Current and Projected Growth of Construction Industry in India.
- By Admin
- 28-08-2023
In 2021, the Indian construction industry grew by 17.1
percent, owing to the continuous loosening of limitations and increased
construction activity in the road and highways sector. Increased government
investment in the transportation, health, energy, and housing infrastructure
sectors under the Budget for 2022/2023, which will encourage new public-private
partnerships to create large-scale projects in these sectors, will help the
industry grow by 5.8% in 2022.
The Ministry of Road Transport and Highways of India
(MoRTH) stated in December 2021 that it would invest INR7 trillion ($92.4
billion) in infrastructure projects over the following 2-3 years. The
government's goal to dramatically boost the stock of affordable housing units
for low- and middle-income cohorts under the 'Housing for All' programme by
2022 will also help the industry develop.
Despite the fact that the Budget for 2022/2023 will
provide significant support to the building industry, rising construction
prices, delays in land acquisition and tenders, and supply chain restrictions
may stymie construction progress in the short to medium term. Due to the
present crisis in Ukraine, construction material costs are likely to grow even
further, with rising energy costs affecting the energy-intensive manufacture of
cement, bricks, and concrete.
The construction industry is predicted to increase at
a 6.2 percent annual rate between 2023 and 2026, thanks to investment under the
Pradhan Mantri Gati Shakti Master Plan. Between fiscal years 2020 and 2025, the
industry will benefit from INR111 trillion ($1.5 trillion) in investment
through the National Infrastructure Pipeline (NIP) (April 2019 to March 2025).
The government created the National Monetisation
Pipeline (NMP) in August 2021 to raise more funding for infrastructure
development. From FY2021/2022 to FY2024/2025, the strategy focuses on obtaining
funds from the private sector by leasing out state-owned infrastructure assets
and investing the proceeds in new infrastructure projects.
The government's intention to complete 23 new highway
and expressway projects by FY2024/2025, with an anticipated investment of
INR3.3 trillion ($46 billion), will also assist forecast-period growth.
In addition, between 2015 and 2035, the government
aims to invest INR5.8 trillion ($82 billion) in port infrastructure and
modernization projects as part of the Sagar Mala project.
