India Construction Industry Report 2025 | Massive Infrastructure Budget Unveiled, INR50.7 Trillion Allocated for 2025-2026 - Forecast to 2029

India’s construction industry is set to grow by 7.1% in 2025, boosted by public and private investments and an ambitious nuclear expansion plan. The FY2025-26 Budget allocates significant funds to transport and housing projects, propelling industry growth. Major projects in Hyderabad and Chennai highlight market opportunities.

Dublin, July 16, 2025 (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 (Q2 2025)" report has been added to ResearchAndMarkets.com's offering.

The analyst expects India's construction industry to grow by 7.1% in real terms in 2025, driven by public and private sector investments in energy, industrial, and railway projects, coupled with government's plan to expand its nuclear capacity from 8.9GW in 2024 to 100GW by 2047.

According to the Ministry of Power, eight nuclear reactors, with the combined capacity of 6.6GW are under construction as of April 2025. The industry's growth in 2025 will also be supported by investments as part of the latest financial year (FY) 2025-26 Budget (April 1st, 2025 to March 31st, 2026), that was announced in February 2025. The FY2025-26 Budget outlines a total expenditure of INR50.7 trillion ($603 billion), with major allocations to transport sector, with INR2.9 trillion ($34.5 billion) allocated for the Ministry of Road Transport and Highways, and INR2.6 trillion ($30.9 billion) for the Ministry of Railways.

Growth over the forecasted period will also be driven by the Ministry of Rural Development's, Pradhan Mantri Awaas Yojana- Gramin (PMAY-G), under which the government is planning to construct 49.5 million homes in the country by March 2029. Recently, in mid-March 2025, Larsen & Toubro (L&T), Indian based construction company, secured its largest-ever residential contract, with a projected value between INR25 billion ($297.3 million) and INR50 billion ($594.6 million), from an Indian real estate company, the Brigade Group.

The project involves the construction of high-end residential and commercial towers in Hyderabad and Chennai. In Hyderabad, the "Brigade Gateway Residences" at Kokapet is expected to feature two luxury towers, while the "Brigade World Trade Centre" at Neopolis is expected to include a commercial tower over 200m tall, along with retail spaces and a five-star hotel.

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/uakvsw

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