INTRODUCTION:

India’s construction sector stands as a cornerstone of the nation’s economic strategy, pivotal in addressing critical infrastructure needs and providing substantial employment opportunities. Infrastructure construction and real estate assets like offices, retail, housing, and data centres have been the major focus areas for both the government and the private sector. Logistics and warehousing have emerged as critical components within India’s construction sector, driven by rapid urbanization and the need for efficient supply chain networks. According to NAREDCO and Knight Frank’s Report, India’s warehousing market is expected to see potential demand for 159 Mn square feet by 2047, with an annual compound growth rate of 4%. The e-commerce and manufacturing industries fuel this growth by driving investments in logistics parks, industrial corridors, and modern warehousing facilities across the country. India’s real estate sector is also set to expand significantly, with projections indicating it could reach $5.8 Tn by 2047, contributing 15.5% to the total economic output.

In the fiscal year 2024-25, the government has bolstered its capital expenditure by 11.1% to $133 Bn, equivalent to 3.4% of the GDP. Such investments are poised to catalyze growth within the construction sector, fostering the development of modern infrastructure nationwide.

Furthermore, government initiatives like the Pradhan Mantri Awas Yojana-Urban (PMAY-U) have marked significant progress by sanctioning 1.18 Cr houses, with 86.6 lakh completed and 1.15 Cr grounded for construction as of September 10, 2024. This initiative aims not only to alleviate urban housing shortages but also to enhance living standards across the country.

Sustainable development remains a key focus within India’s construction sector, with government entities and private developers increasingly adopting green building practices and energy-efficient technologies. Initiatives like promoting green buildings aim to reduce environmental impact, enhance energy efficiency, and foster sustainable urban development. These practices not only contribute to environmental conservation but also align with global climate goals.

India’s construction sector is poised for substantial growth, supported by significant government initiatives, robust investments in logistics and warehousing infrastructure, and a steadfast commitment to sustainable development. The sector’s role in enhancing infrastructure, facilitating urbanization, and driving economic growth underscores its critical importance in India’s broader economic strategy. The trajectory of India’s construction sector reflects its integral role in shaping the country’s economic landscape. With ongoing initiatives like PMAY-U, HRIDAY, etc. substantial investment commitments, a focus on sustainability through green building practices, and advancements in logistics and warehousing infrastructure, the sector is not only meeting current infrastructure demands but also setting the stage for long-term economic resilience and sustainable urban development across the nation.

REASONS TO INVEST IN INDIA:

• The Real Estate Industry in India is expected to reach USD1 Tn by 2030 and will contribute 13% to India’s GDP by 2025.
• By 2030, more than 40% of the population is expected to live in urban India (33% today), creating a demand for 25 Mn additional mid-end and affordable units.
• Construction Sector contributes 9% in India’s GDP.
• The share of the urban population is expected to be 50% of the total population by 2050.
• Eightfold increase the total expenditure on urban development as over the past six years (2015-2021) valued at INR 11.83 lakh cr against the INR 1.57 lakh cr from 2004 to 2014.
• PM launches Gati Shakti Master Plan to integrate different modes of transportation and increase the speed of infrastructure development in India.
• India is committed to build modern infrastructure for the 21st century. GOI aims to reduce logistics cost by 5%.

GROWTH DRIVERS:

• MoHUA sanctions 122.69 lakh houses under PMAY-U ‘Housing for All’ Mission for providing all-weather pucca houses to urban beneficiaries.
• A project has been sanctioned by Union Minister of Power amounting to INR 22.5 Crores for the reconstruction/restoration work in 478 schools in 8 districts (i. Bageshwar, ii. Nanital, iii. Udham Singh Nagar, iv. Pauri, v. Chamoli, vi. Almora, vii. Champawat, & viii. Pithoragarh) and 28 health Centres in 5 districts (i. Almora, ii. Champawat, iii. Udham Singh Nagar, iv. Nanital, & v. Pithoragarh) of Uttarakhand.
• PM launched the 2nd phases of Swachh Bharat Mission-Urban (SBM-U) and AMRUT with an outlay of about INR 4.4 Lakh Crore, to adopt ‘Universal Approach’ and make a move towards ‘Saturation’ in sanitation and water availability in all Urban Local Bodies (ULBs), making the cities ‘Aatmanirbhar’.
• Commission for Air Quality Management (CAQM) is actively taking up strict compliance of dust mitigation measures at Construction and Demolition (C&D) sites in the NCR.
• The booklet on ‘Transformative Reforms Towards Housing for All’explains the transformative journey of PMAY(U) and lays the way forward which is required to complete the vision of Hon’ble Prime Minister to ensure ‘Housing for All’.
• Project proposals for more than 60,000 houses approved for construction in 5 States.
• 80 lakh houses will be completed for the identified eligible beneficiaries of PM Awas Yojana, both rural and urban, and INR 48,000 crore is allocated for this purpose.
• Out of 80 lakh houses to be completed in 2022-23, 28 lakh houses will be in the urban areas and 52 lakh houses in the rural areas of the country.
• Vayu Pravah: an open-source computational fluid dynamics (CFD) tool is launched to help building designers improve natural ventilation in buildings and make them cooler and healthier.
• A manual on External Movable Shading Systems (EMSyS), a compilation of external shading solutions is launched to help reduce heat ingress into buildings and keep buildings cooler.
• The Smart Cities Mission and World Economic Forum have joined hands to setup a ‘virtual hub for collaboration on urban transformations’. The hub will leverage emerging technologies and innovations to transform Indian cities into centres of sustainable, inclusive and resilient growth.
• Smart Cities Mission launched the Urban Outcomes Framework 2022, Artificial Intelligence Playbook for Cities & AMPLIFI – Assessment and Monitoring Platform for Liveable, Inclusive and Future-ready urban India to promote the use of data that addresses complex urban issues.
• The Geo-Portal for NCR made Public to improve decentralized planning and management in NCR region. The Portal consists of around 179 Layers presented as Line, Point & Polygon feature covering details of various sectors like Land Use, Transport, Industries, Water, Power, Health, Shelter, Heritage & Tourism, Disaster Management, etc.