Construction in India – Key Trends and Opportunities to 2025 (Q2 2021)

India’s construction industry is forecast to record real growth of 11.8% in 2021, following a contraction of 12.4% in 2020. The outbreak of the Coronavirus (COVID-19) pandemic and subsequent lockdown restrictions weighed on the industry’s output last year. On a positive note, government investment on infrastructure development aided the industry’s recovery in the fourth quarter of 2020. According to the Ministry of Statistics and Programme Implementation (MOSPI), the Indian construction industry’s value-add grew by 14.5% year on year (YoY) in Q1 2021 – up from Y-o-Y growth of 6.5% in Q4 and a decline of 7.2% in Q3 2020.

GlobalData expects the industry to continue to recover over the remainder of the forecast period, growing by an average of 6.7% in real terms between 2022-2025, with total output exceeding pre-pandemic levels by 2022. The industry’s output over the forecast period will be supported by investment on transport, energy, residential and industrial infrastructure projects. In the Fiscal Year (FY) 2021/2022 budget, the government allocated INR5.5 trillion (US$78.2 billion) towards capital expenditure. Also announced was an increase in the number of projects in the National Infrastructure Pipeline (NIP), rising from 6,835 projects to 7,400; as of June 2021, the number of projects in the NIP has risen further to 7,973. To fund the new projects, the government plans to increase the share of capital expenditure in central and state budgets and establish a new INR200 billion (US$2.8 billion) development finance institution, with a lending target of INR5 trillion (US$70.5 billion) over the next three years.

The industry’s growth over the forecast period will also be supported by the government’s plan to significantly increase the stock of affordable housing units for low and middle-income cohorts, under the ‘Housing for All’ program by 2022. Forecast-period growth will also be supported by the government’s plan to complete construction of 23 new highway and expressway projects by FY2024/2025, with an estimated investment of INR3.3 trillion (US$46 billion) over the next five years.

This report provides detailed market analysis, information, and insights into India’s construction industry, including –

– India’s 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 India’s 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 (2016-2020) and forecast (2021-2025) 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 GlobalData's 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 strategy using GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

– Outlook

– Latest news and developments

– Construction Projects Momentum Index

4.2 Commercial Construction

– Outlook

– Project analytics

– Latest news and developments

4.3 Industrial Construction

– Outlook

– Project analytics

– Latest news and developments

4.4 Infrastructure Construction

– Outlook

– Project analytics

– Latest news and developments

4.5 Energy and Utilities Construction

– Outlook

– Project analytics

– Latest news and developments

4.6 Institutional Construction

– Outlook

– Project analytics

– Latest news and developments

4.7 Residential Construction

– Outlook

– Project analytics

– Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?

7.2 Definitions

7.3 CRI Methodology

7.4 GlobalData Construction

Contact Us

List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: India, Key Economic Indicators

Table 3: India, Commercial Construction Output by Project Type (Real % Change), 2016-2025

Table 4: India, Top Commercial Construction Projects by Value

Table 5: India, Industrial Construction Output by Project Type (Real % Change), 2016-2025

Table 6: India, Top Industrial Construction Projects by Value

Table 7: India, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025

Table 8: India, Top Infrastructure Construction Projects by Value

Table 9: India, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025

Table 10: India, Top Energy and Utilities Construction Projects by Value

Table 11: India, Institutional Construction Output by Project Type (Real % Change), 2016-2025

Table 12: India, Top Institutional Construction Projects by Value

Table 13: India, Residential Construction Output by Project Type (Real % Change), 2016-2025

Table 14: India, Top Residential Construction Projects by Value

Table 15: India, Key Contractors

Table 16: India, Key Consultants

Table 17: India, Construction Output Value (Real, US$ Million)

Table 18: India, Construction Output Value (Nominal, INR Billion)

Table 19: GlobalData Construction Market Definitions

Table 20: Risk Dimensions

Table 21: Ratings, Scores and Definitions

List of Figures

List of Figures

Figure 1: South and South-East Asia, Construction Output (Real % Change), 2020 and 2021

Figure 2: India, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: India, COVID-19 Confirmed Cases

Figure 4: India, Risk Summary

Figure 5: India, Risk Regional Comparison

Figure 6: India, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025

Figure 7: India, Construction Output Value, by Sector (Real, US$ Million), 2016-2025

Figure 8: India, Construction Value-Add (Constant 2011-2012 Prices, INR Billion)

Figure 9: India, Gross Fixed Capital Formation (Constant 2011-2012 Prices, INR Billion)

Figure 10: India, Construction Projects Momentum Index

Figure 11: South and South-East Asia, Construction Projects Momentum Index

Figure 12: India, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 13: India, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 14: India, Trade, Hotels, Transport and Communication Sector Value-Add (Constant 2011-2012 Prices, INR Billion)

Figure 15: India, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 16: India, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 17: India, Manufacturing Value-Add (Constant 2011-2012 Prices, INR Billion)

Figure 18: Total Exports, in INR Billion

Figure 19: India, Industrial and Manufacturing Production Index (at 2011-2012 Base Prices, % Change YoY)

Figure 20: India, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 21: India, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 22: India, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 23: India, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 24: India, Electricity, Gas and Water Services Value-Add (Constant 2011-2012 Prices, INR Billion)

Figure 25: India, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 26: India, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 27: India, Public Administration, Defence and Other Services Value-Add (Constant 2011-2012 Prices, INR Billion)

Figure 28: India, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 29: India, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 30: India, Financial, Real Estate and Professional Services Value-Add (Constant 2011-2012 Prices, INR Billion)

Figure 31: India, Housing Price Index (2010-11=100)

Figure 32: India, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 33: India, Headquarters of Key Consultants (% of Total Project Pipeline)

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