Construction accounts for 9 per cent of our GDP, being the largest employer outside of agriculture. The sector is also the largest consumer of steel, cement, copper, etc. The last few budgets have supported the creation of more infrastructure capacity, which has inevitably led to more projects and thus, more construction activity. The recent reworking of GST has reduced material costs, while single-window clearances have sped up permissions.
By 2030, India may be the world’s second-largest construction market, assuming policy momentum and budget allocations are maintained and private investment kicks in. In turn, this will create demand for equipment and digital tools, boosting policies such as Make in India and production-linked incentive schemes. A focus on self-reliance in making capital-intensive, heavy-duty equipment, and sophisticated components has improved the supply chain. It has translated into a trend of exports, with Indian equipment finding takers abroad (EPC players are also bidding for overseas projects).
Given the scale of build-outs across airports, highways, rail networks, ports, metros, urban water systems, etc., there is intense pressure on resources and ecosystems, making sustainability a priority. This has led to shifts in how assets are conceptualised, built and operated, as well as an imperative for best practices such as adopting green materials, digital tools and energy-efficient equipment. Given the scale, India could be a pioneer in many areas.
Digital tools for information modelling and project monitoring are now mainstream. The automation of equipment and deployment of artificial intelligence (AI) across workflows is catching on. Speed and productivity have improved with telematics, GPS and internet of things (IoT). New machinery that is electrical or hybrid helps reduce emissions. Modular construction and 3D printing are streamlining material use and reducing pollution on-site.
Digital technologies, including AI, can boost productivity by 20-30 per cent across the asset life cycle, starting from the planning stage. The use of drones and IoT is becoming commonplace. AI is also being deployed for operations and maintenance, inspection, monitoring, and performance tracking in all sorts of scenarios such as energy management in metros, urban water and waste management, and traffic flow management. Even so, AI and digital adoption is still uneven, due to shortages of trained manpower and data-related constraints.
The green impact can be seen across sectors. In airports, for instance, the use of low-carbon cement, clever designs for water and waste management, renewable energy, and digital management platforms is notable.
Sustainable road construction is driven by regulations that link environmental performance with project approvals. The Ministry of Road Transport and Highways has mandatory provisions for the use of fly ash, steel slag and solid waste, including plastics. Similarly, port construction is driven by the Harit Sagar-Green Port Guidelines, which mandate water efficiency, pollution control and energy optimisation. The railways are using precasts. Urban water and waste management is improving with modular treatment plants, energy-efficient pumping and solar integration. New energy-efficient technologies developed at premier engineering institutions are being adopted in many cases.
Prolonged geopolitical tensions and climate-related risks could slow the momentum, temporarily. However, India is a huge and growing domestic market, and construction will continue to play a critical role in development.