India’s construction industry regains momentum

According to GlobalData, the Indian construction industry regained its growth momentum, helped by positive developments in economic conditions, improvement in investor confidence, and investments in transport infrastructure, energy, and housing projects. The country’s output value has increased from $465 billion, to $506 billion.
GlobalData’s ‘Construction in India – Key Trends and Opportunities to 2023’ report reveals that India’s construction industry is expected to grow at a CAGR of 6.44% to $691 billion in 2023. This is further to a registered output growth of 8.8% in 2017, up from 1.9%. The government’s ‘Housing for All’ initiative aims to build 20 million affordable homes for the urban poor by 2022. This will provide a significant boost to residential construction (the market’s largest category), which will account for a third of the industry’s total value by 2023.
In its budget, the government increased its expenditure towards infrastructure development from Rs 4.9 trillion, to Rs 6 trillion.
Expected to account for 30.1% of the industry’s total value in 2023, it is thought that residential construction will remain the largest market. It is also predicted that greater demand for residential construction will be created over the forecast period.