India Construction Market

India Construction Market

India Construction Market by Type (Renovation, and New Construction), by Sector (Real Estate and Others), by Construction Method (Traditional Construction, Prefabricated/Modular Construction, 3D Printed Construction, Green/Sustainable Construction), and by Type of Contractor (Large Contractor, Medium Contractor and Small Contractor) – Country Industry Trends and Forecast, 2025–2030

Industry: Construction & Manufacturing | Publish Date: 21-Jun-2025 | No of Pages: 153 | No. of Tables: 117 | No. of Figures: 62 | Format: PDF | Report Code : CM2218

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India Construction Industry Overview

The India Construction Market size was valued at USD 1.04 trillion in 2024 and is projected to grow to USD 1.21 trillion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 2.13 trillion by 2030, with a CAGR of 12.1% from 2025 to 2030.

This market is expanding rapidly, supported by strong government-backed initiatives such as the National Investment Pipeline and major infrastructure projects like the Mumbai–Ahmedabad High-Speed Rail and Chennai–Bengaluru Expressway. 

The sector is further propelled by a growing emphasis on sustainable and smart infrastructure, with substantial investments in metro rail expansion, affordable green housing, and renewable energy. 

While regulatory complexities and bureaucratic inefficiencies pose challenges by delaying projects and increasing costs, the integration of digital technologies like BIM, AI, and IoT is creating new growth opportunities through enhanced design precision, collaboration, and operational efficiency.

Government-Backed Initiatives Drive Growth in the Market

The construction market in India is witnessing substantial growth, primarily propelled by government-backed initiatives aimed at infrastructure development and urbanization. The National Investment Pipeline (NIP) allocates a significant investment budget of USD 1.4 trillion for infrastructure projects, with substantial allocations for renewable energy, roads and highways, urban infrastructure, and railways.

This strategic investment focus is expected to catalyse the expansion of the infrastructure industry, with projections indicating a market size of USD 1.4 trillion by 2025. The growing demand for residential and urban infrastructure projects, fueled by population growth and urbanization trends, further reinforces the sector's growth trajectory.

 

Significant Contribution of the Construction Sector to India's Economy Boosts the Market Growth

The construction market in India holds a pivotal position in the country's economy, contributing approximately 8% to the GDP and boasting a valuation of around USD 126 billion. Robust investments in infrastructure development led to an impressive annual growth rate of 30% in the Indian infrastructure equipment sector. Moreover, as India's population continues to rise, there is a projected surge in demand for residential and commercial infrastructure, driving further innovation in infrastructure techniques and materials. The substantial population growth in India, compared to other Asian countries such as Japan and South Korea, underscores the critical role of the infrastructure sector in meeting the evolving needs of the population and driving economic growth.

 

Regulatory Challenges Impede Infrastructure Market Growth

In the construction market, navigating regulatory complexities presents significant barriers to market growth. Infrastructure projects often encounter hurdles due to the intricate network of government regulations and permitting procedures. Infrastructure initiatives require obtaining numerous permits and approvals from governmental bodies at various levels, including local, regional, and national.

These mandates involve strict adherence to zoning regulations, environmental assessments, building codes, safety standards, and other regulatory requirements. The protracted process of acquiring permits, bureaucratic inefficiencies, and regulatory disparities among jurisdictions can significantly prolong project timelines and escalate costs. Moreover, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and deter potential investments.

Integration of Digitalization and BIM Presents Lucrative Opportunity for Market Expansion

The construction market is undergoing a significant transformation with the integration of digitalization and the adoption of Building Information Modeling (BIM). Advanced technologies such as BIM are enhancing efficiency, accuracy, and collaboration across diverse projects. BIM, a sophisticated 3D modeling tool, empowers stakeholders to generate and manage digital representations of structures and infrastructure, facilitating improved coordination and communication among project teams.

For instance, in September 2022, the National Institute of Building Sciences (NIBS) initiated the India National Building Information Management (BIM) Program. This initiative aims to revolutionize the infrastructure sector by achieving unprecedented levels of industrial efficiency through digitalization. By addressing the inadequacy of digitalization within the India infrastructure sector, the program seeks to streamline lifecycle work processes, enhancing efficiency, cost-effectiveness, resilience, and safety for infrastructure and maintenance projects.

 

Competitive Landscape  

The key players operating in the India construction industry include Larsen & Toubro Limited, Tata Projects Limited, Reliance Infrastructure Limited, Shapoorji Pallonji Engineering & Construction, Hindustan Construction Company Limited, GMR Group, Afcons Infrastructure Limited, NCC Limited, Gammon India Ltd, Simplex Infrastructures Ltd, Mahindra Lifespace Developers Ltd, Man Infra Construction Limited, Adani Group, Sunteck Realty, PSP Projects Limited, and others.

India Construction Market Key Segment

By Type                

  • Renovation            

  • New Construction            

By Sector                

  • Real Estate            

    • Residential        

      • Affordable    

      • Luxury    

    • Commercial        

      • Retail Buildings    

      • Office Buildings    

      • Hospitality    

      • Healthcare Facilities    

      • Educational Institutes    

      • Entertainment Ventures    

  • Infrastructure    
    • Transportation    

      • Airport

      • Port

      • Rail

      • Road

    • Water and Wastewater    

    • Energy    

    • Telecommunication    

  • Industrial        
    • Manufacturing Plant    

    • Warehouses    

    • Power Plants    

    • Oil Refineries    

    • Chemical Plants    

By Construction Method                

  • Traditional Construction            

  • Prefabricated/Modular Construction            

  • 3D Printed Construction            

  • Green/Sustainable Construction            

By Type of Contractor                

  • Large Contractor            

  • Medium Contractor            

  • Small Contractor

Key Players

  • Larsen & Toubro Limited

  • Tata Projects Limited

  • Reliance Infrastructure Limited

  • Shapoorji Pallonji Engineering & Construction

  • Hindustan Construction Company Limited

  • GMR Group

  • Afcons Infrastructure Limited

  • NCC Limited

  • Gammon India Ltd

  • Simplex Infrastructures Ltd

  • Mahindra Lifespace Developers Ltd

  • Man Infra Construction Limited

  • Adani Group

  • Sunteck Realty

  • PSP Projects Limited

REPORT SCOPE AND SEGMENTATION:

Parameters

Details

Market Size in 2024

USD 1.04 Trillion

Revenue Forecast in 2030

USD 2.13 Trillion

Growth Rate

CAGR of 12.1% from 2025 to 2030

Analysis Period

2024–2030

Base Year Considered

2024

Forecast Period

2025–2030

Market Size Estimation

Trillion (USD)

Growth Factors

  • Government-Backed Initiatives Drive the India Construction Market Growth
  • Surge in Sustainable and Smart Infrastructure Boosts India Construction Market Demand

Companies Profiled

15

Market Share

Available for 10 companies

Customization Scope

Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.

Pricing and Purchase Options

Avail customized purchase options to meet your exact research needs.

India Construction Market Revenue by 2030 (Billion USD) India Construction Market Segmentation India Construction Market Major Regions

Frequently Asked Questions

Construction firms are adopting digital tools like Building Information Modeling (BIM) to enhance project planning and execution efficiency.

According to Next Move Strategy Consulting, the size of the India construction market was estimated at USD 1.04 trillion in 2024.

There's a growing emphasis on sustainable building practices, including the use of eco-friendly materials and energy-efficient designs, to align with environmental goals.

Increasing urbanization is driving demand for residential and commercial developments, leading to innovative approaches in urban planning and construction.

According to Next Move Strategy Consulting, the size of the India construction market is estimated to be at USD 2.13 trillion in 2030.

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