The process of infrastructure creation is intricately linked to construction. Therefore, the policy emphasis on developing new infrastructure is expected to drive a multi-year growth trend for the construction industry.
Increased construction activity is expected to have a positive impact on employment, driving demand for construction equipment and materials such as steel, cement, concrete and geosynthetics. This also represents a significant financial opportunity since construction constitutes a large cost component in projects, and the roll-out of the National Infrastructure Pipeline and PM Gati Shakti Master Plan ensures a vast portfolio of projects.
The construction industry is also undergoing a significant transformation. The need for sustainability and reduced carbon impact is leading to changes in the mix of materials and equipment towards greener designs. The demand for rapid digitalisation has also led to the development of a new focus area or vertical for information technology.
Digital construction has transformed the way infrastructure projects are executed by streamlining design and building processes, improving safety and optimising asset management systems. The deployment of digital construction technologies improves both planning and implementation, reducing time and cost overruns. These technologies are now being deployed across multiple sectors, ranging from urban water and sewage management to airports, ports, railways, roads and tunnels. A key benefit is the easy sharing of data across verticals with everything being progressively digitised and data being stored on the cloud. This could be a big force-multiplier in the future, resulting in efficiency gains across the entire economy.
The construction equipment industry recorded an overall growth of 26 per cent in sales volumes in 2022-23, with increased demand across segments such as earthmoving equipment, material handling equipment, material processing equipment and concrete equipment. There is a trend towards higher mechanisation and digitalisation of equipment with the deployment of intelligent control systems, telematics, automation, internet of things, etc. Technologies such as LiDAR and drones are now commonly used for accurate surveying and mapping of sites, aiding in topography analysis and data collection. Building information modelling, artificial intelligence and machine learning have also improved design and visualisation.
In order to improve energy efficiency and sustainability, it is crucial to use green processes for cement and steel production to reduce carbon emissions. There has also been a steady uptake in the use of sustainable materials, such as modified bitumen, plastic waste, eco-friendly concrete, geosynthetics and fly ash for road construction. In 2022-23, for instance, over 2,500 km of national highways were constructed with plastic waste. There is an increased preference for concrete instead of asphalt to improve the durability of roads, and the railway sector is exploring recyclable materials such as steel and aluminium for building tracks and other structures. Green steel, green cement, fibreglass, fly ash, bamboo, recycled plastic wastes, etc., are being used for airport construction. Metro rail corporations are also adopting sustainable measures on a large scale, with a strong focus on the use of green energy across sectors.
The future is bright for the construction sector, poised for rapid multi-year growth driven by an extensive pipeline of projects. The industry must prioritise upskilling and explore optimal ways to achieve project completion targets, while ensuring environmental sustainability and deploying new technology to reduce timelines and costs. This will position the construction industry not only as the single largest contributor to GDP, but also as the single largest source of employment outside of agriculture.