The infrastructure sector is the backbone of the Indian economy and receives significant investments from the government. In the Union Budget 2022-23, a massive sum of USD 130.57 billion was allocated to the infrastructure sector. The sector includes power, bridges, dams, roads, and urban infrastructure development within its ambit and is estimated to grow at a CAGR of ~7% between 2022 and 2027.

The Government of India plans to invest about USD 1.3 trillion in infrastructure development projects by 2024-25. There are eight core infrastructure industries in India—coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity.

As urbanization peaks and the number of metropolitan cities in India is estimated to increase from 46 to 68 in 2030, India plans to spend USD 1.4 trillion on infrastructure between 2019 and 2023 to have a sustainable development of the country.

Schemes like the Smart City Mission aim to improve the quality of life through modernized/technology-driven urban planning, and the government’s flagship mission Pradhan Mantri Awas Yojana (Urban) aims to provide housing for all in urban areas by the year 2022.

While it suffered during the pandemic, as value chains were affected, it is set to make a rebound as the real estate segments gear up for growth. In 2020, the Indian construction equipment market had a turnover of ~USD 6.5 billion. The competition in the Indian construction market is high, given the presence of major local and international players. In 2020-21, infrastructure activities accounted for a 13% share of the total FDI inflows of USD 81.72 billion, when the sector was the second-highest FDI recipient.