The Indian construction industry offers abundant business opportunities

By 2030, the Indian construction sector is expected to account for 15% of the country’s GDP and employ more than 70 million people.

In 2023, India became the world’s most populous country with 1.429 billion inhabitants. This year, it is poised to become the fourth-largest economy globally, and within two years may pose a serious challenge to Germany, which recently claimed third place after overtaking Japan.

According to International Monetary Fund forecasts, India is the most likely contender over the next decade to challenge the dominance of the two economic superpowers, the United States and China.

Construction is without question one of the strongest sectors in the Indian economy, driven by massive public and private investments, technological innovations and large-scale infrastructure projects. By 2030, the sector is expected to account for 15% of the country’s GDP and employ more than 70 million people.

According to Next Move Strategy Consulting, the Indian construction market was valued at US $884.72 billion in 2023 and is predicted to reach $2,134.43 billion by 2030, at a compound annual growth rate (CAGR) of 12.6% from 2024 to 2030.

Based on Global Data estimates, India ranks among the top five largest construction markets in the world alongside China, the USA, the UK and Indonesia.

Further insights into this sustained growth can be found in the Indian press, which highlights the construction sector’s rapid expansion, primarily driven by government-backed initiatives focused on infrastructure development and urbanisation. Central to these efforts is the National Investment Pipeline (NIP), a government programme with a $1.4 trillion investment budget for infrastructure projects and substantial allocations for renewable energy, roads and highways, urban infrastructure and railways.

The case for investing in India’s construction sector is explained by the government portal Invest India, which estimates that 50% of India’s population will live in urban areas by 2046 and notes that India already boasts the third-largest metro network in the world, transporting approximately 10 million passengers daily – two good reasons for the government to give a further boost to the urban construction market.

Affordable housing: the PMAY plan

The Indian government has introduced several initiatives to address the problem of affordable housing. One example is the Pradhan Mantri Awas Yojana (PMAY), a social housing programme that aims to construct millions of affordable homes for low-income families through subsidies and financial assistance. With initiatives like these, the sector is set for significant growth and a major leap forward, underscoring its pivotal role within India’s broader economic strategy. Projects such as PMAY highlight the government’s strong commitment to long-term, sustainable urban development.

Real estate market expected to reach $1 trillion by 2030

In parallel with construction, India’s real estate market is also advancing rapidly. According to the report entitled Indian Real Estate: The Quantum Leap, a collaboration between the Confederation of Real Estate Developers’ Associations of India (CREDAI) and Colliers, the sector is projected to grow significantly to reach $1 trillion by 2030. Under an optimistic scenario, it could achieve a size of $7-10 trillion by 2047. The report also predicts market consolidation across all real estate segments and anticipates expansion beyond metropolitan areas into smaller cities. The number of Indian cities with populations exceeding 1 million is expected to grow from around 60 to over 100 by 2050.

Sustainable development remains a top priority for India’s construction sector, with government and private stakeholders increasingly advocating for green building practices and energy-efficient technologies.