The Indian construction Industry in India is expected to reach $1.4 Tn by 2025. The construction market is expected to reach US$ 1.42 trillion by 2027, expanding at a CAGR of 17.26% during the 2022-2027 forecast period.
It has been estimated that by 2030, more than 40% of the population is expected to live in urban India , creating a demand for 25 Mn additional mid-end and affordable units.
![Indian Construction Industry in 2022-2023 Indian Construction Industry in 2022-2023](images/construction.jpg)
The Indian Government under the Union budget 2023 allocated about INR 10 Lakh Crore for the construction sector.
The outlay for PM Awas Yojana is being enhanced by 66 % to over 79,000 cr.
Growth Drivers for the construction Industry• India is on a mission to develop 100 smart cities, thus improving the quality of life by modern technology.
• Several Industrial corridors are being planned to improve industrialization.
• Real estate demand is set to increase by 15-18 Mn sq. ft. by 2025 across major cities thanks to growth of the Information technology sector.
• Demand for warehousing stock from 287 mn sq ft (2021) to 500 mn sq ft (2030) in the top 8 Tier1 cities.
Industry InvestmentsFDI in construction development (townships, housing, built-up infrastructure and construction development projects) and construction (infrastructure) activity sectors stood at US$ 26.23 billion and US$ 28.95 billion, respectively, in 2022.
India is expected to become the third-largest construction market globally by this year . India plans to spend US$ 1.4 trillion on infrastructure projects through the National Infrastructure Pipeline (NIP), from 2019 to 2023, to ensure sustainable development in the country.