India’s construction output to exceed $1tn by 2027

The international airport in Mumbai, India. Aviation has seen large investment in India. Image: Adobe Stock

According to GlobalData, the capital expenditure allocation in FY2026-27 is equivalent to 3.1% of Gross Domestic Product (GDP) and marks an increase of 11.5% compared to the expenditure of INR10.9 trillion ($121.6 billion) in the revised estimates for the FY2025-26 Budget.

The continued focus on infrastructure and domestic manufacturing in the 2026-27 budget will provide a significant boost to the Indian construction industry.

“While all six construction sectors (commercial, industrial, institutional, residential, infrastructure and energy & utilities) are showing sustained growth momentum, growth in infrastructure, energy and utilities and industrial sector will help drive construction output,” said Dhananjay Sharma, construction analyst at GlobalData.

“The government’s sustained focus on renewable energy, roads and railways and ‘Make in India’ initiatives will boost the construction industry and have multiplier effect on the economy, helping it to achieve the mark of US$5 trillion economy.”

Data from Off Highway Research predicts that the Indian market is expected to resume its growth trajectory and enjoy a 6% rise in equipment sales this year.

That would take the market close to the record high seen in 2024, and this high-water mark should certainly be surpassed in 2027.