Construction industry in India - statistics & facts
From the cave temples in Ellora, the perfect symmetry of the Taj Mahal areal, and gigantic stepwells, to the 80-ton stone crown of the Thanjavur temple: India hosts some masterpieces of engineering and construction. In recent years, this industry has extensively contributed to the economic development of the country. As India urbanized, there was a huge demand for residential and commercial buildings, infrastructure, transportation, and technology. Each of these segments required construction and contributed to the industry at large.
In urban areas, the focus has shifted towards meeting global standards. Furthermore, there was a close connection between the construction and the real estate industries. The construction of buildings served different purposes, such as residential, commercial, retail, or educational buildings.
The construction industry was labor-intensive and estimated to employ the third highest number of workers after the agriculture and domestic or household sectors . As of 2023, the sector employs over 70 million employees and is expected to increase to 100 million by 2030. Apart from a stable demand for qualified engineers, the sector also includes and semi- and unskilled workers who migrate from rural areas. These migrant workers, as they are often referred to, work hourly or daily wages, becoming the majority of the workforce within the sector. This, understandably, leads to constant debates and discussions about worker safety, minimum wages, and living conditions.
Looking ahead, more and more construction companies are embracing technological solutions to meet the rising demand for real estate infrastructure in the country. Many industry players have incorporated project management information systems, data analyticdecarbonization practicess, and off-site manufacturing into their projects. Additionally, are gaining prominence within the industry. With an innovative approach and climate consciousness, the industry is well-positioned for growth.
Building India – in many ways
Construction activities are essential for many industries, reaching a diverse range of segments. The rail and road infrastructure have been a main target area for governmental investments in recent years. Simultaneously, private investments have fueled the construction and modernization of retail infrastructure. In rural areas, big construction projects aimed to connect remote regions to basic infrastructure, such as roads, railways, electricity, and water supply. One significant project is the Udhampur-Baramulla Rail Link, aiming to connect Kashmir with the rest of India. It holds strategic importance as it primarily benefits Indian military personnel in the Kashmir valley.In urban areas, the focus has shifted towards meeting global standards. Furthermore, there was a close connection between the construction and the real estate industries. The construction of buildings served different purposes, such as residential, commercial, retail, or educational buildings.
Investments in the construction industry
Although some infrastructure segments like rail and road relied heavily on public financial resources, the construction industry was attractive for foreign direct investments. In the first quarter of 2023, its contribution to the Indian GDP amounted to nearly four trillion rupees, marking the highest quarterly contribution since 2018. In the financial year 2023, the gross value added from the industry increased by nine percent in comparison to the previous financial year, indicating positive momentum in the industry.The construction industry was labor-intensive and estimated to employ the third highest number of workers after the agriculture and domestic or household sectors . As of 2023, the sector employs over 70 million employees and is expected to increase to 100 million by 2030. Apart from a stable demand for qualified engineers, the sector also includes and semi- and unskilled workers who migrate from rural areas. These migrant workers, as they are often referred to, work hourly or daily wages, becoming the majority of the workforce within the sector. This, understandably, leads to constant debates and discussions about worker safety, minimum wages, and living conditions.
Looking ahead, more and more construction companies are embracing technological solutions to meet the rising demand for real estate infrastructure in the country. Many industry players have incorporated project management information systems, data analyticdecarbonization practicess, and off-site manufacturing into their projects. Additionally, are gaining prominence within the industry. With an innovative approach and climate consciousness, the industry is well-positioned for growth.
