The analyst projects the Indian construction industry to expand in real terms by 8.1% in 2025 and 6.4% in 2026, supported by investments in infrastructure and energy projects, coupled with the latest financial year (FY) 2025-26 (April 2025 to March 2026) Budget. In February 2025, India's Finance Minister Nirmala Sitharaman presented the Union Budget for FY2025-26 in Parliament, outlining a total expenditure of INR50.7 trillion ($603 billion), marking a 7.4% increase over the revised estimates for FY2024-25. According to the Reserve Bank of India (RBI), the industrial production index for infrastructure/construction goods grew by 8.4% year on year (YoY) in the first 10 months of 2025. In annual terms, it grew by 6.5% in 2024. Furthermore, the Bihar government approved the construction of 11 new satellite cities in November 2025, including two greenfield cities in Sonepur (near Patna) and Sitapuram (near Sitamarhi), as well as nine satellite cities in divisional headquarters, at Patna, Chhapra, Gaya, Muzaffarpur, Darbhanga, Bhagalpur, Munger, Purnea, and Saharsa.
The Indian construction industry is predicted to record an average annual growth rate of 6.1% between 2027 and 2029, supported by investments in manufacturing, infrastructure and energy projects. The country aims to construct 500GW of non-fossil fuel electricity generation capacity by 2030. In November 2025, Madhya Pradesh received investment proposals worth INR366 billion ($4.4 billion) from 10 companies during the ‘Investment Opportunities in Madhya Pradesh’, focusing on the development of the industrial sector. The major investment proposals include INR15 billion ($178.4 million) for packaging engineering, INR295 billion ($3.5 billion) for renewable energy, INR11 billion ($130.8 million) for food processing, INR3.5 billion ($41.6 million) for infrastructure, and INR7.2 billion ($85.6 million) for an agro-food park. The state government is also allocating land for an INR180 billion ($2.1 billion) rail coach manufacturing unit by Bharat Earth Movers Limited (BEML), a local railway transportation company, and is developing India’s largest pumped storage hydro project in Neemuch, which will be completed by 2028.
The Indian construction industry is predicted to record an average annual growth rate of 6.1% between 2027 and 2029, supported by investments in manufacturing, infrastructure and energy projects. The country aims to construct 500GW of non-fossil fuel electricity generation capacity by 2030. In November 2025, Madhya Pradesh received investment proposals worth INR366 billion ($4.4 billion) from 10 companies during the ‘Investment Opportunities in Madhya Pradesh’, focusing on the development of the industrial sector. The major investment proposals include INR15 billion ($178.4 million) for packaging engineering, INR295 billion ($3.5 billion) for renewable energy, INR11 billion ($130.8 million) for food processing, INR3.5 billion ($41.6 million) for infrastructure, and INR7.2 billion ($85.6 million) for an agro-food park. The state government is also allocating land for an INR180 billion ($2.1 billion) rail coach manufacturing unit by Bharat Earth Movers Limited (BEML), a local railway transportation company, and is developing India’s largest pumped storage hydro project in Neemuch, which will be completed by 2028.
The Construction in India - Key Trends and Opportunities to 2029 (Q4 2025) 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 (2020-2024) and forecast (2025-2029) 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
