As India embarks on an ambitious infrastructure expansion, domestic construction firms leveraging advanced technology are catching the eye of international investors. With the sector now ranking as the world’s third largest, companies that adopt tools such as building information modeling (BIM), digital twins and prefabrication are positioned to lead the market.
“India is a market that cannot be ignored globally because, in construction terms, it ranks third worldwide,” said Nirmalya Chatterjee, India head of Germany’s Nemetschek, underscoring the country’s scale and growth potential. He noted that construction remains the second-largest contributor to GDP after agriculture and that technology diffusion is essential to improve productivity and transparency.
The federal government has allocated ₹11.21 lakh crore for capital expenditure in fiscal 2025–26—around 3.1 percent of GDP—and total infrastructure spending topped ₹10 lakh crore in 2023–24. Despite these record investments, the industry faces challenges, including rising technology costs and workforce skill gaps. Yet, credit agency ICRA forecasts an 8–10 percent year-on-year growth in operating income for construction companies through fiscal 2026, driven by healthy order books and stable margins.
Industry experts believe that as digital adoption accelerates, firms that integrate data-driven project planning and modular construction methods will not only enhance efficiency but also attract further global partnerships and capital, cementing India’s position as a premier destination for infrastructure development.
