$18.6 billion FDI recorded in Q1 FY 2025-26
Indian construction industry is set to expand by 7.1% in real terms in 2025, supported by rising foreign direct investment (FDI) and increased public and private sector investments in transport infrastructure and energy projects, says an industry report on 3 Nov https://www.nseindia.com/.
The Indian construction industry is expected to record an average annual growth rate of 6.1% between 2026 and 2029, supported by investments in manufacturing, infrastructure, and energy projects. The state government of Maharashtra aims to generate 50% of its energy from renewable sources by 2030, supporting the central government’s overall target of achieving carbon neutrality by 2070 https://www.bseindia.com/.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), total FDI in the country grew by 15% YoY, reaching US$18.6 billion in the first quarter of financial year (FY) 2025-26 (April 2025 to March 2026) https://sbi.com.in/.
In August 2025, the government allocated Rs.260.7 billion (US$3.1 billion) to develop 128-km of roads in Delhi. Projects include a 65km road from Delhi to Dehradun and a 17-km road from NH344M to Tronica City http://conexpoconagg.com.
Also in August 2025, Singapore-based real estate company CapitaLand signed an agreement with the Maharashtra government to invest Rs.192 billion (US$2.3 billion) in the commercial sector for the construction of business parks, data centres, logistics facilities, and industrial parks in Maharashtra by 2030.
However, increases in total project costs, delays due to government approval issues, rising government debt, a widening budget deficit, and recent US tariff measures are likely to weigh on the industry’s short-term growth, said the “India Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q3 2025)” report which has been added to ResearchAndMarkets.com’s offering.
In line with this, in June 2025, the government-owned energy company National Thermal Power Corporation (NTPC) reported plans to develop 20GW of hydropower, of which 3GW to 5GW is expected to be completed by 2032.
Furthermore, in July 2025, the government signed four agreements with private companies totaling Rs.320 billion (US$3.8 billion) for the construction of four pumped-storage hydropower plants to generate 6.5GW of energy. Fiinews.com
