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 – 2019 budget, the government increased its expenditure towards infrastructure development by 20.9% from INR4.9 trillion (US$75.9 billion) in the financial year 2017 – 2018, to INR6 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.
“India’s construction industry is expected to continue to expand over the forecast period (2019 – 2023), driven by the government’s efforts to develop the country’s infrastructure and improve the housing sector,” said Dhananjay Sharma, Construction Analyst at GlobalData. “GlobalData’s latest estimate of India’s total construction project pipeline, including all mega projects with a value about US$25 million, stands at INR82.5 trillion (US$1.2 trillion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 60.7% of the pipeline value being in projects in the pre-planning and planning stages as of February 2019.”
Read the article online at: https://www.worldcement.com/indian-subcontinent/14032019/indias-construction-industry-regains-growth-momentum/