India’s construction industry regains growth momentum
According to GlobalData, the Indian construction industry regained its growth momentum in 2018, 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 US$464.9 billion in 2017, to US$505.7 billion in 2018.
GlobalData’s ‘Construction in India – Key Trends and Opportunities to 2023’ report reveals that India’s construction industry is expected to grow at a compounded annual average of 6.44% to US$690.9 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 2018-19 budget, the government increased its expenditure towards infrastructure development by 20.9% from Rs 4.9 trillion (US$75.9 billion) in the financial year 2017-2018, to Rs 6 trillion (US$89.2 billion).
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 over the forecast period. It is also predicted that greater demand for residential construction will be created over the forecast period, due to the country’s rising population, urbanisation, and positive developments in regional economic conditions.