The analyst expects the Indian construction industry to expand by 7.1% in real terms in 2025, supported by rising foreign direct investment (FDI) and increased public and private sector investments in transport infrastructure and energy projects. According to the Department for Promotion of Industry and Internal Trade (DPIIT), total FDI in the country grew by 15% YoY, reaching $18.6 billion in the first quarter of financial year (FY) 2025-26 (April 2025 to March 2026). In August 2025, the government allocated INR260.7 billion ($3.1 billion) to develop 128km of roads in Delhi. Projects include a 65km road from Delhi to Dehradun and a 17km road from NH344M to Tronica City. Also in August 2025, Singapore-based real estate company CapitaLand signed an agreement with the Maharashtra government to invest INR192 billion ($2.3 billion) in the commercial sector for the construction of business parks, data centers, logistics facilities, and industrial parks in Maharashtra by 2030. However, increases in total project costs, delays due to government approval issues, rising government debt, a widening budget deficit, and recent US tariff measures are likely to weigh on the industry’s short-term growth.
The Indian construction industry is expected to record an average annual growth rate of 6.1% between 2026 and 2029, supported by investments in manufacturing, infrastructure, and energy projects. The state government of Maharashtra aims to generate 50% of its energy from renewable sources by 2030, supporting the central government’s overall target of achieving carbon neutrality by 2070. In line with this, in June 2025, the government-owned energy company National Thermal Power Corporation (NTPC) reported plans to develop 20GW of hydropower, of which 3GW to 5GW is expected to be completed by 2032. Furthermore, in July 2025, the government signed four agreements with private companies totaling INR320 billion ($3.8 billion) for the construction of four pumped-storage hydropower plants to generate 6.5GW of energy
The Indian construction industry is expected to record an average annual growth rate of 6.1% between 2026 and 2029, supported by investments in manufacturing, infrastructure, and energy projects. The state government of Maharashtra aims to generate 50% of its energy from renewable sources by 2030, supporting the central government’s overall target of achieving carbon neutrality by 2070. In line with this, in June 2025, the government-owned energy company National Thermal Power Corporation (NTPC) reported plans to develop 20GW of hydropower, of which 3GW to 5GW is expected to be completed by 2032. Furthermore, in July 2025, the government signed four agreements with private companies totaling INR320 billion ($3.8 billion) for the construction of four pumped-storage hydropower plants to generate 6.5GW of energy
The Construction in India - Key Trends and Opportunities to 2029 (Q3 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.
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
