India Infrastructure Sector Market Size (2024 - 2029)

India Infrastructure Sector 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).

India's aspirations to attain developed nation status by 2047 heavily rely on bolstering its infrastructure, a pivotal driver for creating livable, climate-resilient, and inclusive cities that fuel economic growth. This commitment is evident in the government's allocation of 3.3% of GDP to the infrastructure sector in FY2024, with a notable emphasis on transport and logistics.

Within the transport sector, roads and highways claim the lion's share, trailed by railways and urban public transport. The government has set ambitious goals, aiming to construct a 2 lakh-km national highway network by 2025, expand airports to 220, operationalize 23 waterways by 2030, and establish 35 Multi-Modal Logistics Parks (MMLPs).

In FY2023, the budgetary allocation for infrastructure-related ministries stood at approximately INR 3.7 lakh crore. This figure saw a notable increase, reaching INR 5 lakh crore in FY24. This surge in funding presents lucrative investment opportunities for the private sector, particularly in the diverse transport sub-segments.

As the transport sector grapples with sustainability concerns, the private sector is well-positioned to leverage the favorable policy landscape and ramp up its infrastructure investments.

Public-private partnerships (PPPs) have emerged as a pivotal avenue for private sector involvement, notably in projects spanning airports, ports, highways, and logistics parks across India. While the central government and states have extended support through various schemes, India's ambition of becoming a USD 5 trillion economy by 2025 necessitates a substantial impetus from PPPs.

India Infrastructure Sector 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. The infrastructure sector focuses on major infrastructure sectors such as power, roads and bridges, dams, and urban infrastructure.

The Indian infrastructure market is segmented by the infrastructure segment (social infrastructure, transportation infrastructure, extraction infrastructure, manufacturing infrastructure, and utility infrastructure) and by key states (Maharashtra, Karnataka, Delhi, Telangana, and Other States). The report offers market size and forecast values (USD) for all the above segments.