India’s construction sector to rebound to 6–8% growth in FY27: ICRA
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India Construction Sector Growth: After two slow years, revival in road projects and Jal Jeevan Mission spending is expected to drive growth, though margins may remain under pressure due to intense competition and rising costs.
Construction 2 min read India’s construction sector to rebound to 6–8% growth in FY27: ICRA After two slow years, revival in road projects and Jal Jeevan Mission spending is expected to drive growth, though margins may remain under pressure due to intense competition and rising costs. ET Infra Desk ETInfra Published On Mar 30, 2026 at 12:34 PM IST Copy Link Share on WhatsApp Share on Linkedin Share on X Share on Telegram Share on Facebook “ICRA expects the industry to witness a revenue growth of 6-8 per cent in 2026-27 against 2-4 per cent in 2025-26 estimated,” it added.India’s construction sector is likely to witness a muted revenue growth of 2-4 per cent in 2025-26, after an almost flat performance in 2024-25, according to an analysis by ratings agency ICRA. ICRA said that the revenue growth of construction players hit a speed bump in 2025-26, with road focussed contractors among the worst hit. However, it expects the industry to witness a revenue growth of 6-8 per cent in 2026-27 after two bleak years. “Shrinking order book of road contractors amid muted project awarding by the Ministry of Road Transport and Highways (MoRTH) and slowdown in Jal Jeevan Mission (JJM) related construction projects were among the key reasons behind the slowdown,” it added. Advt However, engineering, procurement and construction players that are focussed on urban infrastructure projects, mining, power and irrigation sectors continued to witness a healthy growth. While order inflows in 2025-...
