Building a sustainable future
The Construction industry in India consists of the Real estate as well as the Urban development segment. The Real estate segment covers residential, office, retail, hotels and leisure parks, among others. While Urban development segment broadly consists of sub-segments such as Water supply, Sanitation, Urban transport, Schools, and Healthcare. FDI in the construction development sector (townships, housing, built up infrastructure and construction development projects) and construction (infrastructure) activities stood at $26.08 bn and $24.72 bn, respectively, between April 2000 and March 2021.
- By 2025, Construction market in India is expected to emerge as the third largest globally
- By 2025, Construction output is expected to grow on average by 7.1% each year
- Construction equipment industry revenue stood at $ 6.5 Bn in 2020
- Cement production (weight: 5.37 per cent) increased by 21.8 per cent in July, 2021 over July, 2020.
100% FDI under automatic route is permitted in completed projects for operations and management of townships, malls/shopping complexes, and business constructions. 100% FDI is allowed under the automatic route for urban infrastructures such as urban transport, water supply and sewerage and sewage treatment.
Construction Materials
Second largest producer of Cement globally
Urban areas are expected to become home to 40% of India’s population and contribute to 75% of India’s GDP by 2030 with the increase in urbanization. The number of cities with a population of more than 1 mn has increased from 35 in 2001 to 53 in 2011. This is expected to be 87 by 2030. After agriculture, the building materials industry is the second largest employer in the country. Not only does the sector employ a large number of people, but also contributes significantly to the nation’s economy. It accounts for 8% of India’s GDP and is valued at approximately $126 bn; industry reports forecast building materials to record a CAGR of 15.7% y-o-y to reach $738.5 bn by 2022.