India set to see growth in construction over next five years
According to the latest report from the market research company Timetric, the Indian construction industry is set to expand at a compound annual growth rate of 4.16% from now to 2021, an improvement on the 3.95% annual growth recorded over the period 2012-2016.
The housing market is without doubt the most attractive segment for investment. According to the estimates, some 30 million families are in search of affordable housing, in response to which the government has already launched a project to build 20 million homes by 2022.
Infrastructure is another key segment and in 2017 is expected to attract around US $400 million of investments, mainly for construction of the transport systems needed to urbanise the country. In the segment of new road construction, India is expected to invest $13 billion over the next few years to build more than 7,000 km of new roads linking the east and west of the country.
Two projects were launched in 2015 - Smart City Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) - involving infrastructure investments of $7.2 billion (over 100 cities) and $7.4 billion (over 500 cities) respectively by 2022.