DUBLIN--(BUSINESS WIRE)--The "India Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value , Q4 2022 Update" report has been added to ResearchAndMarkets.com's offering.

The construction industry in India is forecast to grow by 12.8% to reach INR 40,982 billion in 2022.

Despite near-term challenges in certain construction sectors, medium to long term growth story in India remains intact. The construction industry in India is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 10.8% during 2022-2026. The construction output in the country is expected to reach INR 61,721.3 billion by 2026.

Order inflows in the railways, roadways and drinking water sectors are expected to be healthy in 2022, supporting the growth of the construction industry in India. This, along with the increased spending from the government on infrastructure projects, is projected to drive market growth. According to a report from ICRA, the construction industry in India is expected to witness healthy revenue growth in the medium term. According to the report, the construction Gross Value Added (GVA) is projected to grow to 9% to 11% in FY 2022-23.

While buildings and roads continue to account for the bulk of the order book, urban and metro infrastructure, along with water and sanitation, have also seen significant expansion in the order book over the last few years. However, the rising commodity prices and the increased competition in the space are expected to have an impact on the construction industry's profitability. According to the ICRA report, the profitability is expected to decline 100 to 200 basis points in FY 2022-23.

Government spending on infrastructure projects surges during Q2 2022

Over the last few years, the Indian government has carried out several infrastructure projects, resulting in increased spending on the sector. This trend has continued further in Q2 2022.

• Government spending on infrastructure projects has seen a sharp surge in Q2 2022. Compared to Q2 2021, the capital expenditure during the quarter surged 57% to reach INR 1,75,000 crore.
• Notably, the government is well on its course to building more national highways and rail lines during the 2015 to 2025 period. By the end of 2025, the government is planning to have the total length of national highways reach 1,80,000 km, while that of the rail lines reach 1,20,000 km.
• This is much higher than what the government has cumulatively done during the 1950 to 2015 period. Notably, between 1950 to 2015, India built 4,000 km of national highways, thereby taking the total length to 77,000 km in 2015.

The increasing government spending on these infrastructure projects is projected to keep driving the growth of the overall construction industry in India over the next three to four years.

The Indian government approves the extension of the Pradhan Mantri Awas Yojana-Urban scheme

In August 2022, the Indian government approved the extension of the Pradhan Mantri Awas Yojana-Urban scheme, thereby allowing the houses sanctioned under the scheme to be completed.

Notably, the scheme was launched by the government in August 2015 with the goal of constructing 1.12 crore homes in the urban areas by August 15, 2022. This scheme has now been extended till December 31, 2024. In the Union Budget, the government allocated INR 48,000 crores under the Pradhan Mantri Awas Yojana-Urban scheme for the construction of 80,00,000 homes facilitating affordable housing.

The extension of the affordable housing scheme is forecast to further boost the growth of the residential construction market in India over the next few years, thereby supporting the growth of the overall market from the short to medium-term perspective.

The commercial construction sector is projected to support the growth of the industry in India

After two years of the pandemic-caused slump, the commercial construction sector is recording strong growth momentum in 2022. Across India, several new commercial construction projects have been undertaken by construction firms.

• In August 2022, Omaxe, the realty developer, announced that the firm had acquired 50.40 acres of land from the Delhi Development Authority at Dwarka to construct an indoor and outdoor sports facility, which includes a cricket stadium and commercial complex. Notably, the project is worth INR 2,100 crore and is expected to boost the infrastructure upgradation in the national capital.

The report projects that the rising demand for suitable workplaces and commercial properties will further support the growth of the construction industry in India over the next three to four years.

Scope

India Top Cities Construction Data

India Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

India Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

India Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Construction stage (new construction, re-development & maintenance)

India Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

India Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

India Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare construction
• Educational construction
• Public sector
• Construction stage (new construction, re-development & maintenance)

India Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by

• Healthcare green building construction
• Educational green building construction

India Infrastructure Construction Sectors: 10- year market size & forecast in value terms by

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

India Green Infrastructure Construction: 10- year market size & forecast in value terms

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