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Construction industry in India - statistics & facts

From the cave temples in Ellora, the perfect symmetry of the Taj Mahal areal, 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.

Building India – in many different ways

Construction activities is essential for many industries, reaching a diverse range of segments. The rail and road infrastructure had been a main target area for governmental investments in recent years. Another trend had been private investments in the construction and modernization of a retail infrastructure. In rural areas, the aim of big construction projects was to connect remote regions to basic infrastructure, such as roads, railways, electricity, and water supply. In urban areas, on the other hand, this was focused increasingly on 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.

Although some infrastructure segments like rail and road relied heavily on public financial resources, the construction industry as such was attractive for foreign direct investments. In January 2021, its contribution to the Indian GDP amounted for over 2.7 trillion rupees. This was a recovery from the drop in construction activities from March to June 2020, due to the impact of the coronavirus (COVID-19) pandemic. However, the gross value added from the industry was estimated to drop by nearly 13 percent in financial year 2021.
The construction industry was labor-intensive and estimated to employ the highest number of workers after the agriculture sector. Apart from a stable demand of qualified engineers, the sector also includes semi and un-skilled workers that migrate from rural areas. These migrant workers, as they are often referred to, work hourly or daily wages, becoming the vast majority of the workforce within the sector. This, understandably, leads to constant debates and discussions about worker safety, minimum wages and living conditions.

Is the future of construction green?

As a result of a growing consciousness for environmental issues as well as the central government’s aim to develop its cities along global standards, the construction industry was expected to move towards an eco-friendly future. More and more major construction projects, like the latest terminal of New Delhi’s international airport, received certificate for “green constructions”. Two of the biggest governmental programs in recent years, the “Smart Cities Mission” and the “National Infrastructure Pipeline”, contained goals on sustainability, environmental protection and disaster risk management. These programs led to an increasing interaction between different stakeholders on these issues via tenders, conferences, and publications.

Key figures

The most important key figures provide you with a compact summary of the topic of "Construction industry in India" and take you straight to the corresponding statistics.

Construction material

Infrastructure investment

Interesting statistics

In the following 5 chapters, you will quickly find the 32 most important statistics relating to "Construction industry in India".

Construction industry in India

Dossier on the topic

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Construction industry in India - statistics & facts

From the cave temples in Ellora, the perfect symmetry of the Taj Mahal areal, 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.

Building India – in many different ways

Construction activities is essential for many industries, reaching a diverse range of segments. The rail and road infrastructure had been a main target area for governmental investments in recent years. Another trend had been private investments in the construction and modernization of a retail infrastructure. In rural areas, the aim of big construction projects was to connect remote regions to basic infrastructure, such as roads, railways, electricity, and water supply. In urban areas, on the other hand, this was focused increasingly on 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.

Although some infrastructure segments like rail and road relied heavily on public financial resources, the construction industry as such was attractive for foreign direct investments. In January 2021, its contribution to the Indian GDP amounted for over 2.7 trillion rupees. This was a recovery from the drop in construction activities from March to June 2020, due to the impact of the coronavirus (COVID-19) pandemic. However, the gross value added from the industry was estimated to drop by nearly 13 percent in financial year 2021.
The construction industry was labor-intensive and estimated to employ the highest number of workers after the agriculture sector. Apart from a stable demand of qualified engineers, the sector also includes semi and un-skilled workers that migrate from rural areas. These migrant workers, as they are often referred to, work hourly or daily wages, becoming the vast majority of the workforce within the sector. This, understandably, leads to constant debates and discussions about worker safety, minimum wages and living conditions.

Is the future of construction green?

As a result of a growing consciousness for environmental issues as well as the central government’s aim to develop its cities along global standards, the construction industry was expected to move towards an eco-friendly future. More and more major construction projects, like the latest terminal of New Delhi’s international airport, received certificate for “green constructions”. Two of the biggest governmental programs in recent years, the “Smart Cities Mission” and the “National Infrastructure Pipeline”, contained goals on sustainability, environmental protection and disaster risk management. These programs led to an increasing interaction between different stakeholders on these issues via tenders, conferences, and publications.

Interesting statistics

In the following 5 chapters, you will quickly find the 32 most important statistics relating to "Construction industry in India".

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