Construction Industry

Home/Industry Expertise/ Construction Industry


Statistics, news & updates: everything you need to know about the Construction Industry in India

Bright prospects for India’s Construction Industry-M+V Altios

Growth Drivers​

  • 100 Smart Cities Project planned.

  • Construction of 8,500 km of road by March 2022.

  • 11 Industrial corridors planned.

  • Population growth, urbanization, industrialization and rise in disposable income

Sub industries​

  • Building Equipment

  • Glass & glazing products

  • Highways, Street & Bridge Construction

  • Mechanical, Electrical & Plumbing equipment

  • Residential remodelers

  • Structural steel & pre-cast steel contractors

  • Roofing & Flooring products

  • Engineered wood & equipment


  • Highways: 24% of the national highway network in India is four-lane, with immense scope for improvement.

  • Airports: Upgrading and constructing new airports under Regional Connectivity Scheme.

  • Housing: India will need to construct 43,000 houses every day to achieve the vision of Housing for All by 2022.

  • Seaports: $82 billion planned investment in 574 projects by 2035.

  • There are 1291 project opportunities worth $12.89 billion in this sector.


  • High quality, high specification products cannot compete in a price-sensitive market like India.

  • Foreign companies rarely want to localize their offerings.

  • India has low-cost manpower, thus contractors and builders hesitate in investing in automated equipment.

    How we can help you:
    – Product-Pricing analysis

    – Strategies for – product/service localization

    – Market research to sell effectively


  • The construction industry consists of real estate and infrastructure construction and contributes around 9% to India’s GDP.​

  • It is the second-largest employer after agriculture, employing more than 51 million people.​

  • Sustainable development: India plans to spend $1.4 trillion on infrastructure 2019-23.​

  • There are huge opportunities in railways, energy, urban infrastructure, roadways and highways under the umbrella of the National Infrastructure Pipeline (NIP) with a budget allocation of $1.4 trillion on infrastructure under the next five years​

  • The Construction sector allows 100% Foreign Direct Investment under the automatic route. The countries investing in India’s construction industry are Singapore, Netherlands and USA.​

  • Indian Railways has the highest-ever planned CAPEX of $29.52 billion.​

  • The overall investment in Urban transformation increased by 627% between 2014-2021 (when compared to 2004-2014).​

  • $2.5 bn is being provided for PMAY- Urban [Pradhan Mantri Awaas Yojna (“Affordable Housing for All”)]. This will help lay the foundations for 1.56 million new houses and complete 1.8 million existing houses, creating additional 7.8 million jobs.​

National Infrastructure pipeline

Key Investment Opportunities​

  • Construction development in residential, retail, commercial and hospitality sectors, development of townships.​

  • Construction of roads, bridges, hotels, resorts.​

  • Technologies and solutions for smart, sustainable and connected cities and integrated townships.​

  • Technologies for the promotion of low cost and affordable housing.​

  • Green building solutions.​

  • Sustainable and environmentally friendly building materials.​

  • Training and skill development of construction sector workers.​

  • Urban water supply, urban sewage and treatment plants. ​

COVID Impact​

How has COVID affected the industry?

  • Increase in Digitalisation: 66% of the construction firms in India are eyeing digitalization by learning the best practices from the developed markets, e.g. Building Information Modelling (BIM) and its benefits.

  • Delays in projects because of labour shortage: Due to Covid, many urban projects were disrupted as up to 8.5 million workers were impacted by lockdowns.

  • Supply Chain Disruption: The projects dependent on specialised equipment, electronics and specialised materials are likely to be hit by the supply chain disruptions due to the enforcement of Force Majeure clauses in contracts.

  • Decrease in the industry output: Construction output dropped by 10% from 2020 levels.

Outlook for the Construction industry post-Covid

  • Increase in labour cost: The labour cost for skilled workers is expected to rise by 20-25% while for semi-skilled and unskilled workers the cost is expected to increase by 10-15%.

  • Revised SOP’s that take into account new health and sanitary norms: Standard operating procedures require social distancing, personal protective equipment and hygiene will drive up the project cost in short term.

  • Companies are considering hybrid arrangements: The work-from-home approach seems likely to continue throughout 2021 after India’s experienced a dreadful second wave of the pandemic. People have turned their home spaces into temporary home offices. We can expect a surge in demand for the home renovation, maintenance, and interior designing sector.

Key Players in India


  • L&T Engineering Construction & Contracts Division (ECC)
  • Larsen & Toubro Infrastructure Development Projects Limited (L&T IDPL)
  • Reliance Infrastructure Limited
  • Tata Projects Limited
  • AFCONS Infrastructure Limited
  • NBCC
  • IRCON International Limited
  • Shapoorji Pallonji & CO. Ltd.
  • GMR Infrastructure Limited
  • Jaiprakash Associates Limited
  • Nagarjuna Construction Company Limited
  • Hindustan Construction Company
  • DLF Limited


  • Leighton Welspun Contractors
  • The Trump Organization
  • Strabag
  • Bouygues
  • Power Construction Corp. of China
  • TOYO Engineering
  • Ascendas

Map Clusters

How we can help you

Contact Us For More Case Studies

    Case studies of Specific IndustrySpecific query about industry or M+V services

    I have read the privacy policy and my data can be used for registration and communication.

    Yes, I agree

    Clients Speak

    LI Ping HR Director /BHS Corrugated Machinery(Shanghai) Co.Ltd

    Strong support in recruitment
    M+V is very professional in India HR market. They were able to provide us with strong support in our recruitment. We are satisfied with their service.

    Falk Tzchichholz Sales Manager Export /Kjellberg Vertrieb GmbH

    Incubation solution
    With the incubation solution from Maier + Vidorno , we successfully placed our products in the Indian market and established valuable product market presence, which we can now build on further with our subsidiary

    Andreas Dauerbock Quality Assurance /Voestalpine Grobblech GmbH

    BIS registration project
    The BIS registration project went smooth and efficient. We are very satisfied with the way the documentation, communication and inspection on-site was handled from the Maier+ Vidorno Team. We are happy to recommend working with M+V in India - with the expert's advice you will need.

    Rajesh Nath Managing Director /VDMA India Services Pvt Ltd German Engineering Association

    Competent Partner
    India has great investment potential for foreign companies if you manage the highly complex business environment professionally. Our experience shows - Maier+Vidorno is a competent partner to efficiently set up and run business.

    Bjoern Becker Export Sales /Jumo GmbH & Co KG

    Market Presence and Profitability
    The cooperation of JUMO and Maier+Vidorno is a success story in India since 2008. Our sales, market presence and profitability in India shows constant growth. M+V knows about the challenges foreign companies face while doing business in India - and provides hands-on solutions.

    Rene Pluss CFO, Member of the Board /Regent Beleuchtungskorper AG

    Business Diagnostic and Implement Improvement
    Maier+Vidorno understands business challenges in the Indian business environment and provides solutions with the help of its experts. M+V has experience in running business diagnostics and implement improvement and expansion strategies in various industries in India.