India’s construction output is on track to exceed US$1 trillion by 2027 in nominal terms, according to a forecast by market intelligence firm GlobalData.
The 2026-27 financial year’s capital expenditure allocation is 3.1% of India’s GDP, an 11.5% increase compared to the previous year’s budget.
The construction sector has been buoyed by spending from the 2026-27 budget on infrastructure, energy and domestic manufacturing, growing by 6.4%.
Dhananjay Sharma, Globaldata construction analyst, said: “While all six construction sectors, commercial, industrial, institutional, residential, infrastructure and energy & utilities, are showing sustained growth momentum, growth in infrastructure, energy and utilities and industrial … will help drive construction output.
“The government’s sustained focus on renewable energy, roads and railways and ‘Make in India’ initiatives will boost the construction industry and have a multiplier effect on the economy, helping it to achieve the mark of $5 trillion economy.”
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