Growth of Construction Equipment Industry in India - Infographic

Government is working towards the development of a national highway network of 2 lakh kms by 2025.

Advantage India

Robust
Demand

*India intends to enhance its infrastructure to reach its 2025 economic growth target of US$ 5 trillion.

*Cement demand in India is projected to remain robust in the coming years, with a compound annual growth rate (CAGR) of 7-8% over FY25-27, according to a report by JM Financial.

*Indian REITs deliver 6-7.5% yields, have reached Rs. 1,54,242 crore (US$ 18 billion) market as of August 2025 and are projected to surpass Rs. 2,14,225 crore (US$ 25 billion) by 2029 with expansion into retail, logistics and new-age assets.

Attractive
Opportunities

*Infrastructure development boosts transport efficiency, demand, and commercial opportunities.

*In March 2024, Prime Minister Mr. Narendra Modi inaugurated connectivity projects worth US$ 1.8 billion in Kolkata.

*In the Union Budget 2025-26, Union Minister for Finance & Corporate Affairs, Ms. Nirmala Sitharaman announced plans to connect 120 new airports in 10 years, targeting four crore additional passengers.

*Morgan Stanley projects India’s infrastructure investment to rise from 5.3% of GDP in FY24 to 6.5% by FY29.

*In January 2025, the government approved 56 Watershed Development Projects in 10 high-performing states with a budget of Rs. 700 crore (US$ 80.9 million).

Policy
support

*Union Budget 2025-26 includes continuation of a 50-year interest-free loan for states' capital expenditure, with an enhanced outlay of Rs. 1.5 lakh crore (US$ 17.30 billion).

*In line with PM Gati-Shakti National Master Plan, eight key infrastructure projects have been shortlisted: seven by the Ministry of Railways and one by the Ministry of Road Transport and Highways to improve efficiency in challenging terrains.

*Private sector access to relevant data and maps from the PM Gati Shakti portal will be provided for better project planning.

*Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) aims to modernize infrastructure and supply chains in the food processing sector.

*PMKSY focuses on reducing agricultural wastage, increasing processing levels, improving farmers' income, and generating rural employment.

Increasing
Investments

*In the Union Budget 2025-26, capital investment outlay for infrastructure has been increased to Rs.11.21 lakh crore (US$ 128.64 billion), which would be 3.1% of GDP.

*FDI in construction development (townships, housing, built-up infrastructure and construction development projects) and construction (infrastructure) activity sectors stood at Rs. 2,33,188 crore (US$ 27.21 billion) and Rs. 3,15,768 crore (US$ 36.85 billion), respectively, between April 2000 to June 2025.

*In February 2025, Adani Group has announced an investment of Rs. 30,237 crore (US$ 3.46 billion) in Kerala over the next five years, focusing on infrastructure, logistics, and manufacturing. This significant investment presents attractive opportunities for growth and development in the region.

Snapshot Showcase Infographics Reports

Last updated: Oct, 2025

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