme Implementation (MoSPI), the construction industry's value add grew by 8.4% YoY in Q4 2022 - preceded by a Y-o-Y growth of 5.8% in Q3 and 16.2% in Q2 2022. In 2022, the total gross fixed capital formation (GFCF) rose by 14.8%.

Over the remainder of the forecast period, between 2024 and 2027, the Indian construction industry is expected to register an average annual growth of 6.3%, supported by investment in transport, electricity and housing projects. As part of the INR104.2 trillion ($1.3 trillion) Pradhan Mantri Gati Shakti Master Plan, announced in October 2021, India's infrastructure will be developed, boosting economic growth over the coming 25 years.


Moreover, the industry's output will be supported by investment in the renewable energy sector, in line with the government's aim to increase renewable energy capacity from 175GW in 2022 to 500GW by 2030; with an estimated investment of INR20-22 trillion ($249.4-274.4 billion).

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


  • 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

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook
4.1 All Construction

  • Outlook

  • Latest news and developments

  • Construction Projects Momentum Index

4.2 Commercial Construction

  • Outlook

  • Project analytics

  • Latest news and developments

4.3 Industrial Construction

  • Outlook

  • Project analytics

  • Latest news and developments

4.4 Infrastructure Construction

  • Outlook

  • Project analytics

  • Latest news and developments

4.5 Energy and Utilities Construction

  • Outlook

  • Project analytics

  • Latest news and developments

4.6 Institutional Construction

  • Outlook

  • Project analytics

  • Latest news and developments

4.7 Residential Construction

  • Outlook

  • Project analytics

  • Latest news and developments

5 Key Industry Participants
5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit

Source: GlobalData

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