Construction in India - Key Trends and Opportunities to 2023
|出版日||ページ情報||英文 53 Pages
|インドの建設市場：主な傾向と今後の機会 Construction in India - Key Trends and Opportunities to 2023|
|出版日: 2019年03月06日||ページ情報: 英文 53 Pages||
India's construction industry regained growth momentum in 2018, with output expanding by 8.8% in real terms - up from 1.9% in 2017. This was driven by positive developments in economic conditions, improvement in investor confidence and investments in transport infrastructure, energy and housing projects. In the 2018-2019 budget, the government increased its expenditure towards infrastructure development by 20.9%, going from INR4.9 trillion (US$75.9 billion) in the Financial Year (FY) 2017-2018 to INR6.0 trillion (US$89.2 billion) in FY2018-2019.
Consequently, the country's construction industry's output value, measured at constant 2017 US dollar exchange rates, rose from US$464.9 billion in 2017 to US$505.7 billion in 2018. The total construction project pipeline in including all mega projects with a value above US$25 million - stands at INR82.5 trillion (US$1.2 trillion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 60.7% of the pipeline value being in projects in the pre-planning and planning stages as of March 2019.
In January 2019, the government outlined the investments under the second phase of Bharatmala scheme, which will drive the road infrastructure developments in the country. Accordingly, the government aims to invest INR3.4 trillion (US$50.3 billion) through the budgetary allocation between FY2019-2020 and FY2022-2023, while INR2.1 trillion (US$30.7 billion) will be made through market borrowings in the Bharatmala scheme by 2023. Moreover, population growth and urbanization will also drive the need for better infrastructure facilities in the country.
The industry's output value in real terms is expected to rise at a CAGR of 6.44% over the forecast period, compared to 4.31% during the review period (2014-2018). The industry is consequently expected to rise from a value of US$505.7 billion in 2018 to US$690.9 billion in 2023, measured at constant 2017 US dollar exchange rates.
Accounting for 30.6% of the industry's total value in 2018, residential construction was the largest market in the Indian construction industry during the review period. The market is expected to remain the largest market over the forecast period, accounting for 30.1% of the industry's total value in 2023. Energy and utilities construction accounted for 27.1% of the industry's total output in 2018, followed by infrastructure construction with 23.3%, industrial construction with 7.8%, commercial construction with 7.6% and institutional construction with 3.6%. Over the forecast period, the market will be supported by the government's vision to provide houses under the Housing for All by 2022. Under the Pradhan Mantri Awas Yojana (PMAY), the government built 15.3 billion houses during the period of 2014-2018.