Infrastructure boom positions India right behind China in global construction growth.
India has surpassed the United States to secure the second spot in global construction growth, driven by rapid urbanisation and infrastructure investments.
As a result, this shift significantly reshapes the global project economy. Moreover, it introduces new dynamics that affect how projects are planned, executed, and evaluated. Consequently, stakeholders must adapt to these changes to remain competitive in an evolving landscape.
India has overtaken the United States as the second-largest construction growth market globally. Consequently, this shift reshapes the global project economy. Rapid urbanisation & industrial expansion drive this remarkable transformation. China remains the only country ahead of India. The Berlin-based venture capital firm Fundamental recently published its State of the Project Economy 2026 report.
Furthermore, the report highlights India’s growing dominance. Between 2020 & 2030, India will account for 14.1% of global construction growth. The United States will capture just 11.1% over this period.
Meanwhile, China will lead with a commanding 26.1% share. Together, India & China will drive nearly 40% of global growth. Global construction spending reached $15.97 trillion in 2024. This figure will likely rise to $19.86 trillion by 2028. Infrastructure represents the fastest-growing segment within the global construction industry. Globally, it expanded at a 5.1% rate between 2020 & 2025.
However, India’s infrastructure sector will grow by 8% annually. Heavy investments in railways, airports, & logistics networks fuel this surge. The report identifies five structural forces driving future economic development. These include re-industrialisation, energy upgrades, & defence infrastructure.
Additionally, artificial intelligence & cloud computing trigger fresh construction cycles. Fundamental predicts that global data centre projects will double by 2030. Rising electricity demand driven by technological advancements requires massive energy investments. Therefore, spending on renewable energy & battery storage is increasing rapidly. Despite this rapid expansion, global construction productivity remains chronically low. Since 2000, productivity has improved by just 0.4% annually.
The industry desperately needs new technologies to boost execution efficiency. Shubhankar Bhattacharya, a general partner at Fundamental, shared his perspective. He noted that India sits in a prime position for long-term growth. The nation benefits uniquely from the ongoing global energy transition.
Ultimately, India will remain a highly influential economic contributor through 2030.
(Source: Business Today)
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