Industry experts are bullish on India’s construction sector, forecasting the market to expand from USD 1.04 trillion in 2024 to USD 1.21 trillion by 2025, driven by robust public- and private-sector investments. Divyesh Doshi, Director of Kinjal Group, predicts the industry will reach USD 1.4 trillion by year-end, crediting rapid adoption of off-site prefabrication and modular construction techniques. “These methods shrink timelines significantly and reduce on-site bottlenecks,” Doshi remarked.
On the financial front, the Reserve Bank of India’s June 19 decision to lower provisioning requirements for under-construction infrastructure loans from 5% to 1% is expected to unlock fresh capital for stalled projects. Analysts note that this relief will bolster lender confidence and ease funding for long-gestation developments.
Meanwhile, specialists highlight the transformative potential of digital labour-management tools. “Enhanced coordination, real-time tracking, and automated documentation can improve efficiency and safety across sites,” according to industry surveys. However, labour shortages and material-cost inflation remain pressing challenges; observers warn growth may moderate to between 8% and 12% if these issues persist.
To sustain momentum, experts urge a balanced focus on regulatory support, workforce training, and investment in technology. “Regulatory clarity, combined with digital upskilling, will be key to unlocking the sector’s full potential,” Doshi concluded.
