The construction industry in India is anticipated to experience steady growth over the next four quarters of 2023. This outlook is based on the industry’s ability to recover quickly from any short-term challenges it may face in certain sectors.While there may be some near-term difficulties in some regions of construction, the medium to long-term growth prospects for the industry in India remains strong. In fact, it returned to its pre-crisis levels by 2022.There are several factors that are contributing to this positive outlook for the construction industry in India. These include the country’s strong economic growth, increasing urbanization, and growing demand for infrastructure and housing.

1. The Indian government has approved the extension of the Pradhan Mantri Awas Yojana-Urban, a scheme launched in 2015 with the goal of constructing 1.12 crore homes in urban areas by 2022. The extension of the scheme, which aims to provide affordable housing, will now run until December 31, 2024, and has received INR 48,000 crores in the Union Budget for the construction of 80,00,000 homes. “The extension of this affordable housing initiative is expected to drive growth in the residential construction market in India in the coming years”.
2. Employment in the construction sector saw its best performance in September and October 2021, reaching a total of 84 million. However, this number dropped to 77 million in November and December 2021. It has since recovered, reaching approximately 83 million in January and February 2022.
3. The Indian construction sector experienced success in FY22, as evidenced by the 40% growth of the BSE Realty benchmark indicator. During this fiscal year, the total net sales of construction companies increased by 13.60% compared to FY21. While the total operating profit decreased by 6.24% year-over-year, the total net profit significantly increased by 29.02% year-over-year.
4. A recent survey conducted in January 2022 found that 89% of those looking to purchase real estate were interested in luxury homes, such as city apartments, bungalows, and vacation homes. The remaining 11% were interested in premium commercial properties. Approximately 21% preferred to buy in the INR 5-10 crore range, while the remaining 10% were interested in properties priced at INR 25 crore or more. Large-scale residences, particularly in residential township developments, have become a popular choice and are expected to continue driving the construction industry.