Indian Construction Industry Output to Exceed $1 Trillion in 2027: GlobalData Report
GlobalData’s latest report, “India Construction Market Size, Analysis by Sector, Competitive Landscape and Forecast to 2030,” reveals that the capital expenditure allocation in FY2026-27 is equivalent to 3.1% of the GDP and marks an increase of 11.5% compared to the expenditure of INR 10.9 trillion ($121.6 billion) in the revised estimates for the FY2025-26 Budget. The continued focus on infrastructure and domestic manufacturing in the 2026-27 budget will provide a significant boost to the Indian construction industry.
The Indian construction industry is predicted to record an average annual growth rate of 6% between 2027 and 2030, supported by investments in manufacturing, infrastructure and energy projects, coupled with the government’s aim to construct 500GW of non-fossil fuel electricity generation capacity by 2030. Growth will also be supported by the government’s plan to add 17,000km of access-controlled expressways by 2033. Under the new plan, the government aims to construct a new high-speed road network worth INR11.2 trillion ($124.9 billion) by 2033. In January 2026, the government announced that it created a three-year Public private partnership (PPP) project pipeline involving 852 projects worth INR17 trillion ($189.6 billion). Furthermore, in November 2025, the Indian government approved INR200 billion ($2.2 billion) worth of highway projects for Gujarat under the National Highways Authority of India (NHAI). Key stretches such as Ahmedabad to Mumbai, Rajkot to Gondal to Jetpur, and Ahmedabad to Udaipur are being prioritized for expedited upgrades, widening, and expansion. The state’s highways feature four and six-lane carriageways and advanced logistics infrastructure, with ongoing upgrades including expressway construction, highway widening, resurfacing, and the deployment of smart traffic systems to ensure efficient freight movement, tourism, and rural accessibility.
Dhananjay Sharma, Construction Analyst at GlobalData, commented, “While all six construction sectors (commercial, industrial, institutional, residential, infrastructure and energy & utilities) are showing sustained growth momentum, growth in infrastructure, energy and utilities and industrial sector will help drive construction output. The government’s sustained focus on renewable energy, roads and railways and “Make in India” initiatives will boost the construction industry and have multiplier effect on the economy, helping it to achieve the mark of $5 trillion economy.”
GlobalData expects the construction industry in India to expand in real terms by 6.4% in 2026, supported by investments in transport infrastructure and energy projects, coupled with investments as part of FY2026-27 budget.
Sharma concluded, “The FY27 budget aims for steady economic growth in an uncertain global economy that has been affected by the recent tariff wars and further emphasizes the government’s initiatives in the infrastructure sector. The government's focus on improving the ease of doing business is also expected to enhance the business environment and attract local and foreign investors towards the construction industry.”
Published on:
30 April 2026
Share:
We Value Your Comment
