Sector Snapshot · Construction

India's Infrastructure Build-Out Keeps Accelerating

A fast-read primer on India's construction and infrastructure sector — the backdrop against which we benchmark every company's cost structure in this category.

Rs 12.22 lakh cr

Infra capex outlay, Union Budget 2026-27

Rs 10 lakh cr

Second Asset Monetization Plan target, 2025-30

10.70%

Logistics sector CAGR through 2026

6.5%

Infra investment as % of GDP, FY29F

166.7

Index of Eight Core Industries, Feb 2026

Capex and Core Output Are Both Climbing

Government spending commitments are rising, and the core industries that feed construction are already showing it.

Infrastructure Investment (% of GDP)

FY24 → FY29 forecast

5.3%

FY24

6.5%

FY29F

Index of Eight Core Industries

Feb 2025 → Feb 2026

163.0

Feb 2025

166.7

Feb 2026

What's Pushing the Sector Forward

Record budgetary allocation, private capital, and rising investment are all converging.

Budgetary Push

Infra capex raised to Rs12.22 lakh crore in FY27, up 11.5% YoY
50-year interest-free loan scheme for states expanded to Rs1.85 lakh crore

Private Participation

Second Asset Monetization Plan targets Rs10 lakh crore reinvestment, 2025-30
Infrastructure Finance Secretariat established to widen private investment

Rising Investment

CRISIL projects ~Rs143 lakh crore in infra spend through FY30
FDI in construction development has crossed Rs1,38,088cr since April 2000

Recent Developments

A sample of the industry-wide and policy moves shaping the sector through early 2026.

→ Union Budget 2026-27 raised the infrastructure capital investment outlay to Rs 12.22 lakh crore, up 11.5% YoY.
→ The Index of Eight Core Industries rose to 166.7 in February 2026, from 163 a year earlier.
→ Steel and cement production both posted strong growth (9.7% and 9.2% YoY respectively).
→ India's logistics sector is projected to grow at a 10.70% CAGR through 2026.
→ Morgan Stanley projects infrastructure investment rising from 5.3% of GDP (FY24) to 6.5% (FY29).
→ The government approved 56 Watershed Development Projects across 10 states with a Rs700 crore budget.

Companies We Benchmark in This Sector

Listed Indian Construction companies in tDoBe's cost-benchmarking coverage.

Larsen & Toubro

Rail Vikas Nigam

NBCC (India)

IRB Infrastructure Developers

Concordia Project

Kalpataru Projects International

Central Mine Planning

Engineers India

KEC International

Ircon International

Techno Electric & Engineering

Afcons Infrastructure

RITES

NCC

Power Mech Projects

G R Infraprojects

Welspun Enterprises

Dilip Buildcon

See How These Companies Compare on Cost

The numbers above set the stage. Our Report translates it into a company-by-company cost benchmark — down to the category — so you can see exactly where a business sits against its peers.

Explore the Construction Report