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Tender: Construction industry to grow 7.1% in 2025

Fiinews by Fiinews
July 25, 2025
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Eight nuclear reactors under construction, says report

India’s construction industry is expected to grow by 7.1% in real terms in 2025, driven by public and private sector investments in energy, industrial, and railway projects, coupled with government’s plan to expand its nuclear capacity from 8.9GW in 2024 to 100GW by 2047.

Eight nuclear reactors, with a combined capacity of 6.6GW are under construction as of April 2025, said the “India Construction Market Size, Trends, and Forecasts by Sector – Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029, ” report which has been added to ResearchAndMarkets.com‘s offering from 24 July.

The industry’s growth in 2025 will also be supported by investments as part of the latest financial year (FY) 2025-26 Budget (1 April 2025 to 31 March 2026), that was announced in February 2025.

The FY2025-26 Budget outlines a total expenditure of Rs.50.7 trillion (US$603 billion), with major allocations to transport sector, with Rs.2.9 trillion (US$34.5 billion) allocated for the Ministry of Road Transport and Highways, and Rs.2.6 trillion (US$30.9 billion) for the Ministry of Railways.

Growth over the forecasted period will also be driven by the Ministry of Rural Development‘s, Pradhan Mantri Awaas Yojana- Gramin (PMAY-G), under which the government is planning to construct 49.5 million homes in the country by March 2029.

In mid-March 2025, Larsen & Toubro (L&T), Indian based construction company, secured its largest-ever residential contract, with a projected value between Rs.25 billion (US$297.3 million) and Rs.50 billion (US$594.6 million), from an Indian real estate company, the Brigade Group.

The project involves the construction of high-end residential and commercial towers in Hyderabad and Chennai. In Hyderabad, the “Brigade Gateway Residences” at Kokapet is expected to feature two luxury towers, while the “Brigade World Trade Centre” at Neopolis is expected to include a commercial tower over 200m tall, along with retail spaces and a five-star hotel. Fiinews.com

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Fiinews.com features through news articles on business opportunities in the Indian market for the benefits of foreigners. It is also a platform for international businesses to showcase through elaborate articles on their products & services to the Indian consumers and corporations exploiting industrialisation of the country.

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