India Emerges as Key Driver of Global Construction Growth

11 Jun 2026 CW Team

The Berlin-based venture capital firm, which focuses on architecture, engineering and construction technology, said India accounts for 14.1% of global construction growth by volume during the period. China leads with 26.1%, while the United States follows India at 11.1%.

According to the report, India and China together account for nearly 40% of global construction growth. Global capital expenditure is also becoming increasingly concentrated across five major economies: India, China, the United States, Germany and France.

Global construction spending reached US$15.97 trillion in 2024 and is projected to rise to US$19.86 trillion by 2028, reflecting a CAGR of 5.6%. Infrastructure remains the fastest-growing major construction segment globally, expanding at a CAGR of 5.1% between 2020 and 2025.

India’s infrastructure market is expected to grow at around 8% annually through the end of the decade, driven by highways, railways, airports, ports, industrial corridors, urban transit, logistics networks and energy infrastructure.

Foundamental said India’s growing role reflects its infrastructure agenda, rapid urbanisation, manufacturing-led growth and rising investment in transport, logistics and energy networks. The report also noted that India’s expansion is increasingly being driven by discrete, time-bound projects across infrastructure, energy, real estate and manufacturing.

The report identifies five key forces reshaping the global project economy: re-industrialisation, data centre construction, energy infrastructure, civil infrastructure and defence infrastructure.

Data centre construction is expected to double by 2030 compared with 2018 levels, supported by artificial intelligence and cloud computing demand. Foundamental estimates that data centre infrastructure could add 10-15% to the global construction market by 2030.

For India, the report expects AI adoption, digital public infrastructure, cloud expansion, financial-services digitisation and data-localisation requirements to accelerate data centre investment. This is likely to create further demand across construction, engineering and project management.

Energy infrastructure is also expected to witness significant growth as data centres, electrification and renewable energy expansion increase demand for power generation, transmission, grid modernisation, battery storage and green-hydrogen infrastructure.

The report concludes that India is positioned to benefit from multiple long-term trends, including infrastructure expansion, industrial development, digital transformation, urbanisation and the energy transition, making it one of the most influential contributors to global construction growth through 2030 and beyond.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

India has emerged as the world’s second-largest single-country contributor to global construction growth between 2020 and 2030, according to Foundamental’s latest State of the Project Economy 2026 report.The Berlin-based venture capital firm, which focuses on architecture, engineering and construction technology, said India accounts for 14.1% of global construction growth by volume during the period. China leads with 26.1%, while the United States follows India at 11.1%.According to the report, India and China together account for nearly 40% of global construction growth. Global capital expenditure is also becoming increasingly concentrated across five major economies: India, China, the United States, Germany and France.Global construction spending reached US$15.97 trillion in 2024 and is projected to rise to US$19.86 trillion by 2028, reflecting a CAGR of 5.6%. Infrastructure remains the fastest-growing major construction segment globally, expanding at a CAGR of 5.1% between 2020 and 2025.India’s infrastructure market is expected to grow at around 8% annually through the end of the decade, driven by highways, railways, airports, ports, industrial corridors, urban transit, logistics networks and energy infrastructure.Foundamental said India’s growing role reflects its infrastructure agenda, rapid urbanisation, manufacturing-led growth and rising investment in transport, logistics and energy networks. The report also noted that India’s expansion is increasingly being driven by discrete, time-bound projects across infrastructure, energy, real estate and manufacturing.The report identifies five key forces reshaping the global project economy: re-industrialisation, data centre construction, energy infrastructure, civil infrastructure and defence infrastructure.Data centre construction is expected to double by 2030 compared with 2018 levels, supported by artificial intelligence and cloud computing demand. Foundamental estimates that data centre infrastructure could add 10-15% to the global construction market by 2030.For India, the report expects AI adoption, digital public infrastructure, cloud expansion, financial-services digitisation and data-localisation requirements to accelerate data centre investment. This is likely to create further demand across construction, engineering and project management.Energy infrastructure is also expected to witness significant growth as data centres, electrification and renewable energy expansion increase demand for power generation, transmission, grid modernisation, battery storage and green-hydrogen infrastructure.The report concludes that India is positioned to benefit from multiple long-term trends, including infrastructure expansion, industrial development, digital transformation, urbanisation and the energy transition, making it one of the most influential contributors to global construction growth through 2030 and beyond.

Infrastructure Transport

10 Jul 2026

Uttar Pradesh unveils infrastructure-led growth roadmap at RAHSTA

Mumbai, 9 July 2026: Uttar Pradesh’s ambitious infrastructure-led growth strategy took centre stage on Day 2 of the 16th RAHSTA Expo, where senior government officials outlined how expressways, industrial corridors and technology-driven governance are transforming the state into one of India's most attractive investment destinations.Delivering the keynote address, Srihari Pratap Shahi, IAS, Additional Chief Executive Officer, Uttar Pradesh Expressways Industrial Development Authority (UPEIDA), highlighted the state's long-term vision of integrating world-class expressways with industrial dev..

Real Estate

10 Jul 2026

NCW closes PRIME Offices Fund at Rs 40 billion

Nuvama and Cushman & Wakefield Management (NCW) has announced the final close of its flagship PRIME Offices Fund at approximately Rs 40 billion, exceeding its original target of Rs 30 billion following strong investor demand.The fund was launched to provide Indian investors with access to institutional-grade commercial office assets across key office markets in the country. According to NCW, the increase in the fund size was supported by strong investor participation and the availability of investment opportunities in India's office sector.The fund has already committed around 45 per cent ..

Real Estate

10 Jul 2026

Mayfair Housing adopts Autodesk Forma for digital project planning

Mayfair Housing has entered into a three-year strategic partnership with Autodesk to deploy Autodesk Forma, an AI-enabled cloud platform, as part of its digital transformation programme aimed at improving project planning and execution across its development and redevelopment portfolio.The platform will be integrated into the company's Building Information Modelling (BIM) workflow to support architects, planners and project teams during the early stages of design and development. Autodesk Forma combines real-world data, environmental simulations and collaborative workflows to facilitate data-d..