India’s construction industry to see boost in 2023
By Catrin Jones06 February 2023
The Indian construction industry is expected to receive a significant boost in 2023 which will be supported by a sharp increase in capital expenditure as part of the Financial Year 2023/2024 Budget, says data and analytics company GlobalData.
In its latest budget, the government increased its total expenditure by 7.5%, from an estimated expenditure of INR41.9 trillion (US$522.2 billion) in the financial year 2022/2023 to INR45 trillion (US$561.6 billion) in 2023/2024.
Pooja Dayanand, an analyst at GlobalData, said, “The sharp increase in capital investment is in line with the government’s focus on boosting economic growth and increasing job creation, through investment in infrastructure development.
“The increase in funding will also be necessary for assisting ministries in implementing projects that have been delayed by constraints such as rising interest rates and construction material prices, and labour shortages.”
As part of the latest budget, GlobalData says that the government increased its allocation to the state-owned National Highways Authority of India (NHAI) by 14% to INR1.6 trillion (US$20.2 billion). It also announced a record-high capital outlay of INR2.4 trillion (US$29.9 billion) for the Ministry of Railways.
It is also expected that the renewable energy sector will see an increase in investment over the coming years. This will also help in facilitating the transition of the economy to low carbon intensity, and reducing dependence on fossil fuel imports.