CONSTRUCTION

Investment in Construction Industry

The construction industry makes up for a significant part of India's GDP. Being an essential contributor to the GDP of India, the sector acts as a gateway for more opportunities. Investment in the construction industry in India, therefore, directly leads to the country's economic development. The Construction industry in India consists of the real estate as well as the urban development segment. The Real estate segment covers residential, office, retail, hotels, and leisure parks. In contrast, the urban development segment broadly consists of sub-segments such as Water supply, Sanitation, Urban transport, Schools, and Healthcare. Indian real estate attracted $5 billion in institutional investments in 2020.

By 2025, the country's construction market will emerge as 3rd most significant globally, and the construction output is expected to grow on an average of 7.1% each year. An enhancement in the construction industry will directly affect other sectors like cement, technology, steel, etc. The development of a nation gets recognized through its infrastructure. FDI in the construction department in North India will bring new possibilities to uplift the construction industry.

Construction equipment industry revenue stood at $ 6.5 Bn in 2020.

100% FDI in the construction development sector under automatic route is permitted in completed projects for operations and management of townships, malls/shopping complexes, and business constructions.

100% FDI in real estate in India is allowed under the automatic route for urban infrastructures such as urban transport, water supply, sewerage, and sewage treatment.