Fuelling progress in the construction sector

The financial year 2024–2025 (FY2025) is a crucial year for the Indian construction industry as it fully embraces the potential of digital transformation that will lead to tangible impacts on project timelines and financial outcomes. With the adoption of diverse streams of technology, we anticipate significant transformation across the sector.

This year will not only witness groundbreaking advancements in construction but also extraordinary global political activity. As reported by Bloomberg and The Economist, 2024 will be the largest election year in history, with countries spreading from Taiwan to Tuvalu participating in the democratic process. However, instead of bringing about stability after a series of somewhat chaotic years in the wake of the pandemic, the polling rallies are likely to fan the flames of uncertainty.

In India, amidst the vote-winning announcements, the anticipation for strategic spending commitments and policies to bolster national economic stability is palpable. With global supply chains disrupted due to geopolitical tensions and investors adopting a wait-and-watch approach until the conclusion of elections, we anticipate a slowdown in the initial quarter of the fiscal year, with hopes for short-to-long-term stabilisation after election results are declared.

On the sustainability front, the construction industry is actively transitioning toward a greener and more eco-friendly future, with Declaration de Chaillot — an international cooperation by 70 worldwide countries to adopt and enable the green progression of the construction sector through the Intergovernmental Council for Buildings and Climate. The focus is shifting towards minimising embodied carbon, with the aim of achieving net zero status. The rapid development of innovative technologies, materials and construction methodologies, in addition to reducing operational carbon, promises to enhance overall industry efficiency and stay compliant with COP agreements.

From previous performance, India's economic outlook looks gradual but promising. Forecasts indicate growth in gross domestic product (GDP) with reductions in the gross value added (GVA) gap, a falling inflation rate, higher goods and services tax (GST) collections and interest rates sustained as a precautionary measure. However, the outlook is subject to the geopolitical dynamics restoring its status quo. The ongoing war in the Middle East, having escalated to directly involve other countries, along with the likely re-intensification of the Russia-Ukraine conflict, can cause severe supply chain disruptions and negatively influence the global economy, with China's economic performance also serving as a significant factor.

Considering these national and international developments, we are pleased to present our biannual publication, offering a comprehensive review of current market trends and detailed cost dynamics analysis supported by a market survey providing insights into the realities of the construction industry.

We believe this publication will instil confidence and enthusiasm regarding India's growth trajectory and serve as a valuable resource for stakeholders seeking up-to-date information and insights on market trends within the built environment.