Construction is the keystone of infrastructure development. It is the largest employer of semi-skilled labour and the largest consumer of materials such as steel and cement. The construction sector is also rapidly becoming one of the largest users of new digital technologies, innovative techniques and new-age, low-carbon materials.
The strategic importance of increasing infrastructure capacities across sectors cannot be overstated as infrastructure serves as a multiplier of economic growth. Apart from this, construction itself has several positive economic externalities.
The National Infrastructure Pipeline and flagship programmes such as Bharatmala and Sagarmala Pariyojana, the PM Gati Shakti National Master Plan, dedicated freight corridors, high speed rail systems, and the development of airports, ports and urban rail transit systems are creating many opportunities for construction in India. A new area of opportunity is the rapid expansion of India’s data centre capacity, which requires thoughtful and innovative design. Apart from this, the housing and commercial real estate industries are driving demand for construction.
With growing concerns about sustainability and the introduction of policies aligned with this objective, the sector is rapidly changing its technological profile. India aims to reduce its carbon intensity by about a third by 2030, and achieve net zero carbon emissions by 2070, with construction leading this effort.
New regulations are driving the uptake of all-electric equipment to reduce fossil fuel usage. The construction equipment industry, despite witnessing moderate growth in 2024-25, anticipates an explosive growth period. Industry insiders estimate that the construction equipment industry, currently worth about $10 billion, will grow to around $25 billion by 2030. There could be a substantial export component in this growth particularly as the PLI schemes encourage the domestic production of many critical components.
Renewable energy is also tied to this effort of eco-sustainability. As airports, ports and railways adopt sustainable design and construction practices, the construction industry has also changed its approach. The use of prefabricated construction materials has also accelerated project completion, while incorporating sustainable materials in prefabs has reduced the carbon footprint significantly.
Digitalisation and the adoption of technologies such as building information modelling at the design stage have further compressed project timelines. The integration of digital technologies such as internet of things, augmented and virtual reality, drones, 3D printing, digital twins, GIS and LIDAR at the survey stage has accelerated processes, enhancing efficiency.
Over the past two decades, infrastructure policies have evolved to address many issues and challenges, although new challenges will keep emerging. The central and state governments have also provided significant support. It is now up to the private sector to leverage the opportunities that continue to emerge.