India Infrastructure Sector Market Size (2024 - 2029)

The market size of the infrastructure sector in India is poised for significant growth, driven by the country's ambition to achieve developed nation status by 2047. This growth is underpinned by substantial government investment, particularly in transport and logistics, which are critical for economic expansion. The transport sector, encompassing roads, highways, railways, and urban public transport, is a major focus, with ambitious infrastructure projects and public-private partnerships playing a crucial role in funding and development. The increasing budgetary allocations and favorable policy environment further enhance the market's potential, offering lucrative opportunities for private sector investment.

Market Size of India Infrastructure Sector Industry

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India Infrastructure Sector Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 204.06 Billion
Market Size (2029) USD 322.27 Billion
CAGR (2024 - 2029) 9.57 %
Market Concentration Low

Major Players

India Infrastructure Sector Major Players

*Disclaimer: Major Players sorted in no particular order

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India Infrastructure Sector Market Analysis

The India Infrastructure Sector Market size is estimated at USD 204.06 billion in 2024, and is expected to reach USD 322.27 billion by 2029, growing at a CAGR of 9.57% during the forecast period (2024-2029).

India's aspirations to attain developed nation status by 2047 heavily rely on bolstering its infrastructure, a pivotal driver for creating livable, climate-resilient, and inclusive cities that fuel economic growth. This commitment is evident in the government's allocation of 3.3% of GDP to the infrastructure sector in FY2024, with a notable emphasis on transport and logistics.

Within the transport sector, roads and highways claim the lion's share, trailed by railways and urban public transport. The government has set ambitious goals, aiming to construct a 2 lakh-km national highway network by 2025, expand airports to 220, operationalize 23 waterways by 2030, and establish 35 Multi-Modal Logistics Parks (MMLPs).

In FY2023, the budgetary allocation for infrastructure-related ministries stood at approximately INR 3.7 lakh crore. This figure saw a notable increase, reaching INR 5 lakh crore in FY24. This surge in funding presents lucrative investment opportunities for the private sector, particularly in the diverse transport sub-segments.

As the transport sector grapples with sustainability concerns, the private sector is well-positioned to leverage the favorable policy landscape and ramp up its infrastructure investments.

Public-private partnerships (PPPs) have emerged as a pivotal avenue for private sector involvement, notably in projects spanning airports, ports, highways, and logistics parks across India. While the central government and states have extended support through various schemes, India's ambition of becoming a USD 5 trillion economy by 2025 necessitates a substantial impetus from PPPs.

India Infrastructure Sector Industry Segmentation

Infrastructure is the backbone of domestic and international commerce and industrial and agricultural production. It is the fundamental organizational and physical framework necessary to operate a firm successfully. The infrastructure sector focuses on major infrastructure sectors such as power, roads and bridges, dams, and urban infrastructure.

The Indian infrastructure market is segmented by the infrastructure segment (social infrastructure, transportation infrastructure, extraction infrastructure, manufacturing infrastructure, and utility infrastructure) and by key states (Maharashtra, Karnataka, Delhi, Telangana, and Other States). The report offers market size and forecast values (USD) for all the above segments.

By Infrastructure segment
Social Infrastructure
Transportation Infrastructure
Extraction Infrastructure
Manufacturing Infrastructure
Utilities Infrastructure
By Key States
Maharashtra
Karnataka
Delhi
Telangana
Other States
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India Infrastructure Sector Market Size Summary

The infrastructure industry in India is poised for significant growth, driven by the government's strategic focus on enhancing transport and logistics networks. With a substantial allocation of GDP towards infrastructure development, the sector is set to play a crucial role in India's ambition to become a developed nation by 2047. The government's initiatives, such as the Bharatmala Pariyojana, aim to expand the road network significantly, including the construction of expressways and economic corridors. Public-private partnerships (PPPs) are becoming increasingly important, offering lucrative opportunities for private sector investment in projects like airports, ports, and logistics parks. The transport sector, particularly roads and highways, is a key area of focus, with innovative PPP models and incentives designed to attract both domestic and foreign investments.

The Indian infrastructure market is characterized by a mix of major local and international players, with companies like Larsen & Toubro Limited and Tata Projects Ltd leading the charge. The market remains partially fragmented, with new entrants actively seeking to secure projects and strengthen their market positions. Recent developments include Tata Steel's partnership with South Eastern Railway to promote sustainable rail infrastructure and the Highway Infrastructure Trust's acquisition of multiple road projects. These initiatives underscore the dynamic nature of the sector, as it adapts to evolving economic and environmental challenges while striving to meet the demands of a rapidly growing economy.

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India Infrastructure Sector Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 By Infrastructure segment

      1. 1.1.1 Social Infrastructure

      2. 1.1.2 Transportation Infrastructure

      3. 1.1.3 Extraction Infrastructure

      4. 1.1.4 Manufacturing Infrastructure

      5. 1.1.5 Utilities Infrastructure

    2. 1.2 By Key States

      1. 1.2.1 Maharashtra

      2. 1.2.2 Karnataka

      3. 1.2.3 Delhi

      4. 1.2.4 Telangana

      5. 1.2.5 Other States

India Infrastructure Sector Market Size FAQs

The India Infrastructure Sector Market size is expected to reach USD 204.06 billion in 2024 and grow at a CAGR of 9.57% to reach USD 322.27 billion by 2029.

In 2024, the India Infrastructure Sector Market size is expected to reach USD 204.06 billion.

Infrastructure Industry in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)