In a nutshell
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.
Share in India’s GDP
Number of people employed
Projects under the National Infrastructure Pipeline (NIP)
Share in total FDI inflows (FY21)
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Infrastructure
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Identifying trends and growth opportunities in the Indian smart parking management sector to highlight major contributors to the demand for the same.
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DHL Supply Chain to invest € 500 million (USD 503.04 million) in India over next 5 years
DHL Supply Chain, a provider of contract logistics services, is expected to invest € 500 million (USD 503.04 million) in India over the next five years to increase its workforce, warehousing capacity, and sustainability initiatives.
The expansion will add 12 million square feet of warehouse space to its current portfolio, bringing its total capacity to nearly 22 million square feet by 2026.
Additionally, multi-client sites are being developed in tier-2 cities like Baddi, Cochin, Coimbatore, Guwahati, Sanand, Indore, Lucknow, Bhubaneshwar, Hosur, and Visakhapatnam, among other rapidly expanding state capitals.
The company has also announced plans to convert its whole intra-city fleet to green transportation by 2025, and to quadruple its employment in India to 25,000 workers by 2026.
According to DHL Supply Chain, the SmarTransport division will leverage its warehouse investments to leverage economies of scale with end-to-end service offerings in order to further accelerate transport growth.