(MENAFN- GlobeNewsWire - Nasdaq) The Indian construction market presents significant opportunities in residential, commercial, institutional, industrial, and infrastructure sectors. Key drivers include government initiatives like PMAY and Make in India, rising investments, foreign direct investments, technological advancements, and a push for sustainability. Challenges such as material costs, labor shortages, and regulatory delays persist, but innovation, policy support, and skill development programs are paving the way for growth and modernization.

Dublin, Nov. 13, 2025 (GLOBE NEWSWIRE) -- The "India Construction Industry Databook Series - Market Size & Forecast by Value & Volume, 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure, City-Level Construction by Value and Cost Structure, Q4 2025 Update" report has been added to ResearchAndMarkets's offering.
Construction market in India is expected to grow by 11.2% on annual basis to reach INR 25.31 trillion in 2025.
The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 14.2%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 8.8% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of INR 22.77 trillion to approximately INR 39.10 trillion.
This report provides a detailed data-centric analysis of the construction sector in India, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.
It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors. The analyst's research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Key Insights

India Residential Construction
The Indian residential construction industry is undergoing a significant transformation driven by macroeconomic factors, government initiatives, and emerging industry trends. While inflation and rising material costs are increasing housing prices, the demand for affordable housing under PMAY remains strong, especially in tier-2 and tier-3 cities. At the same time, technological advancements such as AI-driven property management and modular construction methods are streamlining project execution.

However, bureaucratic delays and regulatory changes continue to pose challenges, slowing the progress of several projects and widening the housing demand-supply gap. Despite these challenges, the sector is seeing a steady influx of investment, supported by a?79,000 crore allocation in the Union Budget 2024 and growing foreign direct investment in real estate. The government's push for smart cities, sustainability, and ease of doing business reforms is shaping the future of residential construction, with an increasing focus on green buildings and energy-efficient housing solutions. Addressing the skilled labor shortage through vocational training programs and regulatory improvements will be essential to sustaining industry growth. With continued innovation, investment, and policy support, India's residential construction sector is poised for long-term expansion and modernization.

India Commercial Construction
The commercial construction sector in India is undergoing a transformation driven by rising demand for mixed-use spaces and Grade-A office developments. However, inflation and high raw material costs put financial pressure on developers, while regulatory delays hinder project execution. Despite these challenges, the demand for premium office spaces, retail centers, and IT hubs remains strong, particularly in tier-1 and tier-2 cities.

Government initiatives such as Make in India and Startup India fuel office space demand, supported by tax incentives for Real Estate Investment Trusts (REITs) and foreign direct investment. Additionally, sustainability trends, including solar-powered commercial buildings and AI-driven property management, are shaping the future of commercial construction. Addressing the skilled labor shortage and improving regulatory efficiency will be critical to sustaining growth and ensuring long-term success in India's commercial real estate sector.

India Institutional Construction
The institutional construction sector in India is poised for long-term growth, driven by significant government investments in healthcare, education, and research infrastructure. The expansion of AIIMS hospitals, IITs, IIMs, and PM SHRI schools highlights the country's commitment to modernizing institutional facilities. However, rising construction costs, labor shortages, and regulatory delays continue to challenge project timely execution. Addressing these issues through streamlined approval processes and workforce development programs will be essential for sustaining momentum in the sector.

Public-private partnerships (PPPs) are crucial in accelerating institutional construction, particularly in specialty hospitals and research facilities. Additionally, sustainability initiatives such as solar-powered campuses and green-certified buildings are receiving preferential funding and regulatory support. While budget constraints and compliance costs remain concerns, leveraging smart infrastructure and green building strategies can enhance operational efficiency and reduce long-term expenses. India's institutional construction industry can achieve sustainable and scalable growth by focusing on collaborative efforts between the public and private sectors.

India Industrial Construction
India's industrial construction sector is rapidly expanding, fueled by government-backed initiatives such as Make in India 0 and the Production Linked Incentive (PLI) scheme. Investments in semiconductor fabrication, EV manufacturing, and green hydrogen plants are positioning India as a global hub for high-tech and sustainable industries. However, challenges such as rising material costs, regulatory complexities, and land acquisition delays continue to impact project execution timelines and overall industrial growth.

Addressing these structural issues will be crucial to maintaining momentum in large-scale industrial developments. Public-private partnerships (PPPs) and foreign direct investment (FDI) from major global corporations are key in accelerating industrial expansion. Additionally, sustainability-driven incentives and smart manufacturing technologies are transforming the sector, enabling greater efficiency and environmental compliance. While workforce shortages in precision manufacturing and automation remain a pressing challenge, ongoing skill development programs under Skill India aim to bridge this gap. Collaborating efforts between government and industry stakeholders will sustain India's industrial growth, enhance global competitiveness, and ensure long-term economic benefits.

India Infrastructure Construction
India's infrastructure construction industry is experiencing rapid growth, driven by strong government investment in transport, energy, and urban development projects. Large-scale initiatives such as the Mumbai-Ahmedabad High-Speed Rail, Bharatmala Project, and Gati Shakti Master Plan enhance connectivity and logistics efficiency. However, rising material costs, supply chain disruptions, and labor shortages continue to pose challenges, impacting project timelines and overall construction budgets.

Addressing these bottlenecks through policy reforms, skill development programs, and technology adoption will be critical to sustaining long-term infrastructure growth. The sector also sees increasing public-private partnerships (PPPs) and foreign direct investment (FDI) in smart infrastructure, renewable energy, and transit hubs, supporting India's vision for sustainable urban development. Regulatory hurdles and financing constraints remain key challenges, but government-backed incentives, fast-track approvals, and green financing mechanisms are helping mitigate risks. With a strong focus on digital infrastructure, smart city development, and energy-efficient public projects, the industry is set to play a crucial role in India's economic expansion and urban transformation in the coming years.

Report Scope: This report provides market size and forecast across 40+ construction segments for ten years from 2020-2029 in India

• India Economic Indicators
• India Top Cities Construction Data
• India Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• India Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• India Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• India Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• India Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
• India Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• India Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms
• India Infrastructure Construction Sectors: 10-year market size & forecast in value terms
• India Green Infrastructure Construction: 10-year market size & forecast in value terms
• India Construction Cost Structure Analysis: 10-year market size & forecast in value terms

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