Market Trends of India Roofing Industry
Booming Construction and Urban Development in India: FDI Growth and Future Projections
The real estate segment includes residential properties, offices, retail spaces, hotels, and leisure parks. In contrast, the urban development segment covers areas such as water supply, sanitation, urban transport, schools, and healthcare. As per industry reports from 2023, India's population was expected to reach 1.64 billion by 2047, with an estimated 51% residing in urban centers. From April 2000 to March 2024, the construction (infrastructure) sector attracted foreign direct investment (FDI) inflows totaling USD 33.91 billion, making it one of the top recipients of FDI in the country.
Under the automatic route, 100% FDI is permitted in completed projects for the operations and management of townships, malls, shopping complexes, and business constructions. Similarly, 100% FDI is also allowed for urban infrastructures, including urban transport, water supply, sewerage, and sewage treatment, all under the automatic route.
Projections indicate that by 2047, more than half of India's populace will reside in urban locales, amplifying the demand for residential, commercial, and infrastructural projects. Furthermore, the Indian government's favorable policies, such as permitting 100% Foreign Direct Investment (FDI) through the automatic route, enhance the allure of these sectors for global investors. With a steady influx of FDI into both infrastructure and real estate, India's construction landscape is primed for ongoing expansion and burgeoning opportunities.
Government-Driven Growth in Affordable Housing: A Key Catalyst for the Roofing Market in India
As reported by an industry-leading financial platform, the 2022 national budget underscored the government's commitment to the housing sector, allocating INR 50,000 crore (USD 6111.43 billion) to the Ministry of Housing and Urban Development (MoHUA) and establishing a USD 3.5 billion fund to expedite stalled housing projects. With urbanization in India projected to rise from 33% to over 40% by 2030, Invest India estimates a demand for an additional 25 million mid-range and affordable housing units.
In 2023, under the Pradhan Mantri Awas Yojana (PMAY), also known as The Prime Minister's Housing Plan, India saw the completion of 5.4 million houses in urban areas. However, in 2020, the demand for housing among the urban poor was estimated at around 11 million housing complexes.
The government's commitment is evident through substantial financial investments and programs like PMAY, underscoring its determination to address the housing shortage. As urbanization accelerates and the demand for mid-range and affordable housing intensifies, the sector emerges as a lucrative avenue for investment and development. Yet, to truly cater to the housing needs of India's burgeoning urban populace, sustained efforts are essential to bridge the existing deficit.
