Dublin, Feb. 13, 2026 (GLOBE NEWSWIRE) -- The "India Construction Industry Databook - Market Size & Forecast by Value and Volume, 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure Construction, City Level Construction by Value and Construction Cost Structure, Q1 2026 Update" report has been added to ResearchAndMarkets.com's offering.
The construction market in India is expected to grow by 11.2% on annual basis to reach INR 25.31 trillion in 2026.
The construction market in the country experienced robust growth during 2021-2025, achieving a CAGR of 14.2%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 8.8% during 2026-2030. By the end of 2030, the construction sector is projected to expand from its 2025 value of INR 22.77 trillion to approximately INR 39.10 trillion.
This report provides a detailed data-centric analysis of the construction sector in India, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.
It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.
Key Insights
India Residential Construction
India's residential construction sector is being shaped by a "two-speed" market policy-supported affordable housing and rental solutions on one side, and faster-moving mid-to-premium supply in job-rich urban corridors on the other. While headline input inflation has moderated from the 2021-22 peak, execution risks persist due to labour tightness, financing selectivity, and periodic volatility in steel- and cement-linked packages. Recent policy signals (PMAY-U 2.0 and rental housing mechanisms) are keeping the affordable pipeline active, while metro expansion and city infrastructure upgrades are pulling new housing development toward transit-linked growth nodes.
Project Landscape
- Ongoing/upcoming project focus:
- Urban affordable housing under PMAY-U 2.0 (EWS/LIG/MIG) with central assistance support
- Affordable Rental Housing Complexes (ARHC) rental housing for migrants and low-income urban workers, structured with long tenure requirements
- Private vs. public involvement: Public agencies anchor affordable supply and beneficiary-linked delivery; private developers dominate mid/premium corridors, often leveraging transit and employment growth.
- Investment outlook: Policy-linked affordability and rental are relatively resilient; premium supply remains strongest where absorption is supported by sustained white-collar/GCC hiring and infrastructure-led connectivity (metro, arterial roads).
Industry-Specific Developments
- Technology: Greater use of precast/formwork systems, digital QA/QC, and tighter project controls to manage labour constraints and compress cycle times in high-rise markets.
- Sustainability: Energy efficiency and water management features are increasingly becoming "default specs" in branded developments, with green-certified positioning improving sales velocity in premium segments.
- Workforce: Finishing trades (MEP, facade, waterproofing) remain bottlenecks in fast-growing metros; developers are responding through package standardisation and deeper subcontractor partnerships.
India Commercial Construction
India's commercial construction market is being redefined by record office leasing, the expanding footprint of Global Capability Centres (GCCs), and the rapid buildout of digital infrastructure (data centres). Rather than a broad-based demand wave, growth is concentrated in Grade-A office campuses, mixed-use precincts, and power-dense data centre clusters. Developers and investors are increasingly underwriting projects based on infrastructure readiness (power, fibre, transit) and ESG-grade building performance.
Project Landscape
- Ongoing/upcoming activity pockets:
- Office: Sustained pipeline in Bengaluru, Hyderabad, NCR, Pune, Chennai, Mumbai, supported by record leasing levels (2025).
- Data centres: Inventory and capacity additions have accelerated (H1 2025 and 2025 additions cited by leading research and business press).
- Private vs. public: Predominantly private-led; public role is strongest in enabling infrastructure, clearances, and state-level investment facilitation.
- Investment outlook: Capital is gravitating to ESG-compliant Grade-A offices and DC platforms, with underwriting increasingly tied to power/fibre certainty and tenant pre-commitments.
Industry-Specific Developments
- Technology: BIM, digital twins, and commissioning-led delivery models are becoming essential, particularly for data centres and large office campuses.
- Sustainability: High-performance facades, efficient HVAC, renewable integration, and water reuse are now core to attracting institutional occupiers and investors.
- Workforce: Rising demand for commissioning engineers, MEP coordinators, and reliability specialists in mission-critical builds.
India Institutional Construction
Institutional construction in India is being propelled by health system strengthening and education infrastructure modernisation, yet execution is uneven across states due to procurement capacity, tender cycles, and local delivery constraints. The most scalable opportunities are in repeatable, programmatic builds (primary care facilities, labs, school upgrades) where standard designs and transparent funding mechanisms can accelerate delivery.
Project Landscape
- Healthcare: PM-ABHIM progress updates show ongoing construction/upgradation targets for AAMs, labs, and block-level public health units.
- Education: PM SHRI selection status indicates a large nationwide upgrade pipeline across phases Expansion of KVs/NVs continues via approvals for new KVs (capex-linked school infrastructure). State-led school building renewal/upgrades are active (examples from recent state initiatives).
- Private vs. public: Primarily public-funded assets, with private participation via EPC/PMC and specialised hospital infrastructure delivery.
- Investment outlook: Stable pipeline in health and school upgrades; acceleration depends on procurement capacity and standardisation of designs/BOQs.
Industry-Specific Developments
- Technology: Digital asset handover, smart building controls in hospitals, and improved safety compliance (fire/structural) in school upgrades.
- Sustainability: Energy-efficient HVAC, water reuse, and resilient design are increasing focus areas for hospitals and campus-style institutions.
- Workforce: Project managers and commissioning specialists are in short supply, particularly for healthcare MEP and lab-grade infrastructure.
India Industrial Construction
Industrial construction is being driven by India's manufacturing push and supply-chain localisation, most visibly in semiconductors, electronics, renewables manufacturing, and large industrial parks/corridors. This segment is execution-intensive: civil completion alone is not success; commissioning readiness (power, water, utilities, clean environments, EHS compliance) is the true critical path.
Project Landscape
- Semiconductor manufacturing: Tata Electronics-PSMC agreement outlines a major planned fab investment scale and job creation, implying multi-year construction demand across civil, cleanroom, and utilities.
- Industrial corridors: DPIIT overview notes progress on trunk infrastructure in industrial corridor programs (enabling serviced land and node development).
- Private vs. public: Public sector builds enabling infrastructure and node development; private sector builds plants, warehouses, captive utilities, and worker housing.
- Investment outlook: Strongest where nodes have "ready utilities" and logistics connectivity; demand increasingly links to export/production ecosystems and supplier clustering.
Industry-Specific Developments
- Technology: Modular utility skids, advanced QA/QC, and integrated digital project controls are becoming standard for high-tech/mission-critical industrial builds.
- Sustainability: Renewable power sourcing, water stewardship, and low-carbon manufacturing facilities are increasingly necessary for global supply-chain compliance.
- Workforce: Heightened demand for EHS leaders, electrical/mechanical supervisors, and commissioning engineers, especially in semiconductor, electronics, and high-spec industrial parks.
India Infrastructure Construction
Infrastructure construction in India is being propelled by high public capex, a widening PPP pipeline, and sustained workstreams across metro, highways, ports/logistics, and energy transmission. The near-term constraint is less about project identification and more about execution capacity, land/RoW, contractor bandwidth, and the ability to sequence multi-agency interfaces.
Project Landscape
- Metro: Ongoing city-level openings and extensions (recent inaugurations and trials show continuing pipeline momentum).
- Highways: Bharatmala progress disclosures provide visibility on awarded vs. constructed kilometres.
- Ports/logistics: Sagarmala large identified project set and completion progress; multiple executing agencies, including ports, railways, NHAI, and states.
- PPP participation: Recent announcements indicate a major PPP project pipeline over the next three years, signalling deeper private participation in public infrastructure.
- Budget allocations/outlook: Union Budget 2025-26 capex signal supports continued pipeline depth for transport, energy, and urban infrastructure.
Industry-Specific Developments
- Technology: Increased adoption of digital monitoring, project controls, and corridor-level planning tools for schedule adherence and claims reduction.
- Sustainability: Stronger emphasis on renewable integration, low-emission mobility, and grid/transmission readiness to support the energy transition.
- Workforce: Shortages in equipment operators, surveyors, project controls, and contract administrators are elevating claims intensity and increasing the value of robust EPC governance.
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