Indian Construction
Indian Construction

Indian Construction Recap 2023: A Year of Growth and Momentum

The Economic Implications

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  • Overall growth: The construction sector witnessed an impressive 13.3% growth in the July-September quarter, its best performance in five quarters, contributing significantly to India’s overall economic growth of 7.6%.
  • Market size: The Indian construction market was valued at $701.7 billion in 2022 and is projected to reach $1.4 trillion by 2025, making it one of the fastest-growing markets globally.
  • Job creation: The sector is a major employment generator, providing jobs for millions directly and indirectly. Through Infrastructure projects,
  • Residential boom: Rising incomes, a severe housing shortage in big cities, and government initiatives like Pradhan Mantri Awas Yojana (PMAY) fuelled a surge in residential construction.
  • And there was a Another major projects which was completed or just started in the pervious year,
  • Infrastructure push: The government’s ambitious National Infrastructure Pipeline (NIP) with a $1.4 trillion investment budget for infrastructure development in sectors like roads, railways, energy, and urban development, provided a major boost.
  • Technology adoption: There’s an increasing focus on incorporating advanced technologies like Building Information Modelling (BIM), drones, and automation to improve efficiency and productivity.  
  • Bharatmala, a flagship project of the central government, has driven significant progress in India’s highways sector. With 13,800 km of new highways constructed, a 33% increase from the previous year, key projects include the Bharatmala Pariyojana—aiming for a vast 50,000 km highway network—and the Delhi-Mumbai Expressway, set to be India’s longest upon completion. These initiatives underscore the government’s commitment to robust infrastructure development and improved connectivity.
  • Mumbai International Airport: The new airport, under construction, is expected to be one of the busiest in the world with a capacity of 100 million passengers per year.
  • Dedicated Freight Corridors: The construction of dedicated freight corridors is transforming India’s logistics landscape, improving efficiency and reducing transportation costs.
  • Smart Cities Mission: The government’s initiative to develop 100 smart cities is fostering sustainable and technology-driven urban development.
  • The Indian construction sector is expected to create 12 million new jobs by 2030.
  • The government is promoting green building practices and energy-efficient technologies in construction.
  • India is increasingly attracting foreign investment in the construction sector.
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