The analyst expects the Indian construction industry to expand in real terms by 6.4% in 2026, supported by an increase in investments in data center, manufacturing, and transportation projects. According to the Ministry of Commerce and Industry (MoCI), construction value-add in the country grew by 8.4% year-on-year (YoY) in Q1 2026, following YoY growth of 6.7% in Q4 and 8.9% in Q3 2025. Growth in the construction industry will also be driven by the country’s capital expenditure of INR12.2 trillion ($136.1 billion) in the Financial Year (FY) 2026-27 (from 1 April 2026 to 31 March 2027) budget, which is equivalent to 3.1% of GDP and marks an increase of 11.5% compared to the expenditure of INR10.9 trillion ($121.6 billion) in the revised FY2025-26 budget. Furthermore, according to the Ministry of Electronics and Information Technology, the country’s total data center capacity increased from 375MW in 2020 to around 1,500MW by 2025.
Over the remainder of the forecast period, the Indian construction industry is expected to register an average annual growth rate of 6% between 2027 and 2030, supported by an increase in public sector investments in the country’s transport projects, in line with the government’s aim to add 17,000km of access-controlled expressways by 2033 and construct a new high-speed road network worth INR11.2 trillion ($124.9 billion) by 2033, coupled with investments in renewable energy and manufacturing projects. In May 2026, the Maharashtra government approved four major access-controlled expressways and road projects, covering a total length of 547km across the Vidarbha region, with an estimated investment of INR519.1 billion ($5.8 billion). All the approved projects are scheduled to be completed by the end of 2028.
Over the remainder of the forecast period, the Indian construction industry is expected to register an average annual growth rate of 6% between 2027 and 2030, supported by an increase in public sector investments in the country’s transport projects, in line with the government’s aim to add 17,000km of access-controlled expressways by 2033 and construct a new high-speed road network worth INR11.2 trillion ($124.9 billion) by 2033, coupled with investments in renewable energy and manufacturing projects. In May 2026, the Maharashtra government approved four major access-controlled expressways and road projects, covering a total length of 547km across the Vidarbha region, with an estimated investment of INR519.1 billion ($5.8 billion). All the approved projects are scheduled to be completed by the end of 2028.
The Construction in India - Key Trends and Opportunities to 2030 (Q2 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.
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
