Infrastructure Construction Market Outlook – Need for Infrastructural Development Fuelling Growth

Netscribes, Inc. launches a report on the Infrastructure Construction Market in India 2017 covering a market with strong growth potential. It is a part of Netscribes’ Manufacturing Industry Series.

Mumbai, India – September 19, 2017 – Global market intelligence firm, Netscribes, Inc. released its latest report on the ‘Infrastructure Construction Market in India 2017’ https://www.researchonindia.com/infrastructure-construction-market-in-india-2021.html. The increasing level of migration to cities from rural areas is escalating the demand for urban cities in India. The market is expected to witness dynamic growth in the near future owing to increasing amount of government investments, coupled with the rapid expansion of the overall construction sector in India.

Netscribes’ latest market research report titled Infrastructure Construction Market in India 2017 states that the infrastructure construction market is expected to grow at a higher CAGR than the overall construction market during 2015-20. The construction industry can be broadly classified into three segments, Infrastructure construction, Residential construction and Commercial and Special Economic Zones. India is witnessing significant interest from international investors in the infrastructure space. The Indian government is promoting investments in infrastructure, providing benefits such as the easing of tax restrictions and multiple financing alternatives which is acting as a major growth driver for this industry. Healthy economic outlook is also stimulating the growth of the Indian infrastructure construction industry.

However, scarcity of land for infrastructural development hinders the growth of the market. Currently major construction companies are experiencing liquidity constraints due to tightening of funding norms employed by the financial institutions in India. Moreover, rise in the cost of inputs acts as a major bottleneck in the development of the Indian infrastructure construction industry. Despite these challenges the market is poised to exhibit strong growth in the next few years. Growth of the infrastructure sector in India is dependent on overcoming such challenges. In order to increase FDI inflows, particularly with a view to catalyzing investment and enhancing the infrastructure sector, the Indian Government now permits 100% FDI under the automatic route. Huge government investments in roads & highways, airports, railways, ports and power will pave the future road map for the infrastructure construction market in India.

Indian infrastructure construction market witnesses stiff competition among the major construction companies. Gammon India, GMR Infrastructure, Hindustan Construction, IRB Infrastructure, Jaiprakash Associates, Lanco Infratech, Larsen & Toubro, MEP Infrastructure Developers, NCC Ltd. and Reliance Infrastructure are the key players operating in the market.

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