India's construction market

India's construction market is on a steady growth path, valued at USD 0.79 trillion in 2026 and projected to reach USD 1.10 trillion by 2031 at a 6.87% CAGR, supported by urbanization, rising capex, FDI liberalization and government programs such as PM GatiShakti and PMAY-U 2.0. Demand is broad-based, yet value creation is concentrated, with the top 10 states contributing nearly 78% of construction GSVA. In residential, premium homes above INR 8 million made up about 75% of Q2 2026 launches across eight major markets, while sales moderated and inventory rose amid geopolitical and sector-specific uncertainty. Beyond housing, manufacturing, energy, logistics and digital infrastructure are widening the project pipeline. Combined with strong public and private investment and a healthy order book, this supports a forecast of 6-8% sector growth in FY2027.