The India construction market was valued at around USD 746 billion in 2025 and is projected to grow at a CAGR of ~8.6% from 2026 to 2035, potentially reaching around USD 1.70 trillion by 2035.
The industry is expected to continue its growth trajectory, reaching USD 2.13 trillion by 2030, with a CAGR of 12.1% from 2025 to 2030.
The construction industry in India is the second largest employer after agriculture, and it is therefore critical to the country’s economic stability.
Construction Industry is contributing 9% share in India’s GDP and it currently employs 51 Mn people in India.
The Construction industry market in India works across 250 sub-sectors with linkages across sectors.
Indian Real Estate sector is expected to reach a market size of USD 1 Tn by 2030. Its contribution to the country’s GDP is expected to be approximately 13% by 2025.
By 2030, more than 40% of the population is expected to live in urban India (33% today), creating a demand for 25 Mn additional mid-end and affordable units.
Under National Infrastructure Pipeline (NIP), India has an investment budget of $1.4 Tn on infrastructure — 24% on renewable energy, 18% on roads & highways, 17% on urban infrastructure, and 12% on railways.
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Saurabh Shankar
Trusted industry updates covering construction trends, material innovations, and market insights for professionals.