From contraction to strong recovery
The first strict lockdown – from 24 March to 17 May – to prevent the virus outbreak largely brought construction initially to a halt – although construction work on some infrastructure projects was allowed from 20 April. However, many thousands of construction projects were delayed.
After experiencing one of the world’s tightest lockdowns, India’s construction industry made a strong recovery in the second half of 2020. The Government’s programmes to revive the economy through investment in infrastructure and housing supported the return to growth.
Long term growth story
Population growth, urbanisation, industrialisation and the rise in disposable income remain key growth drivers of the construction industry.
India’s construction industry includes both real estate (housing projects, building offices, hotels, leisure parks, etc.) and urban development projects (highway construction, building schools, transport and healthcare infrastructure, sewage treatment, water supply, power generation, etc.)
Given the country’s ambition to modernise infrastructure, advance its cities with ‘smart’ development, and boost employment, India is expected to become the third largest construction market in the world by 2025.