Value of construction to India's GDP 2016-2022

India's construction industry was valued at over 2.7 trillion Indian rupees in January 2022. This was a significant increase compared to July 2020, when the value shrank due to the coronavirus (COVID-19) pandemic. The country’s construction and manufacturing industries were among the worst hit at the time. However, the industry seemed to recover quickly and reached pre-crisis level again. 

Developments in other producing industries

The coronavirus (COVID-19) pandemic and the national lockdown from March to May 2020 had a differing impact on the producing sectors of the Indian economy. Similar to the construction industry, manufacturing reportedly shrunk in the second quarter of 2020. The agriculture sector did not witness a significant change, even showing higher employment numbers as a result of migrant workers returning to their homes. The utilities industry showed fluctuating values with a peak in the third quarter of 2020.

 

Impact of the construction industry

Infrastructure construction had been at the core of economic development in India in recent years. Between financial year 2016 to 2020, the manufacturing industry attracted the highest value of investments. The inflow of foreign direct investments into the infrastructure industries fluctuated over the last five years and amounted for around two billion U.S. dollars in financial year 2020.