Infrastructure Industry in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Infrastructure Development in India and the market is segmented by the Infrastructure segment (Social Infrastructure, Transportation Infrastructure, Extraction Infrastructure, Manufacturing Infrastructure, and Utilities Infrastructure), and By Key Cities (Mumbai, Bangalore, Delhi, Hyderabad, and Other Cities). The report offers market size and forecast in values (USD billion) for all the above segments.

Infrastructure Sector in India Market Size

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India Infrastructure Sector Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 204.06 Billion
Market Size (2029) USD 322.27 Billion
CAGR (2024 - 2029) 9.57 %
Market Concentration Low

Major Players

India Infrastructure Sector Major Players

*Disclaimer: Major Players sorted in no particular order

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Infrastructure Sector in India Market Analysis

The India Infrastructure Sector Market size is estimated at USD 204.06 billion in 2024, and is expected to reach USD 322.27 billion by 2029, growing at a CAGR of 9.57% during the forecast period (2024-2029).

  • Given the importance of the infrastructure sector for the economic development of a country, reports on cost overruns and delays resulted in disputes in recent years. Nevertheless, the construction industry and infrastructure projects looked towards an economic revival after the coronavirus (COVID-19) pandemic. These expectations were canalized through the National Infrastructure Pipeline (NIP), one of the biggest governmental initiatives in recent years.
  • The backbone of the Indian economy, the infrastructure sector, is essential to improving the nation's overall development. Other industry sub-segments include telephony, power, roads, ports, etc. India has to enhance its infrastructure to reach its 2025 economic growth target of USD 5 trillion. The National Infrastructure Pipeline (NIP), along with other initiatives like "Make in India" and the production-linked incentives (PLI) program, was launched by the government to promote the expansion of the infrastructure industry. Historically, more than 80% of the money spent on infrastructure in the country has gone into expenditures related to transportation, electricity, water, and irrigation. Significant infrastructure development requires a substantial inflow of investor funds.
  • The Indian economy has benefitted considerably from the infrastructure sector. It is a diverse field that passes through many industries including construction, urban and rural development, real estate, telecommunication, and transport. It contributed a share of about nine percent to India's GDP.
  • With the introduction of the "Infrastructure for Resilient Island States" program in November 2021, India had a significant opportunity to improve the lives of other vulnerable nations around the globe. Government plans to invest about INR 102 lakh crore in infrastructure projects by 2024-25. During the fiscals 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) amount to around 70% of the projected capital expenditure in infrastructure in India by IBEF.

Infrastructure Sector in India Market Trends

This section covers the major market trends shaping the India Infrastructure Sector Market according to our research experts:

Increase in road infrastructure investment to propel the market growth

According to the Economic Survey 2021-22, the country's road network has grown significantly in the current fiscal year compared to prior ones. In 2020-21, 13,327 km of roads were built, compared to 10,237 km in 2019-20, representing an increase of 30.2% over the previous year. 3,824 km of new roads were built in 2021-2022 (up till September).

With a total length of 5.89 million kilometers, India has the second-largest road network in the world. 90% of India's total passenger traffic uses the road network for travel, and it moves 64.5% of all the commodities in the nation. Road travel has gradually increased as the country's cities, towns, and villages become more connected. The sale of autos and freight transportation by road is expanding quickly in India.

The Indian government has planned to build highways reaching 313 kilometers for Rs. 11,000 crores to overhaul the road infrastructure in Punjab, Haryana, and Rajasthan. As of March 2022, the transfer from the National Investment Fund (NIF) was pegged at Rs. 20,000 crores (USD 2.61 billion).

The Ministry of Road Transport and Highways has been given almost INR 68,000 crore more in funding for 2022-23 than was initially planned for 2021-22. Of all the ministries in 2022-2023, this is the ministry with the most significant rise in absolute terms. This extra funding has been allocated towards NHAI investments almost entirely. After several years, NHAI won't need to borrow any money and will only use funds from the budget. The overall debt owed by NHAI as of November 2021 was INR 3.38 lakh crore. This is around 150 per cent more than what will be given to NHAI in 2022-2023.

According to Ministry of Road Transport and Highways, in financial year 2022, the length of national highways awarded in India was around 12.7 thousand kilometers, while the length that was constructed was at 10.46 thousand kilometers for the same time frame. In fiscal year 221, the length of national highways constructed reached the peek during the presented period at 13.3 thousand kilometers.

India Infrastructure Sector Market - Length of national highways awarded and constructed across India

Increase in FDI to drive the infrastructure market in India

The Financial Year 2021-2022 had the biggest yearly FDI inflow of USD 83.57 billion to India. In comparison to the greatest annual FDI inflow ever reported during the financial year 2021-22, which exceeded last year's FDI by USD 1.60 billion despite the military action in Ukraine and COVID-19 pandemic, India's FDI inflow in 2014-2015 was just USD 45.15 billion. Since FY03-04, when FDI inflows totalled just USD 4.3 billion, India has experienced a 20-fold rise in FDI inflows.

Additionally, India is quickly becoming a favoured destination for foreign manufacturing investments. When compared to the prior FY 2020-21, FDI equity inflow into the manufacturing sector surged by 76% in FY 2021-22 (USD 21.34 billion). The patterns in foreign direct investment into India shown below confirm that it is a popular choice among international investors. It should be noted that the FDI inflow reported before Covid (February 2018 to February 2020: USD 141.10 billion) has increased by 23% post-Covid (March 2020 to March 2022: USD 171.84 billion).

For the fiscal year 2021-2022, "Singapore" is at the top of the list of top investor countries for FDI Equity inflow, followed by the United States (18%) and Mauritius (16%). Computer Software & Hardware have emerged as the main recipient sector of FDI Equity inflow for FY 2021-22 with a share of around 25%, followed by the Services Sector (12%) and the Automobile Industry (12%), respectively. Karnataka (53%), Delhi (17%), and Maharashtra (17%) are the top recipient states of FDI equity inflow in the sector "Computer Software & Hardware" in the fiscal years 2021-22. With a 38% share of the overall FDI equity inflow reported during the FY 2021-22, Karnataka is the leading receiving state, followed by Maharashtra (26%) and Delhi (14%).

Multilateral institution Asian Development Bank (ADB) announced a USD 100 million in funding for the Indian infrastructure sector through the government-promoted NIIF. Foreign investments are crucial for India as the country for overhauling its infrastructure sector such as ports, airports, and highways to boost growth. Infrastructure is one of the sectors which gets the highest foreign direct investment (FDI). Schemes such as 'Housing for all' and 'Smart Cities Mission' have benefitted from these investments. Saudi Arabia is looking to make investments in India potentially worth USD 100 billion in the areas of energy, refining, petrochemicals, infrastructure, agriculture, minerals, and mining.

India Infrastructure Sector Market - Total amount of foreign direct investment inflows into India

Infrastructure Sector in India Industry Overview

The India Infrastructure Sector Market is less competitive and partially fragmented, with major local and international players. Key players in the market are Larsen & Toubro Limited, Tata Projects Ltd, Hindustan Construction Co. Ltd, Simplex Infrastructures Ltd, Jaiprakash Associates Ltd, and many others. The market is fragmented, as many new entrants focus on bagging projects to strengthen their positions among the market's key players.

Infrastructure Sector in India Market Leaders

  1. Larsen & Toubro Limited

  2. Tata Projects Ltd

  3. Hindustan Construction Co. Ltd

  4. Simplex Infrastructures Ltd

  5. Jaiprakash Associates Ltd

*Disclaimer: Major Players sorted in no particular order

India Infrastructure Sector Concentration
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Infrastructure Sector in India Market News

September 2022: Hero MotoCorp, a manufacturer of two-wheelers, has joined up with Hindustan Petroleum Corporation Limited (HPCL), a Maharatna Company in the oil and gas industry, to build India's electric vehicle (EV) charging infrastructure. According to a statement by the corporations, the effort would see the establishment of charging infrastructure for two-wheeled electric cars across the nation, assisting mass mobility's transition to an electrified future.

May 2022: To build a platform for green digital infrastructure, Ivanhoe Cambridge, Bain Capital, and Lodha Group established a collaboration to spend USD 1 billion in India. While Lodha will oversee the "construction, operations, and management of the assets,'' they will each control a part of the real estate. With a USD 1 billion investment, the platform will build 30 million square feet of operational space to support India's digital economy.

Infrastructure Sector in India Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKETINSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Technological Innovations in the industry

    7. 4.7 Impact of Government Regulations and Initiatives on the Industry

    8. 4.8 Impact of COVID -19 on the market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Infrastructure segment

      1. 5.1.1 Social Infrastructure

      2. 5.1.2 Transportation Infrastructure

      3. 5.1.3 Extraction Infrastructure

      4. 5.1.4 Manufacturing Infrastructure

      5. 5.1.5 Utilities Infrastructure

    2. 5.2 By Key Cities

      1. 5.2.1 Mumbai

      2. 5.2.2 Bangalore

      3. 5.2.3 Delhi

      4. 5.2.4 Hyderabad

      5. 5.2.5 Other Cities

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Larsen & Toubro Limited

      2. 6.2.2 Tata Projects Ltd

      3. 6.2.3 Hindustan Construction Co. Ltd

      4. 6.2.4 Simplex Infrastructures Ltd

      5. 6.2.5 Jaiprakash Associates Ltd

      6. 6.2.6 Gammon India Ltd

      7. 6.2.7 Nagarjuna Construction Company Limited (NCC Ltd)

      8. 6.2.8 Shapoorji Pallonji & Co. Ltd

      9. 6.2.9 Lanco Infratech Limited

      10. 6.2.10 Reliance Infrastructure Limited*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. APPENDIX

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Infrastructure Sector in India Industry Segmentation

Infrastructure is the backbone of domestic and international commerce and industrial and agricultural production. It is the fundamental organizational and physical framework necessary to operate a firm successfully. Infrastructure sector focuses on major infrastructure sectors such as power, roads and bridges, dams and urban infrastructure.

The India Infrastructure Sector Market is segmented by the Infrastructure segment (Social Infrastructure, Transportation Infrastructure, Extraction Infrastructure, Manufacturing Infrastructure, and Utilities Infrastructure), and By Key Cities (Mumbai, Bangalore, Delhi, Hyderabad, and Other Cities). The report offers market size and forecast in values (USD billion) for all the above segments. A complete background analysis of the India Infrastructure Sector Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.

By Infrastructure segment
Social Infrastructure
Transportation Infrastructure
Extraction Infrastructure
Manufacturing Infrastructure
Utilities Infrastructure
By Key Cities
Mumbai
Bangalore
Delhi
Hyderabad
Other Cities
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Infrastructure Sector in India Market Research FAQs

The India Infrastructure Sector Market size is expected to reach USD 204.06 billion in 2024 and grow at a CAGR of 9.57% to reach USD 322.27 billion by 2029.

In 2024, the India Infrastructure Sector Market size is expected to reach USD 204.06 billion.

Larsen & Toubro Limited, Tata Projects Ltd, Hindustan Construction Co. Ltd, Simplex Infrastructures Ltd and Jaiprakash Associates Ltd are the major companies operating in the India Infrastructure Sector Market.

In 2023, the India Infrastructure Sector Market size was estimated at USD 186.24 billion. The report covers the India Infrastructure Sector Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Infrastructure Sector Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Infrastructure in India Industry Report

Statistics for the 2024 Infrastructure in India market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Infrastructure in India analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Infrastructure Industry in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)