India Construction Industry Report 2025: Output to Expand in Real Terms by 8.1% in 2025 and 6.4% in 2026, Driven by Investments in Infrastructure and Energy Projects - Forecast to 2029

India's construction industry offers promising growth opportunities through substantial investments in infrastructure, energy, and manufacturing projects. Key developments include new satellite cities, renewable energy initiatives, and major industrial investments, supported by government budgets and favorable policies.


Dublin, Feb. 03, 2026 (GLOBE NEWSWIRE) -- The "India Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)" report has been added to ResearchAndMarkets.com's offering.

Indian construction industry to expand in real terms by 8.1% in 2025 and 6.4% in 2026, supported by investments in infrastructure and energy projects, coupled with the latest financial year (FY) 2025-26 (April 2025 to March 2026) Budget.

In February 2025, India's Finance Minister Nirmala Sitharaman presented the Union Budget for FY2025-26 in Parliament, outlining a total expenditure of INR50.7 trillion ($603 billion), marking a 7.4% increase over the revised estimates for FY2024-25. According to the Reserve Bank of India (RBI), the industrial production index for infrastructure/construction goods grew by 8.4% year on year (YoY) in the first 10 months of 2025.

In annual terms, it grew by 6.5% in 2024. Furthermore, the Bihar government approved the construction of 11 new satellite cities in November 2025, including two greenfield cities in Sonepur (near Patna) and Sitapuram (near Sitamarhi), as well as nine satellite cities in divisional headquarters, at Patna, Chhapra, Gaya, Muzaffarpur, Darbhanga, Bhagalpur, Munger, Purnea, and Saharsa.

The Indian construction industry is predicted to record an average annual growth rate of 6.1% between 2027 and 2029, supported by investments in manufacturing, infrastructure and energy projects. The country aims to construct 500GW of non-fossil fuel electricity generation capacity by 2030. In November 2025, Madhya Pradesh received investment proposals worth INR366 billion ($4.4 billion) from 10 companies during the 'Investment Opportunities in Madhya Pradesh', focusing on the development of the industrial sector.

The major investment proposals include INR15 billion ($178.4 million) for packaging engineering, INR295 billion ($3.5 billion) for renewable energy, INR11 billion ($130.8 million) for food processing, INR3.5 billion ($41.6 million) for infrastructure, and INR7.2 billion ($85.6 million) for an agro-food park. The state government is also allocating land for an INR180 billion ($2.1 billion) rail coach manufacturing unit by Bharat Earth Movers Limited (BEML), a local railway transportation company, and is developing India's largest pumped storage hydro project in Neemuch, which will be completed by 2028.

Report Scope

  • Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in India, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts
  • Understand the latest industry and market trends
  • Formulate and validate business strategies using the analyst's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook
4.1 All Construction

  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index

4.2 Commercial Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.3 Industrial Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.4 Infrastructure Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.5 Energy and Utilities Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.6 Institutional Construction

  • Outlook
  • Project analytics
  • Latest news and developments

4.7 Residential Construction

  • Outlook
  • Project analytics
  • Latest news and developments

5 Key Industry Participants
5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/r7jybo

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