The analyst expects the construction industry in India to expand in real terms by 6.4% in 2026, supported by investments in transport infrastructure and energy projects, coupled with investments as part of the latest financial year (FY) 2026-27 (April 2026 to March 2027) budget. In February 2026, the Indian Finance Minister Nirmala Sitharaman presented the country’s FY2026-27 Budget in Parliament, involving a total expenditure of INR53.5 trillion ($596.7 billion) in FY2026-27 -equivalent to 13.6% of the GDP; in comparison, this expenditure is 7.7% higher than the revised estimate (RE) of INR587.5 trillion ($6.6 trillion) in the FY2025-26 Budget. The FY2026-27 Budget includes a revenue expenditure of INR41.3 trillion ($460.6 billion) and a capital expenditure of INR12.2 trillion ($136.1 billion). The capital expenditure allocation in FY2026-27 is equivalent to 3.1% of the GDP and marks an increase of 11.5% compared to the expenditure of INR10.9 trillion ($121.6 billion) in the RE FY2025-26 Budget. According to the Ministry of Commerce and Industry (MoCI), the total gross fixed capital formation rose by 7.8% year-on-year (YoY) in Q4 2025, preceded by Y-o-Y growth of 8.4% in Q3 and 4.9% in Q2 2025.According to the Reserve Bank of India (RBI), the industrial production index for infrastructure/construction goods grew by 9.1% YoY in 2025, following an annual growth of 6.5% in 2024.
The Indian construction industry is predicted to record an average annual growth rate of 6% between 2027 and 2030, supported by investments in manufacturing, infrastructure and energy projects, coupled with the government’s aim to construct 500GW of non-fossil fuel electricity generation capacity by 2030. Growth will also be supported by the government’s plan to add 17,000km of access-controlled expressways by 2033. Under the new plan, the government aims to construct a new high-speed road network worth INR11.2 trillion ($124.9 billion) by 2033. In January 2026, the government announced that it created a three-year Public private partnership (PPP) project pipeline involving 852 projects worth INR17 trillion ($189.6 billion). Furthermore, in November 2025, the Indian government approved INR200 billion ($2.2 billion) worth of highway projects for Gujarat under the National Highways Authority of India (NHAI). Key stretches such as Ahmedabad to Mumbai, Rajkot to Gondal to Jetpur, and Ahmedabad to Udaipur are being prioritized for expedited upgrades, widening, and expansion. The state’s highways feature four and six-lane carriageways and advanced logistics infrastructure, with ongoing upgrades including expressway construction, highway widening, resurfacing, and the deployment of smart traffic systems to ensure efficient freight movement, tourism, and rural accessibility
The Indian construction industry is predicted to record an average annual growth rate of 6% between 2027 and 2030, supported by investments in manufacturing, infrastructure and energy projects, coupled with the government’s aim to construct 500GW of non-fossil fuel electricity generation capacity by 2030. Growth will also be supported by the government’s plan to add 17,000km of access-controlled expressways by 2033. Under the new plan, the government aims to construct a new high-speed road network worth INR11.2 trillion ($124.9 billion) by 2033. In January 2026, the government announced that it created a three-year Public private partnership (PPP) project pipeline involving 852 projects worth INR17 trillion ($189.6 billion). Furthermore, in November 2025, the Indian government approved INR200 billion ($2.2 billion) worth of highway projects for Gujarat under the National Highways Authority of India (NHAI). Key stretches such as Ahmedabad to Mumbai, Rajkot to Gondal to Jetpur, and Ahmedabad to Udaipur are being prioritized for expedited upgrades, widening, and expansion. The state’s highways feature four and six-lane carriageways and advanced logistics infrastructure, with ongoing upgrades including expressway construction, highway widening, resurfacing, and the deployment of smart traffic systems to ensure efficient freight movement, tourism, and rural accessibility
The Construction in India - Key trends and Opportunities to 2030 (Q1 2026) 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.
Report Scope
This report provides a comprehensive analysis of the construction industry in India. It provides:
- Historical (2021-2025) and forecast (2026-2030) 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
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
