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Friday, December 06, 2013
Construction in India - Key Trends and Opportunities to 2017
The Indian construction industry increased in value at a CAGR of 15.10% during the review period. This growth was supported by the country’s expanding economy, increased government spending on public infrastructure, high urbanization and a supportive foreign direct investment (FDI) system.
Construction industry growth is expected to remain strong over the forecast period, as a result of the government’s commitment to improving the country’s infrastructure. The infrastructure, industrial and commercial construction markets collectively accounted for 74.2% of the total Indian construction industry in 2012. Consequently, the contribution of these three markets will be significant to the overall Indian construction industry growth over the forecast period.
The Indian construction industry’s output is expected to record a CAGR of 15.45% over the forecast period. The general outlook for construction activity during the five-year forecast period is positive. Construction activity in the residential market will be driven by demand side factors, such as the growth in nuclear families and the rising urbanization rate, as well as government support and state investment in affordable housing schemes.