Second largest FDI recipient in India


Investment in Construction Industry

The construction industry makes up for a major part of India’s GDP. Being a significant contributor to the GDP of India, the construction industry acts as a gateway for more opportunities. Construction entails real estate and urban development that consists of sanitation, urban transport, schools, health centres etc.

An enhancement in the construction industry will directly have a positive effect on other industries like cement, technology, steel, etc.

The development of a nation is recognized through its infrastructure. FDI will bring with it new possibilities to uplift the construction industry in India.

Industry Scenario

About 80-100 MT of cement per annum is expected to be added over the next 5 years.

USD 454.8 bn to be spent on infrastructure development over the period of 5 years (2015-20), with 70% of funds needed for power, roads and urban infrastructure segments.


  • 1
    Second largest employer in India
  • 2
    Second largest FDI recipient in India
  • 3
    Third largest market by 2025



1. May 2017 - Ascendas-Sembcorp to co-develop start-up area in Amaravati. The consortium of Singaporean companies will spend USD 46.6 mn while the government will invest USD 34.1 mn in a 58:42 proportion.

2. February 2017 - Infrastructure Leasing and Financial Services Ltd (IL&FS) and global private equity (PE) firm Lone Star plan to jointly invest USD 550 mn in stressed infrastructure projects in India.

3. November 2016 - Indian real estate is likely to provide investment opportunity worth USD 77 bn through Real Estate Investment Trust (REIT). - Eligible areas are commercial - office and retail, properties across the country’s top seven cities by 2020.

FDI Facts

24.7bn FDI inflows (in USD) in construction development (April 2000 - December 2017)

12.4bn FDI inflows (in USD) in construction (infrastructure) activites (April 2000 - December 2017)

363mn FDI equity inflows (in USD) in construction development (April 2017- December 2017)