India's construction industry will continue to expand over the forecast period (2016-2020), with investments in residential, infrastructure and energy projects continuing to drive growth.
Various government flagship programs - including 100 Smart Cities Mission, Housing for All, Atal Mission for Urban Rejuvenation and Transformation (AMRUT), Make in India and Power for All - will be the growth drivers.
The industry's output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 5.65% over the forecast period; up from 2.95% during the review period (2011-2015).
There are certain challenges associated with India's construction industry outlook. Limited funding, slow policy reforms and a weak currency are factors that will continue to limit the growth potential during the early part of the forecast period.
Due to industrialization, urbanization, a rise in disposable income and population growth the demand for construction services is set to rise. Government efforts to improve the country's residential and transport infrastructure will also support growth.
Timetric's Construction in India - Key Trends and Opportunities to 2020 report provides detailed market analysis, information and insights into the Indian construction industry including:
- Indian construction industry's growth prospects by market, project type and construction activity
- Analysis of equipment, material and service costs for each project type in India
- Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Indian construction industry
- Profiles of the leading operators in the Indian construction industry
- Data highlights of the largest construction projects in India
This report provides a comprehensive analysis of the construction industry in India. It provides:
- Historical (2011-2015) and forecast (2016-2020) valuations of the construction industry in India using construction output and value-add methods
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type
- Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
- Analysis of key construction industry issues, including regulation, cost management, funding and pricing
- Detailed profiles of the leading construction companies in India
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- The construction industry will be supported by the government's plan to transform urban India. Under the 100 Smart Cities Mission, the government aims to provide a more sustainable and clean environment by 2020. In total, INR480.0 billion (US$7.6 billion) has been allocated.
- In a bid to rehabilitate the slums, provide housing at affordable prices and ensure good quality homes, the government is focusing on social housing development. It launched the Housing for All by 2022 program in 2015, under which it set a target to construct 20.0 million social housing units across the country by 2022.
- To promote comprehensive urban development and support economic growth, the government introduced AMRUT in 2015 to transform the country's urban areas. The main purpose of AMRUT is to provide basic infrastructure services such as water supply, sewerage connection, green spaces, parks and transportation facilities. The program will be implemented in 500 towns and cities.
- Demand for electricity is projected to increase over the forecast period, due to industrialization, urbanization, population growth and per capita energy consumption. To reduce the country's reliance on imported energy, the government is developing its renewable energy infrastructure. It aims to generate 175GW of electricity through renewable sources by 2022.
- To improve the country's infrastructure, the government will offer more road infrastructure projects under the PPP model. According to the Ministry of Road Transport and Highways, the government plans to offer 100 highway construction projects to the private sector in 2016.