India’s construction industry to grow strongly
India’s construction industry is expected to continue to grow at strong rates over the next decade, according to a recent research note from BMI Research. Growth will be underpinned by stable government support for infrastructure development, as well as expanded private sector involvement.
“We have a positive outlook for India’s construction industry and expect that growth over the next decade will draw upon increasing government and private-sector investments in infrastructure development, and resident and non-residential building,” the research firm said.
“Government support is exemplified in expansionary budgetary allocations for infrastructure projects and in regulatory reforms that are opening new sectors to private involvement and investment.”
According to BMI Research, India’s construction industry will see growth of 6.1% in 2018 – an increase on the 5% growth experienced in 2017, which was impacted by the Modi government’s programme of demonetisation. Real growth will average 6.2% between 2018 and 2027.
“Strong economic growth in India will also provide support for construction investment,” added the research company, boosting the government’s fiscal position and encouraging private investment. BMI Research recently revised its forecast for GDP growth in this financial year from 6.7% to 7.3%.