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. Investment in the construction industry in India, therefore, directly leads to the country’s economic development. 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 in the construction department in North India will bring with it new possibilities to uplift the construction industry


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)